Computer & Office Equipment Repair
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 4,700 industry firms in the US repair and maintain computers and office machinery, including terminals, storage devices, network devices, printers, and copiers. Computer and office equipment repair providers typically operate as third-party maintenance (TPM) providers. They may serve a broad range of customers or specialize in a particular vertical, such as manufacturing or healthcare.
Competition from Alternative Sources
Original equipment manufacturers (OEM) still dominate the computer and office equipment maintenance and repair market.
Replace Versus Repair
Falling prices characterize the information technology industry, and, in many cases, customers may choose to replace older hardware rather than repair and maintain aging technology.
Industry size & Structure
The average computer and office equipment repair firm operates out of a single location, employs 7-8 workers, and generates about $944,000 annually.
- The computer and office equipment repair industry consists of about 4,800 firms that employ about 36,600 workers and generate about $4.5 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 45% of industry revenue. According to Gartner, a limited number of firms generate more than $100 million in TPM revenue, and most providers generate less than $10 million from TPM.
- Large firms, which include SMS/Curvature, Maintech, Park Place Technologies, and Service Express, may have international operations.
- TPMs maintain more than 10 million data center/network storage devices, according to Gartner.
Industry Forecast
Computer & Office Equipment Repair Industry Growth
Coronavirus Update
May 13, 2022 - Repair Businesses Benefited From PPP
- Electronics repair and maintenance businesses received about $606 million in Paycheck Protection Program loans, according to an analysis of Small Business Association data by E-scrap News. Computer and office machine repair and maintenance firms received about $289 million, communication equipment repair and maintenance firms received about $117 million, and consumer electronics repair and maintenance firms received about $200 million.
- Demand recovery may slow if the number of new COVID-19 cases continues increasing and firms again delay plans to call employees back to offices. New COVID-19 case rates increased in late April, with the seven-day rolling average increasing to roughly 85,630 on May 11, up from 72,300 on May 7, 58,000 on May 1 and 30,000 cases per day on April 8, according to a New York Times COVID-19 case tracker. Experts note that the American population has different vaccination rates, levels of previous exposure to the virus, and degrees of underlying health conditions, so the trajectory of new cases could vary. Analysts note that the data regarding new cases are getting less reliable as the public testing infrastructure continues to wind down and home test results are less likely to be reported to officials.
- The window to apply for Small Business Administration (SBA) COVID-19 Economic Injury Disaster Loan (EIDL) loans, Targeted Grants, and Supplemental Targeted Grants closed on December 31, 2021. The SBA had $11.8 billion in funds remaining across all of its programs as of December 24, 2021, according to The Business Journals. The SBA has been making billions of loans a week, which means the money could run out soon. The SBA will continue processing loan applications received before the deadline, including requests for reconsideration, and Targeted EIDL Advance (grant) applications, including requests for reconsideration. Small business owners who are still struggling with pandemic-related problems will have to look strategically for other grants and COVID-19 relief programs. Options may include private small business grants, state and local government grants and relief programs, and traditional SBA loans.
- Workplace occupancy, an indicator of demand for office equipment repair, was 43.2% for the seven-day period ending on May 4, down slightly from 43.4% for the seven-day period ending on April 27 but still up from 40.5% for the seven-day period ending on April 20, according to data gathered from swipes of access control cards in buildings with security systems provided by Kastle Systems. The Austin, TX, metropolitan area had the highest occupancy for the seven-day period ending on May 4 at 60.3%. The San Jose, CA, metropolitan area trailed all others tracked at 33.3%.
- Small-business owners who received taxpayer-subsidized Paycheck Protection Program (PPP) loans of $150,000 or less during the coronavirus pandemic can seek forgiveness directly with the government through an online portal that was opened on August 4, allowing them to sidestep the private financial institutions that ran most aspects of the program for 14 months.
- Some businesses that took PPP loans in 2020 but don't apply for forgiveness soon will need to start making payments on the loan plus interest. The PPP loans will automatically convert to a standard loan at 1% interest if a small business does not apply to the SBA for forgiveness within 10 months of the end of the covered period under which they had to spend the money. For some businesses that received a loan when the PPP launched in April 2020, there was an eight-week covered period, which would put the forgiveness application deadline in the middle of July. For most loans operating under the more popular 24-week covered period, that meant a deadline in September 2021.
- Employment in the computer and office machine repair industry was unchanged year over year in March.
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