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 4,700 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Dec 3, 2022 - Nation’s First Right-to-repair Legislation Faces Automatic Veto
                                • The New York state legislature passed in June 2022 the country's first “right to repair” bill covering electronics, but it will be automatically vetoed if it isn’t signed into law by December 31st of 2022. The Fair Repair Act, if signed into law, would require all manufacturers who sell “digital electronic products” within state borders to make tools, parts, and instructions for repair available to both consumers and independent shops. Many experts say that the law is likely to have an impact far beyond the borders of New York state. It’s likely that repair manuals would quickly become available around the world if manufacturers selling goods in New York are required to make them available there.
                                • President Biden signed an executive order that is intended to quickly increase domestic production of semiconductors, strengthen semiconductor research, and extend US semiconductor design leadership. The order, which follows the passage of the $280-billion CHIPS and Science Act into law, will establish a 16-member implementation steering council made up of cabinet secretaries and top White House officials from across Biden's national security and economic teams. The order also details Biden's six priorities for implementing the Chips and Science Act in the months ahead. Details include a series of factors that should guide the timely development and oversight of the private sector relationships required for the allocation of funding that is meant to enhance long-term economic and national security by increasing domestic chip manufacturing.
                                • The CHIPS and Science Act is a scaled-down version of previous bills. It offers more than $52 billion for US chipmakers and tax credits for domestic factories but isn't expected to affect production in the short term. Computer and office equipment repair services are likely to benefit from a more resilient technology supply chain, but experts say that it will take companies years to build new factories and upgrade facilities to tackle chip shortages and reduce heavy US reliance on imports.
                                • The New York state legislature has passed the country's first “right to repair” bill covering electronics. The Fair Repair Act, if signed into law, would require all manufacturers who sell “digital electronic products” within state borders to make tools, parts, and instructions for repair available to both consumers and independent shops. Many experts say that the law is likely to have an impact far beyond the borders of New York state. It’s likely that repair manuals will quickly become available around the world now that manufacturers selling goods in New York are required to make them available there. More invasive software measures will also become impractical, which could lead to broad changes in how electronics are designed and maintained.
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