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
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                Jun 3, 2022 - Promising Right To Repair Legislation Dies
                                • A California Right to Repair bill died in committee in late May despite broad consumer support for fixable products. Many Right to Repair advocates say that tech companies that benefit by controlling who can repair their goods and that have lobbied against Right to Repair bills all over the US were responsible for result. Thirty-four states have begun developing Right to Repair legislation, according to The Repair Association. And the Federal Trade Commission said in a 2021 report that it supports expanding consumers' repair options, as does the White House. Analysts say that this effort was particularly significant because it was the closest that right to repair legislation has gotten to becoming law.
                                • 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 early June, with the seven-day rolling average increasing to roughly 103,000 on June 1, up from 85,630 on May 11 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.
                                • Workplace occupancy, an indicator of demand for office equipment repair, was 42.9% for the seven-day period ending on May 25, down slightly from 43.3% for the seven-day period ending on May 18 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 25 at 58.8%. The San Francisco, CA, metropolitan area trailed all others tracked at 33.6%.
                                • 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 April.
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