Computer, Electronic & Precision Equipment Repair
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 10,300 in the US repair and maintain computers, office equipment, consumer electronics, communications equipment including cellular devices, tablets, and broadcasting equipment, as well as scientific and medical equipment. Repair and maintenance service providers may operate as third-party maintenance (TPM) providers, contract with electronics manufacturers, or become preferred providers for warrantee and recall repair services. Firms may serve a broad range of customers or specialize in a particular vertical, such as cellular devices or medical equipment.
Replace Versus Repair
Falling prices characterize the information technology industry with many customers choosing to replace equipment at the end of service life (EODL) rather than repair and maintain aging technology, which eliminates the opportunity for repair revenue.
Broader Repair Offerings
While some businesses in the industry specialize in mobile devices or medical equipment, many others are expanding their repair and maintenance offerings to cover a broader range of products, creating opportunities to grow their customer base and revenue.
Industry size & Structure
The average computer, electronic, and precision equipment repair and maintenance firm operates out of a single location, employs fewer than 10 workers, and generates $1-2 million annually.
- The computer, electronic, and precision equipment repair and maintenance industry consists of about 10,300 firms that employ about 106,000 workers and generate about $17.7 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for nearly half of industry revenue.
- Large firms include Geek Squad (Best Buy), United Radio, Precision Camera, AbelCine, iFix, Electronic Wizard, Maintech, Park Place Technologies (Curvature), Service Express, MERA, Applied Technical Services (ENI Labs), Intertek, and Crothall.
- Firms may have international operations.
Industry Forecast
Computer, Electronic & Precision Equipment Repair Industry Growth
Recent Developments
Dec 17, 2024 - Consumer Electronics Manufacturers’ Warranty Claims Costs Increase
- The consumer electronics industry had an average warranty claims rate of 1.43% in 2023, according to Warranty Week. The computer industry had an average claims rate of 1.46% during the period. The consumer electronics industry paid $100 million in claims during 2023, up 8% from 2022. Manufacturers in the computers industry spent $2.08 billion on warranty claims in 2023, down 39% from 2022. This steep drop is due to largely to a decision by Apple to stop reporting warranty expenses. Apple reported its claims costs for the first two quarters of 2022 but not the third or fourth, so the industry's total claims costs decreased 31% from 2021 to 2022 and an additional 39% from 2022 to 2023, as each half of Apple's annual claims costs disappeared from the data.
- Six states have enacted right-to-repair laws as of mid-2024, with five doing so in the past three years. Massachusetts was the first state to introduce a right to repair automobiles in 2012. The first comprehensive law on consumer electronics repairs for devices sold, used or manufactured after July 1, 2023, was passed in New York in March of that year. California followed suit with a comprehensive electronic devices right-to-repair bill in October 2023. Colorado became the latest US state to sign into law a bill regulating the right to repair for consumer electronics like smartphones or laptops. The Colorado law, passed in May 2024, excludes "marine vessels, aviation, and motor vehicles; medical devices other than powered wheelchairs; certain safety and security equipment; certain construction- and energy-related equipment; and video game consoles", according to the text of the bill.
- Workplace occupancy, an indicator of demand for office equipment, was 51.4% for the seven-day period ending on October 23, up from 51% for the seven-day period ending on October 16, according to data gathered from swipes of access control cards in buildings with security systems provided by Kastle Systems. Occupancy rarely hit the 50% mark from the early days of the coronavirus pandemic through early 2024 despite attempts by many organizations to bring employees back. The Austin, TX, metropolitan area had the highest occupancy for the seven-day period ending on October 23 at 64.1%. The San Francisco, CA, metropolitan area trailed all others tracked at 41.6%.
- Computer, electronic, and precision equipment repair and maintenance industry sales are forecast to decrease at a 0.9% compounded annual rate from 2022 to 2027, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Computer, electronic, and precision equipment repair and maintenance industry employment was unchanged and average wages for nonsupervisory employees increased moderately during the first nine months of 2024 , according to the US Bureau of Labor Statistics.
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