Household Appliance Manufacturing in Australia Industry Market Research Report now updated by IBISWorld

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The Household Appliance Manufacturing industry in Australia is challenged by high costs, particularly compared with manufacturers located in countries where labour costs are low. Over half of the total Australian market for household appliances will be satisfied by imports. Revenue will be hurt by a decline in domestic demand; competition from imports; and a decline in export sales. For these reasons, industry research firm IBISWorld has updated its report on the Household Appliance Manufacturing in Australia industry.

IBISWorld Market Research

IBISWorld Market Research

High costs and fierce import competition are threatening household appliance manufacturers

The Household Appliance Manufacturing industry in Australia is challenged by high costs, particularly compared with manufacturers located in countries where labour costs are low. The total Australian market for household appliances will be worth an estimated $5.53 billion in 2011-12, of which $3.57 billion, or 64.6%, will be satisfied by imports. According to IBISWorld industry analyst Nigel Fitzpatrick, ‘Australian manufacturers of household appliances are expected to generate revenue of $2.14 billion in 2011-12, down 4.6% compared with revenue in 2010-11.’

Industry revenue is expected to fall 7.5% per annum in the five years through 2011-12. Revenue will be hurt by a decline in domestic demand; competition from imports, which will also put downward pressure on the prices that local manufacturers can obtain for their products; and a decline in export sales. Home building activity in Australia will be soft in the five years through 2011-12, which will hinder sales of major appliances to the local building market. ‘Growth in economy-wide consumer spending will also be slow,’ adds Fitzpatrick, ‘with retail sales particularly soft.’ Closures of manufacturing capacity in Australia will contribute to the decline in revenue and exports. Industry revenue is forecast to increase marginally over the next five years to 2016-17. This growth will be due to an increase in domestic demand, partially offset by a rise in import penetration. IBISWorld forecasts that growth in consumer spending in Australia will be faster on average over the next five years than it was over the past five, and that there will be modest growth in home building activity.

The four largest companies in the Household Appliance Manufacturing industry in Australia are Electrolux Home Products, Rheem Australia, Hastie Group, and GWA Group. Market share concentration in the industry is moderate overall, but high in some segments. Imports hold a significant share in most household product segments. Import penetration is relatively low in some commercial product segments. There is only one whitegoods manufacturer in Australia: Electrolux. Fisher & Paykel closed its Australian plant in March 2009. A significant proportion of the manufacturing capacity of small appliances has moved offshore. Household air conditioners and small household appliances are largely supplied by imports, mainly sourced from Asia. The Paloma Industries Group, Rheem and GWA hold dominant shares of Australia-produced water heaters. The entry of Frigrite Refrigeration into administration in early 2011 further consolidated the commercial refrigeration market.

For more information, visit IBISWorld’s Household Appliance Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry manufacture refrigerators (including commercial refrigeration equipment), industrial, commercial or household water-heating systems, bath heaters, sink heaters, urns, household appliances or room air conditioners.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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