Household Appliance Manufacturing

Household Appliance Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture small electric appliances as well as other major household appliances. Major companies include BSH Hausgeräte (Germany), Electrolux (Sweden), Haier Electronics and GE Appliances (both based in China), LG Electronics (South Korea), and Whirlpool (US).

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. The US industry is highly concentrated: the top 50 companies generate over 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories are refrigerators and freezers (30%), ovens and ranges (30%), as well as dishwashers (20%), small electric appliances (10%), and water heaters (10%). Other leading sources of revenue include fans, vacuum cleaners, and personal care appliances.