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

                                    Mar 7, 2023 - Right To Repair Movement Gains Momentum
                                    • Proposals in at least 23 states would require many manufacturers to make the tools, parts, and information needed to fix their products reasonably available, according to Bloomberg Law. The state-level activity follows first-in-the-nation laws in New York and Colorado. Opponents, from Deere and Company equipment dealers to groups representing Samsung and Apple, have said that company-authorized repair programs benefit consumer safety. Opponents also raised concerns that the bills would violate intellectual property protections. Deere and Company announced in January that it will allow repair shops and equipment owners to diagnose and repair farm equipment. Access to the same Deere documentation, data, and diagnostic tools used by authorized repair shops will be made available. Deere and Company had changed its end-user license agreement in 2016 to require all repairs involving embedded software to be done only by authorized technicians.
                                    • Third quarter 2022 reshoring and foreign direct investments (FDI) reached record levels, according to The Reshoring Initiative. Equipment and machinery repair services are likely to benefit from the reshoring of manufacturing activity. FDI was 15% higher than the second quarter — the previous high watermark — with a strong fourth quarter looking to result in a total of more than 350,000 jobs reshored for all of 2022. The Reshoring Initiative's 2022 projection of jobs would mark a nearly 40% improvement over 2021’s total of 255,000. The total number of job reshorings announced since 2010 would top 1.6 million.
                                    • European firms are announcing plans to shift manufacturing to the US. Recent announcements include Luxembourg-based steel maker ArcelorMittal, which is slashing production at two German plants following a better-than-expected performance at its Texas facility; Amsterdam-based chemical company OCI, which has announced plans to invest in its ammonia plant in Texas; Volkswagen, and Danish jeweler Pandora, which are planning US expansions. American firms considering manufacturing facilities in Europe are reconsidering. Tesla paused plans to make its battery cells in Germany while its executives study tax credits offered by the Biden administration's Inflation Reduction Act. “European manufacturers, like all manufacturers, are seeking to mitigate risk in an environment that is currently facing an unusually high level of uncertainty,” says Steve Kozarits of real estate services firm Transwestern. Risk is currently tied to many factors, including political instability, labor shortages, and availability and cost of energy.
                                    • 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 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. 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.
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