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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

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

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

Industry Profile Excerpts

Industry Overview

The 270 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 241 workers, and generates revenue of about $95 million annually.

    • The US household appliance manufacturing industry consists of about 270 companies that employ about 65,000 workers and generate about $25 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

                                    Coronavirus Update

                                    Apr 19, 2022 - Supply Chain Constraints Expected To Continue
                                    • Marc Bitzer, CEO of appliance manufacturer Whirlpool, said in January that the company expects supply chain constraints to persist throughout 2022. Bitzer cited continuing labor shortages, component issues, chip issues, and transportation delays, both abroad and domestically, as key drivers of the constraints.
                                    • Domestic household appliance manufacturers may benefit from supply chain issues that are creating more uncertainty with each new spike in COVID-19 cases. As of April 11, 87 of China’s 100 largest cities were in some form of lockdown, according to economic research firm Gavekal Dragonomics, which has been tracking lockdowns during the pandemic. According to The New York Times, the restrictions were a drag on China’s industrial output in March, and April’s results are expected to be worse.
                                    • Seasonally adjusted sales at electronics and appliance stores increased 3.3% in value month over month in March 2022, according to the US Census Bureau. Unadjusted sales declined 4% in value in the first three months of 2022 compared to the same period in 2021.
                                    • Appliance manufacturers have been putting more focus on hygiene since the beginning of the coronavirus pandemic. Manufacturers including LG Electronics and Whirlpool claim that some of their products actively remove germs and allergens from their surfaces. Some of LG’s new refrigerators, for example, come with sterilizing ultraviolet lights fitted inside them. Whirlpool has launched a new line of washing machines that come with built-in heating units that are designed to kill germs in laundry, according to The Wall Street Journal. “All of our product development now is being done through the lens of hygiene,” Mark Choe, a senior vice president at Samsung’s digital appliances business division, told The Wall Street Journal.
                                    • New single-family home sales decreased 2% month over month and declined 6.2% year over year in February 2022, according to the US Department of Commerce. Sales of previously-owned homes fell 7.2% month over month and 2.4% year over year in February 2022, according to the National Association of Realtors (NAR).
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