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 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

                                    Recent Developments

                                    Nov 29, 2022 - Amid Weak Demand, Appliance Manufacturers Make Cuts
                                    • Appliance maker Whirlpool said that it cut home appliance production by more than a third during its most recent quarter, according to The Wall Street Journal. The firm also reduced its profit outlook for 2022 by half amid rising costs and weakening consumer demand brought on by inflation. Whirlpool’s North American sales dipped 7.7% in Q3 compared to the same period in 2021. In response to weaker demand, Sweden-based appliance firm Electrolux recently announced it planned to eliminate between 3,500 to 4,000 jobs companywide. Electrolux posted a third-quarter operating loss of $35 million, which was primarily driven by a softening of the North American market as consumers pull back on big-ticket spending.
                                    • Building permits, housing starts, and housing completions are indicators of future appliance demand. The number of building permits issued for privately-owned housing units decreased 2.4% month over month and declined 10.1 year over year in October 2022. Housing starts fell 4.2% month over month and decreased 8.8% year over year in October. Housing completions fell 6.4% month over month but rose 6.6% year over year in October.
                                    • US retail sales at electronics and appliance stores declined 12.3% on an unadjusted basis in October 2022 compared to the same month a year earlier. Seasonally adjusted electronics and appliance store sales fell 0.3% in October compared to September.
                                    • The number of household formations, a demand driver for appliances, rose 0.4% to 128,667 in September 2022 compared to the previous month, according to the Federal Reserve Bank of St. Louis (FRED). On a year-over-year basis, housing formations in September were up nearly 1%.
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