Appliance Repair and Maintenance

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,500 repair services in the US provide repair, installation, and maintenance services for household appliances, such as refrigerators, stoves, washing machines, dryers, water heaters, and room air conditioners. While the majority of revenue is derived from servicing household appliances, companies may provide service for other types of appliances or equipment or resell merchandise. Manufacturers, retailers, or dealers may outsource repair or warranty service to independent appliance service providers.

Dependence on Manufacturers

Appliance service providers depend on manufacturers to supply replacement parts, provide training and support, and develop reasonable warranty repair programs.

Warranty Work Less Attractive

Appliance manufacturers’ efforts to cut costs have resulted in warranty programs that are less profitable for service providers.

Industry size & Structure

The average appliance service provider operates out of a single location, employs 4 workers, and generates about $792,000 annually.

    • The appliance repair and maintenance services industry consists of about 4,500 companies that employ about 19,000 workers and generate about $3.5 billion annually.
    • The industry is somewhat fragmented; the top 50 firms account for just over 40% of industry sales.
    • The majority of firms are small, independent companies. Sears employs its own service technicians, both directly and through A & E Factory Services.
                            Industry Forecast
                            Appliance Repair and Maintenance Industry Growth

                            Coronavirus Update

                            Nov 19, 2021 - Appliance Shortage Drives Repair Demand
                            • After an initial run on appliances in the early days of the pandemic, manufacturers cut back on production amid factory shutdowns and an anticipated reduction in consumer spending. Appliance production has also been affected by a scarcity of key components such as wiring harnesses, compressors, steel, and semiconductors, which also saw production disruption earlier in the pandemic.
                            • Some repair firms have used Zoom video services to communicate with customers and remotely diagnose appliance issues, walk owners through troubleshooting steps, and determine what parts may be needed if an onsite visit is required. Repair and maintenance firms have also created safety protocols, often based on CDC guidelines, to protect technicians and property owners. Repair firms are outfitting service personnel with masks, gloves, and hand sanitizer. Technicians request the shortest route through the home to reach the appliance and offer touchless payment options (phone or online). As vaccine distribution increases, consumers and technicians may be more comfortable with in-home services. On April 19, all Americans over age 16 became eligible to be vaccinated. As of October 18, more than 189 million Americans were fully vaccinated or about 57% of the US population.
                            • • Strong demand for housing and persistent scarcity of key inputs, including steel and computer chips, continue to drive an appliance shortage. The value of manufacturers’ unfilled orders for household appliances increased nearly 37% in September 2021 compared to a year earlier, according to the US Census Bureau. Scarcity is driving up appliance prices; US consumer prices for major appliances were up nearly 6% in October 2021 compared to a year earlier, according to the Bureau of Labor Statistics. Finished goods and components may also be caught in a supply chain bottleneck at the Ports of LA and Long Beach. As of November 16, there were 84 containerships waiting to unload at the ports of LA and Long Beach, according to PBS Newshour. Normally there are only a few. Amid stretched supply chains and components scarcity, manufacturers - including appliance makers - are increasingly focused on producing higher end models that are more profitable. Tight appliance retail supplies, long delivery wait times, and rising prices may prompt consumers to have existing appliances repaired to tide them over until supply constraints and pricing ease.
                            • The appliance repair industry is starting to attract new entrants as people who have lost their jobs or seek a career change are attracted by the uptick in demand and potential for good wages. Prior to the pandemic, appliance repair jobs were expected to decline nearly 7% between 2019 and 2029, according to the Bureau of Labor Statistics (BLS). However, the industry’s main US trade group – the United Appliance Servicers Association – says demand for technicians is strong, primarily because there are only two major appliance repair schools in the US where new technicians can receive training.
                            • The pandemic-related appliance shortage and resulting rise in demand for repair services has brought more attention to Right to Repair legislation initiatives in some states. Some manufacturers restrict access to parts, tools, and repair manuals for appliances and electronics that contain digital technology, which is more prevalent with the increased popularity of IoT-enabled smart appliances. Such restrictions require repairs to be performed by manufacturer-approved technicians, which critics argue stifles competition and consumer choice. Opponents to Right to Repair argue it can result in unauthorized access to intellectual property. The US Public Interest Research Group, which is supportive of Right to Repair initiatives, says the average US family could save more than $300 per year by having appliances and electronics repaired instead of replacing them. In July, President Biden issued an executive order that calls for the Federal Trade Commission (FTC) to create regulations that compel manufacturers to adopt policies that enable Right to Repair.
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