How does an election year impact the appliance industry?
This question was asked of me recently at a trade-specific conference where we were discussing what seems to be relative stability in our trade markets, both for finished white goods in retail settings as well as the parts we need to repair them in the field. This is good news for consumers in 2024. There are many factors at play this year, and most of the industry is slowly recovering from the COVID-19 era supply chain disruptions.
A major player in the appliance world is a Chinese-owned conglomerate called Haier. They purchased all of General Electric’s appliance design and manufacturing, as well as the use of the brand name. GE was, and still is, one of the largest suppliers of retail and wholesale white goods and home technologies. As such, they have access to Asian supply chain opportunities that would not be available if it were strictly a domestic company.
China, as most people now realize, is not friendly to American manufacturing concerns unless they have a financial stake or control, and as a result, a lot to lose. Ironically, domestically, we are benefiting from China owning one of our oldest and largest appliance brands, along with its manufacturing and assembly infrastructure here in the USA. The political will to keep anything related to home ownership experiences positive in 2024 is also a factor.
It appears that appliance prices are nearly what they were pre-COVID-19, but how? Other durable manufactured products are at record-high prices and have stayed there—think automotive and recreational products. Energy costs are high, as are raw materials and labor costs. What we are seeing, as I have discussed with industry experts before, is a “de-contenting” and what would be considered a hyper-lean manufacturing environment.
What this means is that the products you are purchasing today, for less or the same as pre-pandemic products, are quite honestly some of the most poorly made products we have ever experienced here in the USA. Most importantly, the companies that manufacture them are planning on not supporting them long-term, and as a result, we are one step closer to that long-dreaded “throw-away” culture when it comes to appliances purchased for non-commercial use.
There are many factors and factions conspiring against the consumer with regard to household appliances, and they have been for years. It is small, incremental changes in how America views “repairability” and how much value current generations place on the ability to fix what is broken in their homes. I argue that it is imperative we purchase durable products that can be fixed for a decade. We already flood the world with small appliances and other electronic and universal waste, to the great detriment of the populations they impact the most—the global poor.
I encourage you to purchase products from companies that have made a commitment to repairability and, as a result, to our global environmental health and safety. Election years come and go—let us not lose sight of the true cost of “cheap” appliances designed to make us feel as we did before the COVID-19 pandemic impacted so much of our lives.
I am always available to advise on best practices and choices for wholesale bulk purchasers, as well as individuals and families looking for a long-term, durable, repairable appliance. Thank you for taking the time to read and consider this content.
