Frozen out: Revenue declines as firms fail to compete with lower priced imports

The Household Appliance Manufacturing industry has struggled to compete in an increasingly import-dominated market over the past five years. Strong price-based competition from low-cost producers across Asia, coupled with mixed domestic demand, has negatively affected the industry's performance. Overall, revenue is expected to decline at an annualised 2.8% over the five years through 2018-19, to $1.9 billion. This trend has forced several enterprises to leave the industry, with Electrolux ceasing local refrigeration manufacturing in April 2016.Declining industry revenue has been accompanied by lower profit margins over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Difficult operating conditions have led to profit falls over the past five years
  • Enterprise numbers have fallen as domestic firms have moved manufacturing operations offshore
  • Profit is forecast to decline as import competition continues to dominate the local market
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is a decline stage of its economic life cycle due to large revenue falls in the past five years, a declining number of industry players, and technological change based on improving an existing and clearly segmented product group. Over the past five years, industry revenue has declined as import competition intensified and as more businesses closed down or moved their production offshore to capture greater profit margins through low wage costs.Industry value-added, which is used to measure an industry's contribution to the overall economy, is projected to decline by an annualised 3.7% over the 10 years through 2023-24. This is in contrast to Australia's GDP growth over the same years at a forecast 2.7%, ...purchase to read more.

    Additional Insights for the Household Appliance Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Household Appliance Manufacturing are:

  • Establishment of brand names
  • Development of new products
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Value of merchandise trade imports and Trade-weighted index in the Household Appliance Manufacturing industry impact industry performance..

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    What's in this report

    What is the Household Appliance Manufacturing Industry?

    Industry firms manufacture household whitegoods and other domestic appliances. Whitegoods include household refrigerators, freezers, ovens, stoves, range hoods, dishwashers, washing machines, clothes dryers, microwave ovens, barbecues and food waste disposal units. Other domestic appliances include household air conditioners, heaters, electric blankets, fans, electric toothbrushes, hot-water systems, sewing machines, kettles, toasters and vacuum heaters.

    Industry Products
  • Kitchen whitegoods
  • Laundry whitegoods
  • Hot-water systems
  • Heating and air conditioning units
  • Small and other appliances
  • Barbecues
  • Household appliance parts and compressors
  • Industry Activities
  • Domestic refrigerator and freezer
  • Washing machine and clothes dryer
  • Stove, oven, microwave oven and range hood
  • Dishwasher, food waste disposal unit and barbecue
  • Household heater, space heater and air conditioner
  • Kettle, toaster, fan and hair dryer
  • Electric blanket and electric toothbrush
  • Sewing machine
  • Vacuum cleaner
  • Other domestic appliance and whitegoods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of merchandise trade imports
  • Trade-weighted index
  • Consumer sentiment index
  • Household consumption expenditure
  • Capital expenditure on private dwellings
  • Demand from domestic appliance retailing

  • Current Performance
  • Industry revenue trends
  • Enterprises and profit fall
  • Import competition intensifies
  • Chart: Revenue Growth

  • Industry Outlook
  • Import penetration
  • Structural manufacturing change
  • Future retail strength
  • Table: Household Appliance Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Household Appliance Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Household Appliance Wholesaling
  • Domestic Appliance Retailing

  • Key Selling Industries
  • Aluminium Door and Window Manufacturing
  • Copper, Silver, Lead and Zinc Smelting and Refining
  • Gold and Other Non-Ferrous Metal Processing
  • Plastic Bottle Manufacturing
  • Plastic Pipe and Plastic Packaging Material Manufacturing
  • Steel Pipe and Tube Manufacturing
  • Structural Steel Fabricating

  • Products & Services
  • Heating and air conditioning units
  • Hot-water systems
  • Barbecues
  • Kitchen whitegoods
  • Small and other appliances
  • Household appliance parts and compressors
  • Laundry whitegoods
  • Chart: Household Appliance Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Trade service providers
  • Consumers
  • Export markets
  • Chart: Major Market Segmentation for the Household Appliance Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Household Appliance Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Household Appliance Manufacturing Industry

  • Industry Globalization
    Rheem Australia Pty Limited, Electrolux Home Products Pty Limited,
  • Table: Rheem Australia Pty Limited - financial performance
  • Table: Electrolux Home Products Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Household Appliance Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Household Appliance Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Small Appliance
  • Appliances, usually handheld, that accomplish some routine housekeeping or personal care task.
  • Space Heater
  • A heater consisting of a self-contained (usually portable) unit, used to warm a room.
  • Whitegoods
  • A large kitchen or laundry appliance, such as fridges, freezers, washing machines, and clothes dryers. These goods were traditionally white, but are now also popular in a stainless steel finish.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Household Appliance Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Household Appliance Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Household Appliance Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Household Appliance Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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