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 20,100 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 10 employees, and generates $1.9 million in annual revenue.

    • The industry consists of about 20,100 firms that employ 207,300 workers and generate $38.8 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 2.4% of firms have over 100 employees.
                                    Industry Forecast
                                    Equipment & Machinery Repair Services Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 4, 2022 - Semiconductor Shortage Becomes Surplus
                                    • Semiconductor manufacturers including Taiwan Semiconductor Manufacturing Company (TSMC), Advanced Micro Devices, and Nvidia are now dealing with "unsold stockpiles" of computer chips and other semiconductor products as a result of shrinking demand and cancelled orders, according to a new report by Caixin media group. Firms experiencing parts shortages may see greater availability at lower prices. Manufacturers are dealing with "six months of stockpiles" that they built up as a result of 2021's shortage and once-optimistic demand forecasts, according to industry experts contacted by Caixin. Semiconductor manufacturers including Intel and TSMC say, however, that massive new infrastructure projects launched as a result of the shortage will continue.
                                    • The strengthening US dollar threatens to undermine a rebound in American manufacturing, according to many economists. The US dollar’s high value relative to the euro, the Japanese yen, the British pound, and other currencies makes foreign-made goods cheaper to import, while exports of US-made goods grow more expensive for foreign buyers. Experts say that the dollar’s strength is due to a resurgent US economy following Covid-19-related shutdowns in 2020 and the Federal Reserve’s efforts to reduce inflation.
                                    • 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 comes just two weeks after Biden signed 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. Equipment and machinery 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.
                                    • Equipment and machinery repair services are likely to benefit from sustained interest in reshoring and/or expansion of domestic manufacturing. The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10% gain on all building projects combined, according to Dodge Construction Network. Richard Branch, the chief economist at Dodge, cites a major re-assessment of supply chains in the wake of port bottlenecks, parts shortages, and skyrocketing shipping costs that have wreaked havoc on corporate budgets as key drivers.
                                    Get A Demo

                                    Vertical IQ’s Industry Intelligence Platform

                                    See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                    Build valuable, lasting relationships by having smarter conversations -
                                    check out Vertical IQ today.

                                    Request A Demo