The tendency to lease computers rather than buy them often means that these products are replaced before they malfunction.
Melbourne, Australia (PRWEB) January 24, 2014
Few people in Australia are comfortable repairing their own computer, and fewer organisations are repairing their own electronic equipment products. While consumers continue to view internal operations of computers as complicated, this has not translated to increased demand for the Computer and Electronic Equipment Repair industry in Australia. According to IBISWorld industry analyst Alen Allday, “businesses today have made two clear shifts in operations that spell trouble for the long-term viability of computer and electronic equipment maintenance providers.” The tendency to lease computers and electronic equipment rather than buy them often means that these products are replaced when, or before, they malfunction. Further, the increasing presence of comprehensive, in-house IT teams means that many computer repairs can be conducted at minimal cost.
Low entry barriers to the industry have resulted in high numbers of repair and maintenance companies, many of which do not employ staff or only employ two or three workers. “Uncertainty in the IT sector in the past five years has led to ex-IT workers establishing their own repair companies after being retrenched from a downsizing industry,” says Allday. However, overall establishment numbers have declined in the past five years due to declining revenue levels and the high number of industry firms. The industry exhibits a low level of concentration with no one company controlling significant market share.
The industry is facing an uncertain future, especially after a difficult past five years. During the five years through 2013-14, industry revenue is estimated to contract at an annualised rate of 3.2%. In 2013-14, industry revenue is forecast to decrease by 2.9% to $1.7 billion. The rapid pace of technological advancements, the growing need for faster processing speeds and the falling price of electronics mean that replacing a faulty machine is often more economical than repairing it. An increasing number of people and business are choosing to purchase computers and electronic equipment new, rather than repair it. While the IT industry and other sectors that use electronic equipment are expected to expand in the next five years, the need for repairs is expected to fall at a steady rate. Industry revenue is forecast to decline as private households and businesses become increasingly willing to lease computers, and as the price of consumer electronics continues to drop, resulting in decreased demand for repairs. The government sector is expected to follow suit and reduce demand for services provided by the Computer and Electronic Equipment Repair industry.
For more information, visit IBISWorld’s Computer and Electronic Equipment Repair report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies operating within the industry provide a wide range of repair and maintenance services on computers, office equipment, medical equipment, electronic instruments and other electronic equipment (excluding domestic appliances). The industry excludes support services provided by computer and equipment manufacturers and wholesalers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.