Hardware Manufacturing — Business Survival Rate
An estimated 74% of hardware manufacturing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 5.9%.
Is Hardware Manufacturing a Good Business to Start?
With a 74% five-year survival rate, hardware manufacturing has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.
The annual exit rate of 5.9% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+2.0 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 30,224 workers across 458 firms.
Want to know how much hardware manufacturing businesses actually make?
See full revenue benchmarks for Hardware Manufacturing →Frequently Asked Questions
- What percentage of hardware manufacturing businesses fail?
- Approximately 26% of hardware manufacturing businesses fail within their first 5 years. The annual closure rate is 5.9%, with 24 firms closing permanently in 2023.
- Is the hardware manufacturing industry growing or shrinking?
- The hardware manufacturing industry is currently stable with a net job creation rate of -0.1% per year. New businesses are entering at 7.9% while 5.9% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.