Industrial Equipment Repair & Rebuilding

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Startup Cost
$60,000-$300,000
Difficulty
Advanced
Time to Profit
12-24 months
Profit Potential
$90,000-$450,000/year

Overview

Industrial equipment repair shops rebuild and repair industrial machinery, motors, pumps, hydraulics, and manufacturing equipment for factories and industrial facilities.

With manufacturers needing equipment maintenance and preferring rebuilding over replacement, repair shops generate revenue of $180,000-$550,000 annually with profit margins of 35-50% through repair services and rebuilt equipment sales.

The business requires shop facility, machining and repair equipment, diagnostic tools, parts inventory, and skilled technicians.

Services include equipment diagnostics, motor and pump rebuilding, hydraulic system repair, CNC machine repair, preventive maintenance, and emergency service.

Pricing typically $85-$150 per hour plus parts.

Success factors include troubleshooting expertise, quality rebuilding, fast turnaround for production equipment, and parts sourcing.

Common clients include manufacturers, food processors, mining operations, and industrial facilities.

Many shops specialize in specific equipment types (motors, pumps, CNC, hydraulics) or industries.

The business often includes field service for on-site repairs and maintenance contracts.

Marketing focuses on relationships with maintenance managers, demonstrating expertise, and emphasizing cost savings versus equipment replacement.

With manufacturing continuing and equipment costs high in 2025, industrial repair offers opportunities for skilled technicians who can keep production equipment running reliably.

Required Skills

  • Industrial equipment troubleshooting and diagnostics
  • Mechanical and electrical repair
  • Hydraulic and pneumatic systems
  • Machining and fabrication for repairs
  • Equipment specifications and sourcing
  • Safety and lockout/tagout procedures

Pros and Cons

Pros

  • Essential manufacturing service
  • Cost-effective alternative to replacement
  • Recurring maintenance contracts
  • Emergency service premium pricing
  • Diverse equipment and industries

Cons

  • Specialized technical expertise required
  • Equipment and tools investment
  • Emergency service demands
  • Parts sourcing challenges
  • Safety risks working with industrial equipment

How to Get Started

  1. Gain industrial maintenance expertise and certifications
  2. Set up shop with repair and diagnostic equipment
  3. Build parts supplier relationships
  4. Market to manufacturers and industrial facilities
  5. Start with equipment specialization
  6. Develop maintenance contract base
  7. Add technicians and expand capabilities

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