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 10,400 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 10,400 firms that employ about 107,000 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
May 14, 2024 - Weak Sales Growth Expected
- Computer, electronic, and precision equipment repair and maintenance industry sales are forecast to decrease at a -0.36% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Computer, electronic, and precision equipment repair industry employment and average wages for nonsupervisory employees were unchanged during the first quarter of 2024, according to the US Bureau of Labor Statistics.
- Bankruptcy filings continue increasing toward pre-pandemic levels, according to Fitch Ratings, and computer, electronic, and precision equipment repair firms may be negatively impacted as a result. Overall corporate bankruptcy filings increased 40% to 18,926 in 2023, normalizing from 13,481 filings in 2022, but remain around 18% below the pre-pandemic average from 2016 to 2019. Chapter 7 liquidations increased 32% year over year in 2023, while Chapter 11 reorganizations increased 58% for the year. Higher-for-longer interest rates and approaching loan maturity walls will lead to an up-tick in high-yield and leveraged-loan defaults, including distressed debt exchanges and corporate bankruptcies, according to Fitch.
- The US office vacancy rate, an indicator of demand for office equipment repair, rose to a record-breaking 19.6% in the fourth quarter of 2023, according to Moody’s Analytics. More US office space is currently empty than at any point since 1979. Suburban office spaces fared better than those in cities due to their proximity to residential communities and, in some cases, shorter commute times for employees.
- Proposals in at least 23 states would require electronics companies and other manufacturers to make the tools, parts, and information needed to fix their products reasonably available, according to Bloomberg Law. The state-level activity follows first-in-the-nation laws in New York and Colorado. Opponents, from John Deere equipment dealers to groups representing Samsung and Apple, have said that company-authorized repair programs benefit consumer safety. Opponents also raised concerns that the bills would violate intellectual property protections.
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