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Electronic Equipment Repair Services
First Research, Sep 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US electronic equipment repair service industry includes about 13,000 companies with combined annual revenue of $15 billion. The industry is mostly made up of privately held companies with one location, fewer than 20 employees, and revenue under $1 million. The industry is fragmented.
The industry includes companies that provide primarily repair services for electronic equipment like computers, consumer electronics, and communication products, and for precision equipment like medical and scientific instruments, but doesn't include household appliances or autos. The industry doesn't include companies that primarily manufacture or rebuild products, or sell new items with after-sale services and repairs.
COMPETITIVE LANDSCAPE
Demand is driven by the installed base of electronic equipment, equipment failure rates, and the cost advantage of regularly maintaining and fixing broken and idle equipment, rather than replacing it. The profitability of individual companies depends on service accuracy, speed, and volume. Large companies have advantages in breadth of services, worker allocation, and the number of manufacturers and types of products supported. Small companies can compete effectively by specializing by manufacturer or product type and providing superior service. The industry is labor-intensive: average annual revenue per worker is about $145,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are repair and maintenance of consumer electronics, computers, office machines, communication equipment, and precision devices. Computer repair and maintenance provide 35 percent of industry revenue; precision devices, 35 percent; and communication equipment, almost 15 percent.
Industry companies ...
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