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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,800 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.
Competition from Retailers, Dealers, Handymen, DIY
Appliance service providers compete with dealers/retailers, handymen, and brave consumers willing to attempt repair jobs.
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 4,800 companies that employ about 20,000 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.
Industry Forecast
Appliance Repair and Maintenance Industry Growth
Recent Developments
Mar 21, 2024 - Employment, Wages Rise
- Employment for household goods repair and maintenance firms, including the appliance repair and maintenance segment, has grown by almost 10% in 2023 since pre-pandemic levels, according to the Bureau of Labor Statistics (BLS). Employment was flat in December 2023 compared to a year ago. Wages for the industry have seen a significant increase, with a nearly 10% rise in late 2023 compared to a year ago and up 15% from 2019. Average hourly wages reached a high of $23.43 in Q4 2023. Additionally, consumer spending levels showed a slight upward trend in the first nine months of 2023, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- Homeowners are buying large appliances more often than 15 years ago, shortening the appliance upgrade cycle, according to an analysis by Zonda Media reported by CNBC. The analysis found that homeowners are now replacing their large appliances every eight to nine years, compared to replacing them every 12 or 13 years from 1995 to 2005. In addition, consumers are spending more than a third more on appliances than they did 15 years ago beyond inflation. Per the article, Todd Tomalak, Zonda’s principal of building products research, said that today’s appliances have more advanced technology and complex features but also become obsolete sooner and have more aspects to repair than appliances years ago.
- Appliance repair shops will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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