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 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 4,500 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 fewer than 10 workers, and generates about $1 million annually.

    • The computer and office equipment repair industry consists of about 4,500 firms that employ about 30,200 workers and generate about $4.7 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 14, 2023 - Weak Sales Growth Expected
                                • Computer and office equipment repair and maintenance industry sales are forecast to grow at a 1.31% compounded annual rate from 2022 to 2027, slower than the growth of the overall economy. Industry labor costs increased during the first eight months of 2023 as employment levels were unchanged during the period while average wages for nonsupervisory employees increased moderately.
                                • The number of public and private corporate bankruptcies filings totaled 516 this year through September, according to an S&P Global Market Intelligence report. That’s just below the 518 filings in the first three quarters of 2020, when the US economy suffered through a short but deep recession as a result of the coronavirus pandemic. Filings that year totaled 639. The Federal Reserve’s interest-rate increases, meant to fight inflation by cutting demand for goods and services, may be responsible, according to Barron’s, as many companies paying more to borrow, and sales are at risk too. Computer and office equipment repair services may be negatively impacted if spending on technology decreases.
                                • Workplace occupancy, an indicator of demand for computer and office equipment repair, was 47.2% for the seven-day period ending on August 23, unchanged from the seven-day period ending on August 16 but down from 48.6% for the seven-day period ending on August 2, according to data gathered from swipes of access control cards in buildings with security systems provided by Kastle Systems. Occupancy has rarely hit 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 August 23 at 60.9%. The San Jose, CA, metropolitan area trailed all others tracked at 38.8%.
                                • 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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