Consumer Electronics Repair Services
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 1,700 firms in the US repair and maintain consumer electronics such as cameras, TVs, radios, speakers, amplifiers, media players and recorders. Customers include individuals and households, businesses, and government clients. Firms also contract with electronics manufacturers or become preferred providers for warrantee and recall repair services. Repair and maintenance of computers and communications equipment such as cellphones are not included in this report.
Consumers Replace Rather than Repair
Rather than pay the price to have an existing piece of equipment repaired, consumers often purchase new equipment, which eliminates the opportunity for repair revenue.
Product Recall Opportunities
Firms work with manufacturers to become certified or specialized repair providers, which is handy in the event of product recalls.
Industry size & Structure
A typical consumer electronics repair firm operates out of a single location, employs fewer than 5 workers, and generates about $940,000 annually.
- The consumer electronics repair industry consists of about 1,700 companies, which employ about 13,500 workers and generate about $1.6 billion annually.
- Customers include individual consumers and all types of businesses.
- The 20 largest firms account for 54% of industry revenue, while the rest of the industry is fragmented.
- Companies include Geek Squad (Best Buy), United Radio, Precision Camera, AbelCine, Consumer Electronic Service, iFix NY and Electronic Wizard.
Industry Forecast
Consumer Electronics Repair Services Industry Growth
Recent Developments
Jan 11, 2024 - Inflation Remains Issue for Small Businesses
- Inflation was the most important problem facing small business owners, according to 23% of owners in a survey by the National Federation of Independent Business (NFIB). The NFIB’s Small Business Optimism Index fell 0.1 points in November 2023 to 90.6, marking the 23rd consecutive month below the 49-year average of 98. Small business owners are still encountering historically high job opening levels, with a seasonally adjusted 54% of owners reporting hiring or trying to hire in November. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain elevated as the economy saw a strong third quarter. However, even with the growing economy, small business owners have not seen a strong wave of workers to fill their open positions.” Over 60% of owners reported making capital outlays in the past six months, with 41% spending on new equipment, 23% acquiring vehicles, and 17% improving or expanding facilities.
- Consumer electronics repair companies will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Weaker consumer spending, competitive pressures, and higher prices are expected to limit growth in the US consumer electronics repair services industry, which is projected to increase at about a 1% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. The forecast follows a volatile period during the pandemic, reflected in a sales drop of 4.1% in 2020, an increase of 11.4% in 2021, and growth of 4.8% in 2022.
- Consumer confidence levels rose in December 2023 for the second month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 110.7 in December 2023 from 101 in November 2023. According to Dana Peterson, Chief Economist at The Conference Board, “December’s write-in responses revealed the top issue affecting consumers remains rising prices in general, while politics, interest rates, and global conflicts all saw downticks as top concerns.” Peterson added that the gains in consumer confidence were largest in householders aged 35-54 and households with income levels of $125,000 and above. Plans to purchase homes, autos, and large appliances rose moderately on a month-to-month basis as interest rates moderated.
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