SIC 3633 Household Laundry Equipment

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• Types of Products.
• BACKGROUND AND DEVELOPMENT.
• Federal Regulation.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• WORKFORCE.
• AMERICA AND THE WORLD.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 3633

This classification covers establishments primarily engaged in manufacturing laundry equipment, such as washing machines, dryers, and ironers, for household use, including coin-operated equipment. Establishments primarily engaged in manufacturing commercial laundry equipment are classified in SIC 3582: Commercial Laundry, Dry cleaning, and Pressing Machines, while those manufacturing portable electric irons are classified in SIC 3634: Electric Housewares and Fans.

NAICS CODE(S)

335224

Household Laundry Equipment Manufacturing

INDUSTRY SNAPSHOT

Although mechanical washing contraptions existed before the start of the twentieth century, only since the 1950s has gas and electric-powered laundry equipment achieved widespread use. By the early 1990s more than 70 percent of all U.S. homes had both a washer and a dryer. In 2003 laundry equipment was the second largest home appliance market, following refrigeration, with $4.9 billion in shipped products. Eighteen establishments operated in this industry, and three companies—Whirlpool Corporation, General Electric, and Maytag Corporation—led manufacturing and sales.

ORGANIZATION AND STRUCTURE

Household laundry equipment represented about 17 percent of the overall U.S. household appliance industry in the 1990s. Although ironers and mangles, or pressing machines, account for a small portion of industry sales, washers and dryers made up the lion's share of production.

Nearly 80 percent of all household laundry equipment is purchased by individuals for home use. An additional 6 percent of industry output is consumed by laundromats, dry cleaners, and other services that use domestic laundry equipment. The remainder of the U.S. market is comprised of state, local, and federal government institutions, such as the armed forces and prisons.

The market for first-time purchasers of washers and dryers is relatively saturated. As a result, the industry is highly dependent upon sales of replacement appliances. Most laundry equipment has a life span of 10 to 12 years. However, several factors may influence the replacement rate of washers and dryers. An increase in sales of existing homes, for example, boosts replacements because new occupants are more likely to buy new appliances. Likewise, heightened remodeling activity also spurs replacements.

Changes in home trends also may spawn premature replacements. For instance, as laundry equipment was increasingly moved out of basements and closer to living areas in the 1980s, the need for quieter and more attractive washers and dryers caused an influx of consumers to upgrade. Increases in repair costs in relation to price of new units also can shorten replacement cycles. Finally, because appliances are discretionary purchases that can be postponed, industry revenues are closely tied to the health of the overall economy.

Types of Products

The three major household laundry product categories were electric washing machines, electric dryers, and gas dryers. Washers are of two types: top-load and front-load. Top-load washers have an agitator in the center of the wash tub that thrashes the water and the fabric. Front-load, or tumble-type, washers lift and drop the laundry into the wash water as the tub spins. Both washer types wring out excess water by spinning.

Although many top-loading machines are easier to access, tumble-type washers require less water and detergent to clean a load of laundry. Both types of washers are differentiated primarily by their features, which include washing actions, capacity, water temperature combinations, water levels, and noise levels. Most top-load washers range in price from $400 to $550, while front-load machines usually cost an additional $100.

Dryers are basically revolving drums which tumble clothes through heated air. Different features and product quality result in a price range of $400 to $800. More expensive dryers...