Industry Analysis & Industry Trends
The industry has been on the decline for the past decade, and revenue will continue to fall over the next five years. Intensifying competition from retailers and manufacturers that offer free or discounted after-sale repair services has reduced demand for the industry. Substitute goods, such as smartphones, have also reduced consumer demand for watches and, thus, repair services. Rising input costs have squeezed profit margins, forcing many operators to exit the industry.... purchase to read more
Industry Report - Industry Investment Chapter
The Watch and Jewelry Repair industry has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.04 in capital investment in 2013. The industry relies heavily on labor, as skilled workers are essential in diagnosing problems, and fixing and restoring watches and jewelry. Furthermore, workers must have a diverse knowledge and skill set as various types of jewelry, precious metals, electronic and mechanical watches all require different levels of workmanship.
Capital intensity has grown in the past five years as employment has fallen and industry operators have been slightly increasing capital investments. Wages have also been falling in an effort from operators to boost falling profit margins... purchase to read more