Equipment & Machinery 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 20,000 equipment and machinery repair services in the US are primarily engaged in restoring commercial and industrial equipment and machinery to working order. Firms also provide general and routine maintenance services to keep equipment operating efficiently and to prevent breakdowns and unnecessary repairs. The industry does not include automotive, electronic, or precision equipment repair services.
Competition from Manufacturers and Wholesalers
Both equipment manufacturers and wholesalers often view maintenance services as an attractive source of additional revenue and a way to maintain close relationships with customers.
Keeping Up with Technology Advances
As manufacturers introduce new types of machines and new models of existing products, repair services must quickly come up to speed on how to repair and service them effectively and efficiently.
Industry size & Structure
The average equipment and machinery repair service operates a single location, has fewer than 10 employees, and generates $2-3 million in annual revenue.
- The industry consists of about 20,000 firms that employ 242,000 workers and generate $51.6 billion in annual revenue.
- The industry is highly fragmented, as the largest 50 firms have 33% of industry revenue.
- About 92% of firms operate a single location.
- 63% of firms have fewer than 5 employees and 2.6% of firms have over 100 employees.
Industry Forecast
Equipment & Machinery Repair Services Industry Growth
Recent Developments
Jul 16, 2024 - Labor Costs Increase
- Equipment and machinery repair industry employment and average wages for nonsupervisory employees increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Equipment and machinery repair services slightly decreased their prices during the first five months of 2024, according to the BLS.
- Bankruptcy filings continue increasing toward pre-pandemic levels, according to Epiq Bankruptcy, and equipment and machinery repair services may be negatively impacted as a result. New filings increased year over year across all US major filing categories during the first quarter of 2024. Total commercial chapter 11 filings (including subchapter V) registered the largest increase, as the 1,894 filings during the first quarter of 2024 were up 43% from the 1,325 total commercial chapter 11s during the same period in 2023. Total overall commercial bankruptcies increased 22% in the first quarter of 2024, as the 7,113 filings surpassed the 5,820 commercial filings during the first quarter of 2023. Subchapter V elections for small businesses increased 30% to 606 filings in Q1 2024 from the 465 filed during Q1 2023.
- More large firms are likely to face high risk of insolvency during 2024 due to the “double whammy” of high borrowing costs and pressure on consumer budgets, according to insolvency experts including Rob Hornby, partner and managing director of AlixPartners. Equipment and machinery repair services may be negatively impacted if spending on maintenance decreases. The director at the restructuring and advisory specialist said that typically high-growth areas, such as technology, could see turbulence as financing comes under increased pressure. Hornby and Richard Fleming, also of AlixPartners, both said that they expected more firms to use restructuring plans this year in an effort to avoid full insolvency administrations.
- At least 16 states are considering Right to Repair bills covering farm equipment, according to public-interest group PIRG. The state-by-state movement is happening in spite of the fact that the American Farm Bureau Federation has signed multiple memoranda of understanding with major machinery manufacturers to ensure farmers’ right to repair their own equipment. The first one came in January, when the Farm Bureau and John Deere announced an agreement that “formalizes farmers’ access to diagnostic and repair codes, as well as manuals … and product guides.” The federation has since announced agreements with CNH Industrial Brands, Kubota, and AGCO that, when combined, cover roughly 70% of the agricultural machinery sold in the US, according to the Farm Bureau.
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