Computer & Office Equipment Distributors NAICS 423420, 423430

May 1, 2025 - Some Electronic Products Exempted From Tariffs

• Some electronics products imported to the US have been exempted from President Trump’s reciprocal tariffs, according to US Customs and Border Protection. Profit margins of computer facilities management services may be compressed if tariffs are applied to these products in the future. The exemption, which comes after the Trump administration imposed a minimum tariff rate of 145% on Chinese goods imported to the US, does not include the 20% tariff on Chinese goods for the country’s alleged role in the fentanyl trade. Smartphones, computer monitors, and various electronic parts are among the exempted products. The exemption applies to products entering the US or removed from warehouses as early as April 5.
• Total US Commercial bankruptcy filings increased 10% year over year in March 2025, according to Epiq AACER, a provider of US bankruptcy filing data. Computer facilities management services may be impacted by changing technology expenditures due to bankruptcy filings. Commercial chapter 11 filings increased 20% year over year in March. Small business filings, captured as subchapter V elections within chapter 11, decreased 1% year over year in March. “The 20 percent rise in commercial Chapter 11 filings in March 2025 signals persistent economic pressure, mirrored by a 10 percent increase in total commercial filings,” said Michael Hunter, Vice President of Epiq AACER. “Meanwhile, credit card delinquencies have hit a near 10-year high, driven by rising interest rates and consumer debt burdens.

• Workplace occupancy, an indicator of demand for office equipment, was 53.4% for the seven-day period ending on April 16, down from 54.2% for the seven-day period ending on April 9, according to data gathered from swipes of access control cards in buildings with security systems provided by Kastle Systems. Occupancy has struggled to remain above the 50% mark since the early days of the coronavirus pandemic despite attempts by many organizations to bring employees back. The Houston, TX, metropolitan area had the highest occupancy for the seven-day period ending on April 16 at 63.4%. The San Francisco, CA, metropolitan area trailed all others tracked at 42.5%.
• Computer and office equipment distributor industry employment was unchanged and average wages for nonsupervisory employees decreased slightly during the first month of 2025, according to the US Bureau of Labor Statistics. Computer and office equipment industry sales are forecast to grow at a 3.2% 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. Professional and commercial equipment distributor inventories remain significantly above pre-pandemic levels.