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 291 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 225 workers, and generates revenue of about $96 million annually.
- The US household appliance manufacturing industry consists of about 290 companies that employ about 65,300 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
Recent Developments
May 24, 2024 - Industry to Return to Growth
- The household appliance manufacturing industry is expected to see negative sales growth this year, but demand is projected to rebound for the several following years. The industry’s year-over-year sales increased by 1.3% in 2022 before rising to 4.1% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to be -0.3% in 2024 before recovering to 3.2% in 2025. The industry will then see steady but mostly flat average annual growth of about 3.1% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- A recent downturn in Home Depot’s sales could signal that a decade-long surge in home improvement spending is softening, according to The Wall Street Journal. In May, Home Depot reported first-quarter revenue of $37.26 billion, down 4.2% from the same period a year earlier. The home improvement giant also revised its full-year guidance downward to a sales decline between 2% and 5% from a February estimate of flat 2024 growth. Some industry observers suggest homeowners may have completed many of their home projects during the pandemic. Consumers may also be pulling back on their spending amid growing economic uncertainty and high interest rates and inflation. Kitchen remodels are a key demand driver for new appliance purchases.
- Multifamily developers’ confidence declined in the first quarter of 2024, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) fell three points in Q1 2024 to 47 compared to the first quarter of 2023. The Multifamily Occupancy Index increased by one point to 83 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, and difficulties with getting projects approved. A large number of multifamily projects currently underway is expected to dampen starts. The NAHB expects multifamily starts in 2024 to drop by 28% as development activity declines.
- Sales of existing US homes decreased by 1.9% in April from March and were also down 1.9% year-over-year, according to the National Association of Realtors (NAR). High home prices and interest rates may be continued barriers to entry for some potential homebuyers. The median price for all types of homes in April was $407,600, up 5.7% from a year earlier. As of May 16, 2024, the 30-year fixed-rate mortgage averaged 7.02%, up from 6.39% for the same period in 2023. NAR chief economist Lawrence Yun said, "Home prices reaching a record high for the month of April is very good news for homeowners. However, the pace of price increases should taper off since more housing inventory is becoming available." Existing home sales help drive demand for household appliances. Homeowners often replace appliances before putting their house on the market, and buyers typically do remodels and upgrade appliances before moving in.
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