Report Calls Appliance Repair a Dying Industry in the U.S.
Apr 18, 2012
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A report from IBISWorld says that consumers are increasingly likely to replace rather than repair appliances, which doesn't bode well for the Appliance Repair industry in the United States.
According to analysts Caitlin Moldvay and Douglas Kelly, sourcing data from the Bureau of Labor Statistics, the retail price of appliances has gone down 2.4%, on average, annually in the last decade. That motivates consumers to buy new appliances rather than repair an existing appliance.
The authors also point to the more direct effect of industry warranties offered by appliance makers. This service is often free to the buyer, but such service cuts into independent appliance repair shop prices.
Better appliance durability is also a factor. The authors say OEM technology enhancement means fewer appliance breakdowns requiring repair.
The report said revenue by the Appliance Repair industry fell 5.7% annually over the last decade and are expected to be $3.7 billion in 2012.
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