Retail Closures Trigger Decline in Service Contracts for California Industries

The Bureau of Household Goods and Services (BHGS) held a meeting on November 7, 2019, where significant discussions centered on the current state of service contracts and licensing within the household goods sector. A notable decline in service contracts was reported, attributed to the fluctuating presence of phone carriers and the closure of major retailers such as Toys R Us, Babies R Us, and Sears. This trend has raised concerns about the overall health of the industry, as many retailers have downsized or closed stores, impacting service availability.

Despite these challenges, the BHGS reported a steady issuance of licenses, averaging 103 per month for electronic and appliance repair, 137 for home furnishings, and 19 for household movers. There has been a recent uptick in licensing applications, particularly from restoration companies, indicating a potential growth area in the market. The Bureau is actively engaging with applicants, providing assistance to those navigating the licensing process.

In a move to streamline operations, the BHGS has consolidated its household mover exams into a single permit system. This change simplifies the process for movers, allowing them to adapt their business models without undergoing multiple background checks or reapplying for different types of permits. The pass rate for the new consolidated exam has improved significantly, rising from 63% to over 80%, suggesting that more individuals are entering the industry with the necessary compliance.

The Bureau also shared positive financial news, reporting $1.76 million collected in quarterly fees for the first two quarters of the year, with projections indicating they are on track to meet their revenue goals. This financial stability is crucial for the Bureau as it continues to support the industry and ensure compliance among service providers.

Overall, the discussions highlighted both the challenges and opportunities facing the household goods sector, with a focus on adapting to market changes and improving service delivery for California residents. The BHGS remains committed to fostering a compliant and thriving industry that meets the needs of the community.