SIC 3633 Household Laundry Equipment

Encyclopedia of American Industries | 2005 | Copyright

SIC 3633
HOUSEHOLD LAUNDRY EQUIPMENT

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, over 70 percent of all U.S. homes had both a washer and a dryer. In the late 1990s, 17 establishments operated in this industry. Whirlpool Corporation, General Electric Appliances, and Maytag Corporation led the industry in 2000.

In 2000, the value of industry shipments totaled $4.25 billion, compared to $3.8 billion in 1997. Laundry equipment was the second largest home appliance market, following refrigeration.

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 may also 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 can also shorten replacement cycles. Finally,...

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