Household Appliance Manufacturing Industry Profile

The US household appliance manufacturing industry consists of about 300 companies with combined annual revenue of more than $20 billion. Major companies include GE, Whirlpool (owner of the Maytag brand, among others), and the US-based operations of Electrolux. The industry is highly concentrated: the top 20 companies generate about 85 percent of revenue.

The global household manufacturing industry generates about $160 billion in revenues. The European Union accounts for around $73 billion; China for about $13 billion. Top international manufacturers include Electrolux AB (Sweden), BSH Bosch (Germany), LG Electronics (South Korea), and Haier (China).

COMPETITIVE LANDSCAPE

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. Imports, primarily from Mexico and China, are a major source of competition for US household appliance manufacturers, accounting for about 45 percent of the US market. US exports of household appliances are relatively small and go mainly to Canada and Mexico.The industry is capital-intensive: average annual revenue per employee is about $310,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories are refrigerators and freezers (about 25 percent of industry revenue); washers and dryers (20 percent); and ovens and ranges (20 percent). Other products include dishwashers, fans, ...