How Device Hoarding is Hurting U.S. Economic Growth
New York, Sunday, 23 November 2025.
Americans are keeping devices longer, leading to outdated technology that reduces productivity and innovation, costing the U.S. economy significantly.
Impact of Device Hoarding on Productivity
The trend of holding onto electronic devices for extended periods is posing a significant challenge to productivity in the U.S. economy. According to recent studies, the average American retains their smartphone for about 29 months, a notable increase from 22 months in 2016 [1]. This delay in upgrading technology contributes to a decline in workplace productivity, estimated at around 0.33% per year for each additional year that companies postpone equipment upgrades [1]. Such productivity losses highlight the critical need for timely modernization of technology, especially as the U.S. strives to maintain its competitive edge globally [2].
Economic Implications of Outdated Technology
The economic repercussions of device hoarding extend beyond individual productivity losses, affecting broader economic growth. As devices age, they contribute to a wider productivity gap between the U.S. and other leading economies such as Germany, where the gap could have been reduced by over 100% if outdated technology were addressed since 2000 [1]. The Federal Reserve has underscored the urgency of addressing these inefficiencies to bolster the economy’s overall performance [2].
Solutions and Future Outlook
Experts suggest that adopting modular and repairable technology designs could help mitigate the negative impacts of device hoarding by extending the utility of devices and facilitating easier upgrades and repairs [2]. The growing refurbished electronics market, projected to expand at a compound annual growth rate of 10.3% to reach over USD 118.61 billion by 2032, presents a viable solution for maintaining productivity without the need for constant new purchases [2]. This approach aligns with emerging circular economy models that aim to reduce waste and enhance sustainability.
Policy and Industry Adaptations
To effectively address the challenges posed by device hoarding, both policy and industry practices need to evolve. Regulatory frameworks like the EU’s Circular Economy Action Plan and state-level e-waste laws in the U.S. are creating a conducive environment for investments in technology modernization [2]. Such initiatives are crucial in ensuring that the U.S. economy does not lose its competitive advantage due to technological stagnation. The future of economic growth will depend on the ability of businesses and policymakers to integrate these innovations into their strategies.