Haier Electronics - Competitors

Haier Electronics Competition

Now Viewing Haier Electronics's competition in: Household Appliance Manufacture (primary)

Recent Developments

ENERGY STAR Program Under Fire - The federal government's ENERGY STAR program has lax standards and outdated testing protocols that could be allowing appliances on the energy-efficient list that don't belong, according to Consumer Reports. ENERGY STAR, a voluntary program that covers 50 product categories, is administered by the Department of Energy (DOE) and EPA. To qualify, appliances must use 10 to 25 percent less energy than the amount the DOE allows. EPA officials call the findings misleading.

Fewer New Home Sales Equals Fewer Appliance Sales - New single family home sales, a key driver of appliance sales, were down 35.3 percent in July 2008 from year-ago levels. Many builders are lowering home prices and offering more incentives to attract buyers and reduce the surplus of unsold properties. However, stricter lending practices and rising mortgage rates may prevent sales from improving much in the months ahead.

Freezer Sales Heating Up - US shoppers bought more than 1.1 million freezers during the first six months of 2008, an increase of about 7 percent from a year earlier, according to NPD Group. Industry experts predict that this upward trend will continue because consumers are buying groceries in bulk, stocking up on sale items, freezing leftovers to combat escalating grocery prices, and bundling shopping trips to conserve gas. About half of all American households have a chest or upright freezer in addition to their main refrigerator-freezer.

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 industry is fairly automated: annual revenue per employee is close to $250,000.

Full Industry Overview For Household Appliance Manufacture

Household Appliance Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US household appliance manufacturing is forecast to decrease at an annual compounded rate of 2.2 percent between 2008 and 2013.

Household Appliance Manufacturing Growth Low

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.