Warranty: Service Industry Buzz
Appliance & Building Material Warranties
The economic downturn that started with the homebuilders is showing its effects on the makers of appliances, fixtures, tools, furniture and building materials. But some segments haven't seen very big recent declines in warranty expenses, and some companies have actually seen their warranty costs rise.
Of the three major sectors in the warranty world -- vehicles, electronics, and buildings -- the latter is by far the smallest. While almost half of last year's $28.7 billion in warranty claims arose from the sale of automobiles, heavy equipment, boats and aircraft, and while more than a third came from computers, telecom, medical equipment, consumer electronics and other high-tech lines of business, only 14.4% came from the building trades.