SIC 7629
ELECTRICAL AND ELECTRONIC REPAIR SHOPS, NOT ELSEWHERE CLASSIFIED



This industry category includes establishments that primarily repair electrical and electronic equipment, such as electrical household appliances and electrical and electronic industrial equipment.

NAICS Code(s)

443111 (Household Appliance Stores)

811212 (Computer and Office Machine Repair and Maintenance)

811213 (Communication Equipment Repair and Maintenance)

811219 (Other Electronic and Precision Equipment Repair and Maintenance)

811412 (Appliance Repair and Maintenance)

811211 (Consumer Electronics Repair and Maintenance)

Specialized electronic repair emerged as an industry after electrical devices appeared in the late 1800s and early 1900s. The development of electronic standards and measuring devices in the 1890s was pivotal to the industry's birth. The profusion of new electrical and electronic goods after World War II pushed miscellaneous electrical repair industry revenues to nearly $2 billion by the end of the 1970s.

Widespread semiconductor use during the 1970s and 1980s in turn expanded the use of electronics in American homes and businesses. Miniaturized electronics were integrated into traditional items, such as home appliances and razors. They also created new product categories, such as microwave ovens and fax machines. As sales of that equipment doubled to reach more than $6 billion during the late 1980s and early 1990s, demand for repair of new semiconductor manufacturing equipment went up.

The growth of new applications boosted electrical repair industry billings to about $3.5 billion by 1987 — a 60 percent increase from early 1980s revenues. As sales rose in the 1980s, industry jobs went from 41,000 in 1982 to about 56,000 in the late 1980s. The number of companies in the industry expanded from 6,800 to 8,600, although a recession in the late 1980s and early 1990s stalled industry growth. Slowly recovering markets in the mid 1990s allowed many companies to boost sales and strengthen margins. In 1996, the industry as a whole had approximately 11,295 establishments and estimated revenues of $8.17 billion. In 1997, the industry had 12,490 establishments and receipts of $13.02 billion.

The leader in this sector is Sears Roebuck & Co. In 1997 Sears had a 10 percent share in the appliance/electronics repair market, with some $2 billion in revenues. Other successful companies engaged in this sector include Black and Decker Corporation's Products Service Division in Hampstead, Maryland, with 1997 sales of $172.7 million; Barfield, Inc., which repairs aircraft flight instruments, with 1997 sales of $35 million and 300 employees; and Tandy Corporation's Radio Shack.

About 396,000 electronic equipment repair specialists held jobs in the mid 1990s. According to the Bureau of Labor Statistics, overall employment of these repair people was expected to grow slowly through 2006. Although demand for computer and office machine repairers, commercial and industrial electronic equipment repairers, and communications equipment mechanics is expected to expand, jobs for electronic home entertainment equipment repairers and telephone installers and repairs are forecast to plunge.

Jobs in this industry pay well compared to other service industries. The payroll per employee in the early 1990s was about $20,000 per year, compared to about $18,000 for other service sectors. In 1996, the average service technician made $9.03 to $15.48 per hour, according to a private industry survey. Most electrical Repair people earned $500 to $600 per week, but these jobs required a more educated worker. Most entry-level positions required completion of a one-or two-year vocational training program, or on-the-job training in the U.S. armed forces.

Further Reading

Darnay, Arsen J., ed. Service Industries USA. Farmington Hills, MI: Gale Group, 1996.

Hoover's Online Company Capsules. Available from http://www.hoovers.com/ .

Occupational Outlook Handbook. 1998-99. U.S. Department of Labor. Bureau of Labor Statistics. Available from http://stats/bls.gov/oco/ocos183.htm .

"Other Services (Except Public Administration) — 1997 Economic Census." U.S. Department of Commerce. Bureau of the Census. December 1999. Available from http://www.census.gov/prod/ec97/97s81-us.pdf .

Service Dealer's Newsletter. 1997 Press Release Summary from The Electronics Technicians Association International.

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