Frozen out: Strong import competition has caused operators to lose domestic market share

The total UK market for electrical appliances is estimated to be worth £4.6 billion in 2017-18, of which an estimated 72.4% is projected to be satisfied by imports. Exports are forecast to generate 34% of industry revenue in 2017-18. Over the five years through 2017-18, revenue is estimated to increase at a compound annual rate of 1%. Improving economic conditions allowed Britons to increase spending on electrical appliances during the first three years of the period. The housing market also improved during these years, supported by government initiatives, and increased domestic demand, especially for major appliances such as washing machines, which are more likely to be purchased for new homes or when renovations are being carried more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The strong performance of the housing market has supported demand and revenue growth
  • The Help to Buy scheme supported residential property transactions, which positively influence the industry
  • Household spending pressures are expected to negatively affect demand and limit industry expansion
  • Industry Report - Industry Analysis Chapter

    Foreign-owned companies dominate the domestic market for electrical appliances as imports satisfy a large portion of domestic demand. Industry operators tend to specialise in manufacturing a narrow range of products and mainly compete on quality rather than on price. Industry revenue is expected to increase at a compound annual rate of 1% over the five years through 2017-18. Rebounding economic conditions and improvements in the housing market during the first three years of the period expanded domestic demand for household electrical appliances. However, the benefits to the industry were limited as import competition intensified and foreign firms captured domestic market share. Meanwhile, exports grew over the period, contributing towards industry revenue expansion...purchase to read more.

    Additional Insights for the Electrical Appliance Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electrical Appliance Manufacturing Industry are

  • Establishment of brand names
  • Development of new products
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Demand from residential building construction in the Electrical Appliance Manufacturing industry impact industry performance..

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    What's in this report

    What is the Electrical Appliance Manufacturing Industry?

    This industry includes operators that manufacture electrical household appliances. These include refrigerators, freezers, dishwashers, cookers and vacuum cleaners. Players also manufacture electrothermal appliances such as electric water heaters and electric blankets. The manufacture of commercial electric appliances is excluded from the industry. Room air conditioners, attic fans, permanently mounted space heaters and sewing machines are also not included in the industry.

    Industry Products
  • White goods
  • Water heaters
  • Space heaters and other heaters
  • Fans
  • Other products and parts
  • Industry Activities
  • Manufacturing electric refrigerators, freezers and dishwashers
  • Manufacturing washing and drying machines, ovens and cookers
  • Manufacturing electric water heaters
  • Manufacturing electric space heaters and portable household fans
  • Manufacturing vacuum cleaners and electric floor polishers
  • Manufacturing electric dryers, combs, brushes, curlers and smoothing irons
  • Manufacturing small electric food-processing and cooking equipment
  • Manufacturing other small electric appliances like waste disposers, shavers and toothbrushes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Demand from residential building construction
  • Number of residential property transactions
  • Real effective exchange rate
  • Official bank rate

  • Current Performance
  • Household demand trends
  • Housing market recovers
  • Import penetration intensifies
  • Margins improve
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth limitations
  • Housing market improves
  • Industry developments
  • Imports continue to rise
  • Potential issues
  • Table: Electrical Appliance Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Residential Building Construction
  • Household Appliance & Television Wholesaling
  • Electrical Household Appliance Retailing
  • Consumers

  • Key Selling Industries
  • Copper Production
  • Electric Motor, Generator & Transformer Manufacturing
  • Flat Glass Manufacturing
  • Manufacture of Plastic Plates, Sheets, Tubes and Profiles
  • Primary Form Plastics Manufacturing
  • Rubber Product Manufacturing

  • Products & Services
  • Other products and parts
  • White goods
  • Water heaters
  • Space heaters and other heaters
  • Fans
  • Chart: Electrical Appliance Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Exports
  • Retailers
  • Direct sales
  • Chart: Major Market Segmentation for the Electrical 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 Electrical Appliance Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electrical Appliance Manufacturing Industry

  • Industry Globalization
    AGA Rangemaster Ltd, Glen Dimplex Home Appliances Ltd, Baxi Heating UK Ltd,
  • Table: AGA Rangemaster Ltd - financial performance
  • Table: Glen Dimplex Home Appliances Ltd - financial performance
  • Table: Baxi Heating UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electrical 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 Electrical Appliance Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Electric Blanket
  • A blanket with an integrated electrical heating device usually placed above the top bed sheet.
  • Water Heater
  • A heating unit that sits underneath a water storage tank.
  • White Goods
  • Large household appliances such as refrigerators, freezers and washing machines.
  • What Our Customers Say

    Why buy this report?

    The Electrical Appliance Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Electrical 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 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 Electrical 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 Electrical 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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