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 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 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

                                    Coronavirus Update

                                    May 13, 2022 - Farm Income Expected To Decrease
                                    • Net farm income, a broad measure of profits, is forecast by the US Department of Agriculture to have increased by $23.9 billion (25.1%) year over year in 2021 and is forecast to decrease by $5.4 billion (4.5%) year over year in 2022. The $113.7 billion in net farm income forecast for 2022 would be 15.2% above the 2001–20 average of $98.7 billion when prior years are adjusted for inflation. Net farm income adjusted for inflation is forecast to decrease by $9.7 billion (7.9%) in 2022 from 2021.
                                    • Economists at Goldman Sachs see three main solutions for manufacturers and retailers that hope to improve supply chain resilience: reshoring foreign production, diversifying supplier networks, and overstocking inventories. Overstocking, or targeting a permanently higher level of inventories, is the strategy that’s most clearly underway, especially in durable goods, the Goldman Sachs economists say. Companies analyzed by the multinational investment bank and financial services company are aiming for inventory-to-sales ratios roughly 5% higher than before the pandemic on average. Construction of new domestic manufacturing facilities “has mostly gone sideways,” the economists said. Imports of foreign parts and final goods have grown faster than domestic manufacturing output, they added, suggesting that many supply chains still depend on foreign sources for production materials.
                                    • Commercial bankruptcy filings decreased 4% month over month in April after increasing 26% month over month in March, according to Epiq Bankruptcy Solutions. Commercial bankruptcies decreased 5.4% month over month in February, and 11.2% month over month in January. Commercial bankruptcies were down 16% year over year in April. Small business bankruptcy filings known as subchapter V cases, a new type of filing that went into effect in February 2020 under the Small Business Reorganization Act, decreased 40% month over month in April after hitting record numbers in March.
                                    • Capacity utilization for the manufacturing sector as a whole, an indicator of demand for equipment and machinery repair, increased from a low of 60.4% in April 2020 to 78.% in March, remaining above the 75% level achieved in 2019. Total capacity utilization, including factories, mines and utilities, increased to 78.3% in March. That rate compares with 74.8% in March 2021.
                                    • Employment in the equipment & machinery repair services industry increased 10.3% year over year in March.
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