Household Appliance Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 280 household appliance manufacturers in the US produce both major appliances and small electrical appliances for home use by consumers. In the major appliance category, primary products include cooking equipment (stoves, ovens, ranges), laundry equipment, refrigerators, freezers, dishwashers, and water heaters. Small electrical appliances encompass a wide range of products, including can openers, food preparation equipment, fans, hair dryers, and vacuum cleaners.

Dependence on Construction Activity

New residential construction and people moving from one house to another drive demand for household appliances.

Demand for Connected Appliances

Manufacturers are responding to rising consumer interest in appliances that feature internet connectivity, or smart appliances.

Industry size & Structure

The average US household appliance manufacturer operates out of a single location, employs about 250 workers, and generates revenue of about $100 million annually.

    • The US household appliance manufacturing industry consists of about 280 companies that employ about 70,000 workers and generate about $28 billion annually.
    • The industry is highly concentrated; the top 20 companies account for about 93% of industry revenue.
    • Major companies include Bosch, Electrolux, Haier, LG, Samsung, and Whirlpool. Of these, only Whirlpool is headquartered in the US, but all have US manufacturing facilities. Whirlpool, in turn, has substantial operations outside the US. Supply chains for household appliances typically span multiple countries.
    • The major household appliance manufacturing segment accounts for 84% of industry revenue and 82% of industry employment.
                                    Industry Forecast
                                    Household Appliance Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Apr 25, 2023 - Remodeling Spending to Slow
                                    • The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the first quarter of 2023 was 70, up 1 point from the fourth quarter of 2022, according to an April report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the first quarter, the Current Conditions Index portion of the RMI fell two points from Q4 2022 to 75. The Future Indicators Index component of the RMI rose two points to 64 over the same period. The NAHB noted that although materials shortages and high interest rates continue to pose challenges, remodeling growth will continue in 2023 but at a slower pace than in 2022. Kitchen remodels are an important driver of appliance spending.
                                    • US retail sales fell 1% in March as US consumers pulled back on expensive purchases, such as appliances, amid high interest rates and inflation, according to The Wall Street Journal. Retail sales at electronics and appliance stores fell 2.1% in March compared to February. The Federal Reserve’s interest rate hikes are intended to reduce inflation by slowing consumer spending.
                                    • US mortgage applications fell 8.8% for the week ending April 14, 2023, marking the fifth straight week of increases, according to the Mortgage Bankers Association (MBA). The average 30-year fixed-rate mortgage rose 13 basis points to 6.43%. Seasonally adjusted purchasing activity decreased 10% for the week ending April 14th compared to the prior week, and the unadjusted purchase index was down 36% compared to a year earlier. MBA Vice President and Chief Economist Joel Kan said, “Affordability challenges persist, and there is limited for-sale inventory in many markets across the country, so buyers remain selective on when they act. The 10-percent drop in FHA purchase applications, and the increase in the average purchase loan size to its highest level in a month, are other indications that first-time buyers have pulled back.”
                                    • The number of building permits issued for single-family, privately-owned housing units decreased 8.8% month over month and was down 24.8% year over year in March 2023. Single-family housing starts fell 0.8% month over month and decreased 17.2% year over year in March. Housing completions dropped 0.6% month over month but rose 12.9% year over year in March. The drop in March housing starts was mainly due to a 6.7% monthly decline in multifamily; single-family starts rose 2.7%. With tight overall housing inventories, especially for existing homes, homebuilders have an opportunity to meet housing demand with new construction, according to Bloomberg. However, headwinds include elevated mortgage rates and tightening lending standards.
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