Retail Holdings - Competitors

Retail Holdings Competition

Now Viewing Retail Holdings's competition in: Household Appliance Manufacture (primary)

Recent Developments

GE to Exit Appliance Business - GE plans to spin off or sell its century-old appliance division to focus on long-cycle, global businesses like aircraft engines and commercial finance. GE claims that because its appliance unit operates chiefly in the US, its fortunes are too closely tied to the ups and downs of the US economy. Sale of GE's appliance division is likely to significantly alter the competitive environment of the global appliance industry. Asian appliance makers might be interested in the business to gain better footing in the US through a recognized American brand.

Appliance Production Decreases - US production of household appliances decreased 12.9 percent in April 2008 compared to a year earlier. Year over year, production has been declining since 2005. Sales of existing homes and new residential construction are drivers of appliance sales. Existing home sales were down 19.3 percent in March 2008 compared to a year earlier; spending on new residential construction was down 19.7 percent.

Raw Materials Prices Rise - Producer prices for steel, a chief raw material used in appliance manufacture, increased 17.5 percent in April 2008 over the prior year, and appliance prices rose only 0.9 percent. The disparity between the rise in raw material prices and appliance producer prices suggests that appliance makers are reluctant to raise prices in the face of falling demand caused by the ongoing softness of the US market.

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 percent between 2007 and 2012.

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.