|Last Quarterly Update:||11/11/2013|
|SIC Codes:||3631, 3632, 3633, 3634, 3635, 3639|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry manufacture large appliances such as stoves, ovens, refrigerators, and washers and dryers, and small appliances including vacuum cleaners, fans, humidifiers, and dehumidifiers, and toaster ovens. Major companies include US-based GE and Whirlpool (owner of the Maytag brand, among others), and Electrolux AB (Sweden), BSH Bosch (Germany), LG Electronics (South Korea), and Haier (China).
The global household manufacturing industry generates about $160 billion in annual revenue. The European Union accounts for about $73 billion; China for about $13 billion.
The US household appliance manufacturing industry consists of about 300 companies with combined annual revenue of about $18 billion. Competition from low-cost imports is a major challenge.
Demand is driven by growth in consumer income and by home sales. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract. The US industry is highly concentrated: the top 20 companies generate about 90 percent of revenue.
Imports, primarily from Mexico and China, are a major source of competition for US household appliance manufacturers, accounting for more than 50 percent of the US market. US exports of household appliances, which account for about one-fourth of production, go mainly to Canada and Mexico.
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