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Warranty Spending in U.S. Manufacturing, 2003-2005

Published by: IDC

Published: Apr. 13, 2006 - 17 Pages


Table of Contents


Manufacturing Insights Opinion

In This Report

Situation Overview

Warranty Costs

Figure: U.S. Warranty Claims and Revenue Index: Manufacturing, 1Q03-3Q05

Figure: U.S. Warranty Claims and Revenue Index: Automotive, 1Q03-3Q05

Figure: U.S. Warranty Claims and Revenue Index: Aerospace and Defense, 1Q03-3Q05

Figure: U.S. Warranty Claims and Revenue Index: High Tech, 1Q03-3Q05

Figure: U.S. Automotive Warranty Claims Spending Share of Product Sales, 1Q03-3Q05

Figure: U.S. Automotive OEM Detailed Warranty Claims Spending Share of Product Sales, 1Q03-3Q05

Figure: U.S. Aerospace and Defense Warranty Claims Spending Share of Product Sales, 1Q03-3Q05

Cost Recovery

Warranty Reserves

Review of 2005

Future Outlook

Figure: Overall Satisfaction with Warranty Performance

Figure: Challenges in Warranty Management

Figure: Warranty Management Tools Used

Figure: Key Performance Indicators

Essential Guidance

Actions to Consider

Improve Product Quality

Improve Serviceability and Service Delivery

Improve Information Visibility and Flow

Warranty Costs

For IT Vendors

Learn More

Related Research

Synopsis

Abstract

This Manufacturing Insights report provides the latest warranty spending data, results of benchmarking of warranty managers, and recommendations for manufacturers seeking to improve warranty performance.

According to Joe Barkai, program director at Manufacturing Insights, the warranty space is heating up. "Since manufacturers started reporting warranty expenses in 2003, the magnitude of the problem, which amounts to $27 billion annually, has become very apparent. CFOs and CEOs can no longer attribute warranty costs to 'cost of doing business' and must address it at the root, namely improving product quality and creative efficient and agile warranty quality chains."



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