Watch, Clock, and Jewelry Repair

SIC 7631
WATCH, CLOCK, AND JEWELRY REPAIR

This category covers businesses that primarily repair watches, clocks, or jewelry. Companies that primarily assemble watches from purchased parts are in SIC 3873: Watches, Clocks, Clockwork Operated Devices, and Parts.

NAICS Code(s)

811490 (Other Personal and Household Goods Repair and Maintenance)

The watch, clock, and jewelry repair industry consists of a few large industry leaders and many small local shops. Most watch, clock, and jewelry repair shops are small, privately-owned firms, often affiliated with local jewelry retailers. Large watch, clock, and jewelry makers may also have divisions devoted solely to repairing their products.

Watch, clock, and jewelry repair firms fix malfunctioning and broken timepieces and jewelry. The industry's repair technicians (called horologists) replace broken or worn parts mainly with factory replacement parts. Technicians are able to repair both older mechanical and newer battery-operated quartz timepieces. When working with older timepieces, however, technicians often make replacement parts themselves.

Approximately 80 percent of the watch repairers in the United States are self-employed. They operate their own repair shops or have contracts with jewelry retailers and department stores. Many new horologists found jobs with jewelry retail stores or department stores. Furthermore, many large clock, watch, and jewelry makers employed horologists in their repair departments. Most Repair technicians were members of the American Watchmakers Institute, the national watch, clock, and jewelry repair trade organization.

New York City-based SMH Inc. led the industry with sales of $200 million for 1997, according to the most recent results available from Infotrac databases. That year, SMH entered into a joint agreement with Calvin Klein to manufacture CK branded watches. Second in the industry, Mayor's Jewelers Inc. of Sunrise, Florida was bought out in early 1998 by Jann Bell Marketing, which decided to retain the "Mayor" name for its subsidiary. Mayor's generated $120 million in the year before the buyout, and sales rose to $140 million for 1998, the year of the buyout.

Two Toledo companies placed third and fourth in the industry. Peoples Jewelry Company Inc. garnered revenues of $78 million for its fiscal year ended September 30, 1999, and Time Service Inc. generated sales of $20 million for its fiscal year ended August 31, 1999. S. Joseph and Sons Inc. of Des Moines, Iowa rounded out the top five industry leaders, with sales of $16.5 million for its fiscal year ended January 31, 1999.

In the early 1990s, the United States had a shortage of qualified repair technicians. Analysts estimated that nine out of ten Americans owned watches, and watch and jewelry sales rose consistently throughout the 1990s. Widespread sales of inexpensive electronic watches reduced business for repair shops, because these watches are cheaper to replace than repair. The decrease, however, has been offset by higher replacement battery sales.

Watch, clock, and jewelry repairers trained for one or two years at vocational schools, technical institutes, or junior colleges. Some states require repair technicians to be licensed. Repairers generally worked 40 to 50 hours per week and earned between $200 and $400 per week. Self-employed repairers generally worked more hours and had larger salaries.

According to U.S. government statistics, there were 1,662 businesses in this category in 1992, a tiny increase from the 1,661 in 1987. Total industry sales for 1992 were $274 million, an 18.8 percent increase from the $231 million in sales for 1987. In 1992, the industry employed 5,141 workers, with a total payroll of $78 million. According to Dun & Bradstreet's Industry Norms, the average watch, clock, and jewelry repair firm had total assets of $94,072, net sales of $199,043, and net profits after taxes of $21,298 in 1992.