Washer & Dryer Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

High unemployment and stagnant income growth from the recession resulted in consumers becoming less willing to purchase durable products like washers and dryers, which constrained industry demand; during the next five years, disposable income and housing starts are projected to grow strongly, fueling consumer demand for washers and dryers. For these reasons, industry research firm IBISWorld has added a report on the Washer & Dryer Manufacturing industry to its growing industry report collection.

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Rising incomes and housing starts will fuel consumer demand for washers and dryers

Los Angeles, CA (PRWEB) June 20, 2013

The Washer and Dryer Manufacturing industry has contracted over the past five years. Demand for washers and dryers is directly tied to the number of new households formed each year. As such, domestic demand for industry products contracted in 2008 and 2009 due to the housing market collapsing following the subprime mortgage crisis. High unemployment from the recession resulted in stagnant disposable income growth and deteriorating consumer confidence in the economy. Consumers became less willing to purchase durable products like washers and dryers, which constrained industry demand. As a result, in the five years to 2013, industry revenue is expected to fall at an annualized rate of 3.6% to $3.7 billion, says IBISWorld industry analyst David Yang. In 2013, revenue is estimated to increase 1.6% as the housing market recovers. Industry firms have faced heavy competition from imports over the past five years, which has pressured profitability. Although imports fell at an annualized rate of 0.4% over the period, imports' share of domestic demand has increased. With stagnant disposable incomes, consumers were especially attracted to cheap imported washers and dryers over the past five years. In response to import competition and poor domestic demand, industry firms restructured manufacturing operations. Larger firms shut down facilities, while smaller firms exited this industry. In the five years to 2013, the number of enterprises is expected to fall an average of 12.9% per year, while employment is estimated to decrease at an annualized rate of 6.7%. Falling wage costs and industry consolidation is expected to boost profit margins over the period, but the majority of the growth is a recovery from the recession, continues Yang.

The Washer and Dryer Manufacturing industry exhibits a high degree of market share concentration. The top four companies are General Electric Company, Whirlpool Corporation, AB Electrolux and LG Electronics. All account for large proportions of revenue and are expected to continue doing so. The industry became increasingly concentrated in 2006 when Whirlpool acquired one of its key competitors, Maytag Corporation. Consolidation has led market share concentration to increase over the past five years. During the period, smaller players left the industry because they were unable to compete with large firms that operated with economies of scale, allowing them to price their products more competitively. Barriers to entry are high in the industry, so it is unlikely that new operators will enter and attempt to capture market share from existing players.

In the five years to 2018, disposable income and housing starts are projected to grow strongly, fueling consumer demand for washers and dryers. However, the dollar will appreciate, boosting import growth. The price of plastic materials, a major input cost for industry operators, is also expected to increase, which will put pressure on profitability. Nevertheless, improving manufacturing efficiency will slightly bolster profit margins over the next five years. For more information, visit IBISWorld’s Washer and Dryer Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry manufacture household-type clothes washers and dryers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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.

Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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  • Gavin Smith
    IBISWorld
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