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Freedonia Market Research Press Releases California Joins Right to Repair Movement, but Excludes Heavy Equipment – Freedonia Group Global Ana

California Joins Right to Repair Movement, but Excludes Heavy Equipment – Freedonia Group Global Analyst Weighs In

by Gleb Mytko

October 12, 2023

The adoption of right to repair regulations worldwide will have a profound impact on the operations of heavy equipment manufacturers and their aftermarket revenues."

Cleveland OH, October 12, 2023 – On October 10th, 2023, California adopted a wide-ranging “right to repair” law, becoming only the third state in the country to do so (along with Minnesota and New York). “Manufacturers must make available appropriate tools, parts, software, and documentation for seven years after production for devices priced above $100.” However, California’s Legislature added a number exemptions, including for heavy equipment, reasoning that:

“The retail distribution, sales, and rental of agricultural, construction, utility, industrial, mining, outdoor power, forestry, and lawn and garden equipment, utilizing independent dealers operating under c:ontract with the supplier vitally affects the general economy of the state, the public interest, and the public welfare.”

The “right to repair” issue has been hotly debated for years in the construction, forestry, agricultural, and mining equipment sectors, but little progress has been made. One key exception is Colorado’s “right to repair” for farmers, which was adopted in mid-2023. Many industry leaders – such as Deere – have been actively involved in this issue for years, reflecting the growing importance of service revenues and replacement part sales for manufacturers of heavy machinery.

According to Senior Global Industry Analyst, Gleb Mytko, “The adoption of right to repair regulations worldwide will have a profound impact on the operations of heavy equipment manufacturers and their aftermarket revenues."
 
For more coverage of the global off-highway equipment industries see Freedonia Group’s Global Construction Machinery, Global Agricultural Equipment, Global Mining Machinery, and Global Forestry Equipment studies, as well as the Global Off-Highway Technology study.

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