|Last Quarterly Update:||10/31/2016|
|SIC Codes:||3631, 3632, 3633, 3634, 3635, 3639|
|Industry Overview||Trends & Challenges||Industry Forecast|
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Companies in this industry manufacture large appliances, such as stoves, ovens, refrigerators, and washers and dryers, as well as small appliances, including vacuum cleaners, fans, humidifiers and dehumidifiers, and toaster ovens. Major companies include US-based Whirlpool, along with BSH Bosch (Germany), Electrolux (Sweden), Haier and Haier-owned GE Appliances (China), and LG Electronics (South Korea).
Worldwide shipments of household appliances exceed 580 million units annually and are forecast to reach 700 million units by 2017, according to IHS. The most growth is projected to come from China, India, and Turkey.
The US household appliance manufacturing industry consists of about 200 companies with combined annual revenue of about $20 billion.
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% of revenue.
Imports, primarily from China and Mexico, are a major source of competition for US household appliance manufacturers, accounting for about 60% of the US market. US exports of household appliances, which account for about one-fourth of production, go mainly to Canada and Mexico.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are refrigerators and freezers (about 20% of US ...
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