11.19.2008 — Consumer electronics remain in strong demand for contract labor in the third quarter, according to OnForce, an online marketplace for IT and CE professionals.

The OnForce Services Marketplace Index (OSMI) (pdf) for the third quarter shows that CE maintained its position as one of the three highest volume service categories, as installations and maintenance were required for higher-end electronics such as home networking, media servers and HDTVs.

“The Consumer Electronics Association recently projected that CE sales will grow 3.5 percent this holiday season, despite the down economy, so we know that consumers will still make major CE purchases that require professional installation,” says OnForce CEO Peter Cannone.

“Many OEMs, VARs and retailers have yet to figure out the last mile of the consumer electronics sale — expert installation and support.

"This report helps show IT and CE companies how they can make on-site services a profitable part of their business and increase their customers’ satisfaction.”

Other highlights from the report:

• POS was the fastest-growing category, climbing two spots from Q2
• Desktop computers was the highest volume category for the third consecutive quarter
• Security, peripherals and consumer electronics were the most expensive service categories
• Laptops and networking were the least expensive categories

“Retailers leverage the summer and fall months to prepare for the holiday season and update their technology infrastructure and systems,” says Cannone.

“The OnForce marketplace observed these trends and, in the third quarter, retailers focused on their in-store systems. This creates a lucrative opportunity for those VARs that service POS technologies.”

Hartford, Conn. is the city with the highest average costs for IT and CE service requests. Houston and New York City experienced the highest increases in volume.