Businesses in the computer and personal and household goods repair sector

Data from January 2023

Planned article update: 12 July 2024

Highlights

The sector for the repair of computers and personal and household goods accounted for 0.3 % of the total employment in the EU in 2020.

The sector for the repair of computers and personal and household goods accounted for 0.8 % of the total number of enterprises in the EU in 2020.

Sectoral analysis of employment by enterprise size class, computer and personal and household goods repair statistics (NACE division 95), EU, 2020
(% share of sectoral employment) - Source: Eurostat (sbs_sc_1b_se_r2)

This article presents an overview of statistics for the repair of computers and personal and household goods in the European Union (EU), as covered by NACE Rev. 2 Division 95. This is the only division within Section S (other service activities) for which structural business statistics (SBS) are compiled and this division completes the SBS coverage of the non-financial business economy which is defined as Sections B to J, L to N and Division 95. It belongs to a set of statistical articles on 'Business economy by sector'.

Full article

Structural profile

There were over 187 000 enterprises operating with the repair of computers and personal and household goods (Division 95) as their main activity in the EU in 2020, a very slight increase (0.3 % ) compared to pre-pandemic times. Together they employed 3 % less than in 2019, accounting for 338 500 persons. This is equivalent to 0.3 % of the non-financial business economy employment. They generated only 0.1 % of the non-financial business economy total, accounting for €7.8 billion of value added, a decrease of 4 % compared to the previous year.

Table 1: Key indicators, computer and personal and household goods repair statistics (NACE division 95), EU, 2020 - Source: Eurostat (sbs_na_1a_se_r2)

Apparent labour productivity of the EU’s repair of computers and personal and household goods sector in 2020 was €23 000 per person employed, which was well below the non-financial business economy average of €50 900 per person employed and second smallest among all NACE sections that constitute the non-financial business economy (after accommodation and food service activities sector). The repair of computers and personal and household goods sector is characterized as a labour-intensive activity. Despite very low apparent labour productivity , the EU’s average personnel costs for the repair of computers and personal and household goods sector were more than 24 % below the non-financial business economy average: €27 700 per employee for the repair of computers and personal and household goods compared with €36 400 per employee.

The wage-adjusted labour productivity ratio combines the two previous indicators and shows the extent to which value added per person employed covers average personnel costs per employee. The particularly low apparent labour productivity for the repair of computers and personal and household goods sector was below the corresponding level for average personnel costs in 2020, resulting in a wage-adjusted labour productivity ratio below parity (83.6 %). As such, the repair of computers and personal and household goods sector had a lower wage-adjusted labour productivity than any of the NACE sections within the non-financial business economy, while the wage-adjusted labour productivity average non-financial business economy was 139.8 %.

The gross operating rate (the relation between the gross operating surplus and turnover) is a measure of profitability. The gross operating rate for the EU’s repair of computers and personal and household goods sector in 2020 stood at 13.6 %, which was above the non-financial business economy average (10.2 %). This relatively high gross operating rate is achieved as a result of relatively low levels of turnover compared with value added — a pattern that is typical of many labour-intensive service activities (other than distributive trades).

Sectoral analysis

More than two thirds (74.8 %) of the enterprises within the EU’s repair of computers and personal and household goods sector were classified to the repair of personal and household goods (Group 95.2) in 2020, with the remainder repairing computers and communication equipment (Group 95.1). The repair of personal and household goods subsector was also largest in terms of employment, accounting for 65.3 % of the sectoral employment in 2020, and generated 49.3 % of the total turnover. The more technical activity of the repair of computers and communication equipment subsector recorded a slightly higher share of personnel costs, at 54.0 % of the total. The two subsectors show large variations in the contribution to the performance of the overall sector, depending on the derived indicators concerning personnel costs, productivity and profitability.

Figure 1: Sectoral analysis of computer and personal and household goods repair statistics (NACE division 95), EU, 2020
(% share of sectoral total) - Source: Eurostat (sbs_na_1a_se_r2)

The low apparent labour productivity figure for the whole of the EU’s repair of computers and personal and household goods sector (€23 100 per person employed in 2020) was pulled downwards by the subsector for the repair of personal and household goods which recorded only €18 600 of value added per person employed (in 2020) in contrast to €31 900 per person employed recorded for the repair of computers and communication equipment in 2020. The former was still less than a half of the non-financial business economy average (€50 900). Average personnel costs per employee ranged from €32 700 per employee for the repair of computers and communication equipment — just below than the average of €36 400 for the whole of the non-financial business economy — to €23 400 per employee for the repair of personal and household goods.

Table 2a: Sectoral analysis of key indicators, computer and personal and household goods repair statistics (NACE division 95), EU, 2020 - Source: Eurostat (sbs_na_1a_se_r2)

Table 2b: Sectoral analysis of key indicators, computer and personal and household goods repair statistics (NACE division 95), EU, 2020 - Source: Eurostat (sbs_na_1a_se_r2)

The gross operating rate for the EU’s repair of computers and personal and household goods sector was 13.6 % in 2020, which was 33 percent higher than the average for the whole of the non-financial business economy (10.2 %). The gross operating rate for the repair of computers and communication equipment (10.2 %) was at the same level as the average.

Country overview

Figure 2: Relative importance of computer and personal and household goods repair statistics (NACE division 95), 2020
(% share of value added and employment in the non-financial business economy total) - Source: Eurostat (sbs_na_1a_se_r2)

France accounted for almost a quarter (24.9 %) of the EU’s value added within the repair of computers and personal and household goods sector in 2020, a considerably greater share than any recorded by the other EU Member States — see Figure 3. It should be noted that even in those countries with the largest repair of computers and personal and household goods sectors, the contribution of this activity to the non-financial business economy remained low: for example, in Croatia, Spain, Czechia and France, it accounted for just 0.2 % of non-financial business economy value added — the highest shares among any of the Member States. The relative importance of the repair of computers and personal and household goods sector, in terms of the value added, was also low in EFTA countries, ranging from 0.05 % of the non-financial business economy total in Switzerland and Norway to 0.08 % in Iceland.

Figure 3: Concentration of value added and employment, computer and personal and household goods repair statistics (NACE Division 95), 2020
(cumulative share of the five principal Member States as a % of the EU total) - Source: Eurostat (sbs_na_1a_se_r2)

In employment terms, the share of the repair of computers and personal and household goods sector in the non-financial business economy employment peaked at 0.42 % in Spain and 0.40 % in Croatia and Hungary, while shares less than 0.15 % were recorded for Luxembourg, Austria, Sweden and Germany.

Table 3: Largest and most specialised Member States in computer and personal and household goods repair statistics (NACE division 95), EU, 2020 - Source: Eurostat (sbs_na_1a_se_r2)

Table 4a: Key indicators, computer and personal and household goods repair statistics (NACE division 95), 2020 - Source: Eurostat (sbs_na_1a_se_r2)

A large majority of EU Member States had a wage-adjusted labour productivity ratio below parity (100.0 %) with Greece as the country with lowest record of only (42.3 %). A value above the non-financial economy average (139.8 %) was recorded only in Romania (172.3 %).

Table 4b: Key indicators, computer and personal and household goods repair statistics (NACE division 95), 2020 - Source: Eurostat (sbs_na_1a_se_r2)

Size class analysis

The repair of computers and personal and household goods sector is dominated by micro enterprises (employing fewer than 10 persons), which is perhaps unsurprising given the specialist nature of this activity and the lack of national or international players developing their businesses within this area.

Table 5: Key size class indicators, computer and personal and household goods repair statistics (NACE division 95), EU, 2020 - Source: Eurostat (sbs_sc_1b_se_r2)

Out of the 187 000 enterprises that were active in the EU’s repair of computers and personal and household goods sector in 2020, almost all were classified as micro enterprises (98.6 % of the total). Together these micro enterprises employed 239 400 persons, equivalent to more than two thirds (70.7 %) of the total employment for the repair of computers and personal and household goods sector. This was the highest share across all of the NACE sections that constitute the non-financial business economy aggregate.

Figure 4: Relative importance of enterprise size classes, computer and personal and household goods repair statistics (NACE division 95), EU, 2020
(% share of sectoral total) - Source: Eurostat (sbs_sc_1b_se_r2)

Figure 5: Sectoral analysis of employment by enterprise size class, computer and personal and household goods repair statistics (NACE division 95), EU, 2020
(% share of sectoral employment) - Source: Eurostat (sbs_sc_1b_se_r2)

In terms of their contribution to sectoral value added, the share of micro enterprises was lower; indeed, they generated less than half (48.4 %) of the added value within the EU’s repair of computers and personal and household goods sector in 2020. Conversely, the relative shares for small enterprises (employing 10 to 49 persons), medium-sized enterprises (employing 50 to 249 persons), and for large enterprises (employing 250 or more persons) were higher, at 18.3 %, 10.9 % and 22.4 % respectively, than in terms of employment, justifying their higher apparent labour productivity ratios compared to micro enterprises. Figure 6 shows that there was an important difference in the relative contributions of the two subsectors to EU value added when analyzed on the basis of a size class breakdown for 2020. The role of small and medium-sized enterprises was particularly pronounced for the repair of personal and household goods subsector, as those accounted for 92.1 % of the total added value in this subsector; large enterprises employing 250 or more persons generated just 7.9 % of the added value. By contrast, large enterprises within the repair of computers and communication equipment subsector recorded the highest share of value added (38.0 %).

Figure 6: Sectoral analysis of value added by enterprise size class, computer and personal and household goods repair statistics (NACE division 95), EU, 2020
(% share of sectoral value added) - Source: Eurostat (sbs_sc_1b_se_r2)

Within the individual EU Member States (for which data are available ) and EFTA members there was no country were the share of persons employed in micro enterprises was less than 50.0 % with Slovenia being on the top with highest share recorded (92.7 %).

Table 6a: Number of persons employed by enterprise size class, computer and personal and household goods repair statistics (NACE division 95), 2020 - Source: Eurostat (sbs_sc_1b_se_r2)

Several Member States, for which data are available, reported that SMEs accounted for total of value added. Particularly high share of micro enterprises were recorded in Latvia (70.4 %), Slovakia (70.6 %), Bulgaria and Estonia (71.4 %), Ireland (71.6 %) and Slovenia (87.8 %).

Table 6b: Value added by enterprise size class, computer and personal and household goods repair statistics (NACE division 95), 2020 - Source: Eurostat (sbs_sc_1b_se_r2)

Regions

The Île de France (which includes the French capital city of Paris) recorded the highest number of persons employed, across NUTS level 2 regions within the EU, for the repair of computers and personal and household goods sector in 2020. With an employment of 16 100 persons, the Île de France accounted for 4.8 % of the total number of persons employed in the EU in this sector, considerably higher than the second largest regional employer, namely, the Spanish capital city region of the Comunidad de Madrid (12 400 persons).

Figure 7: Ten largest NUTS 2 regions in terms of employment, computer and personal and household goods repair statistics (NACE division 95), EU, 2020 (thousands) - Source: Eurostat (sbs_r_nuts06_r2)

The ranking of the largest regions suggests that employment within the EU’s repair of computers and personal and household goods sector was largely concentrated within French, Spanish, Polish and German regions — particularly those containing some of the major cities: among the top 20 regions, there five from France (including regions covering Paris, Lyon, Bordeaux and Marseille), four from Spain (including regions covering Madrid, Barcelona, Valencia and Seville) and also four from Poland (including the capital city Warsaw and regions covering the cities of Poznan, Wrocław and Katowice). Two of the remaining regions were located in Germany (Oberbayern and Düsseldorf) and one in the Netherlands (Zuidholland), while three regions were capital city regions of Greece, Hungary and Romania. The relative importance of the repair of computers and personal and household goods sector can be analysed by comparing the employment of this sector with the non-financial business economy employment.

Data sources

Coverage

The activities covered by Division 95 which forms the basis of this article are the repair and/or maintenance of:

computers and computer peripherals such as printers as well as communications equipment like fax machines and mobile phones;
home electronic goods (consumer electronics); garden equipment; clothing and footwear; furniture and furnishings; personal items such as watches and jewellery; most other consumer goods such as bicycles, toys, sports equipment and musical instruments.

This article does not cover the repair of industrial machinery and equipment, central heating and air conditioning equipment, nor hand-held power tools and it also excludes enterprises that carry out repair as a secondary activity in combination with other activities; as such, it focuses exclusively on specialist repairers.

Data sources

The analysis presented in this article is based on the main dataset for structural business statistics (SBS), size class data and regional data, all of which are published annually.

The main series provides information for each EU Member State as well as a number of non-member countries at a detailed level according to the activity classification NACE. Data are available for a wide range of variables.

In structural business statistics, size classes are generally defined by the number of persons employed. A limited set of the standard structural business statistics variables (for example, the number of enterprises, turnover, persons employed and value added) are analysed by size class, mostly down to the three-digit (group) level of NACE. The main size classes used in this article for presenting the results are:

small and medium-sized enterprises (SMEs): with 1 to 249 persons employed, further divided into:
- micro enterprises: with less than 10 persons employed;
- small enterprises: with 10 to 49 persons employed;
- medium-sized enterprises: with 50 to 249 persons employed;
large enterprises: with 250 or more persons employed.

Regional SBS data are available at NUTS levels 1 and 2 for the EU Member States, Iceland and Norway, mostly down to the two-digit (division) level of NACE. The main variable analyzed in this article is the number of persons employed. The type of statistical unit used for regional SBS data is normally the local unit, which is an enterprise or part of an enterprise situated in a geographically identified place. Local units are classified into sectors (by NACE) normally according to their own main activity, but in some EU Member States the activity code is assigned on the basis of the principal activity of the enterprise to which the local unit belongs. The main SBS data series are presented at national level only, and for this national data the statistical unit is the enterprise. It is possible for the principal activity of a local unit to differ from that of the enterprise to which it belongs. Hence, national SBS data from the main series are not necessarily directly comparable with national aggregates compiled from regional SBS.

Context

Enterprises providing services for the repair of computers and communications equipment as their principal activity may provide services directly to end clients such as households and business clients, or they may provide specialised services to intermediaries such as manufacturers or distributors. Enterprises providing repair and maintenance services for personal and household goods are generally focused on household clients.

Business clients with more complex requirements for information technology (IT) services may well receive repair and maintenance services for computers and communications equipment bundled into broader IT services (see the article on information and communication services) provided by information technology services providers (Division 62). Equally, repair and maintenance services may be provided as a secondary activity by enterprises that are principally manufacturers or distributors of computers and communications equipment.

Many repair activities, including those presented in this article — or others, such as those related to motor vehicles — often face increased demand during downturns in the overall economic cycle as households and businesses postpone purchases of new capital goods or consumer durables and semi-durables and repair existing items instead; equally demand for repair services may decrease during an upturn in the cycle.