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  percent), Asia (20 percent) and Europe (17 percent), among others. Among its conclusions:
• The 6-mo. outlook for electronics manufacturing (because of the supply-chain crisis) has deteriorated– again. Expectations for sales have improved but material costs, labor costs, invento- ries and backlogs all are expected to continue to worsen.
• Two-thirds of manufac-
turers say they were forced
to raise prices in 2021, and
71 percent expect to do so
in 2022. Shortages and supply-chain issues led manufacturers to increase prices by an average of 14.5 percent in 2021, and firms expect to raise prices another 7-8 percent in 2022.
“Electronics manufacturers expect more problems on the horizon as a result of ongoing shortages, both in terms of the 6-mo. outlook and for expected prices in 2022, as the crisis appears to have no end in sight,” adds Shawn DuBravac, IPC’s chief economist and lead researcher on the study. “These issues and backlogs could have serious repercussions for consumers in the United States and beyond.”
Appliance
Expect demand for white goods/ major appliances to continue through- out 2022 and leveling off to pre-pan- demic highs, but supply chain struggles remain, which will impact production and delivery in the short term.
Electrolux, Europe’s largest appli- ance maker, reported during 2021’s fourth quarter that it will struggle into 2022 to meet demand due to worldwide supply-chain issues—a common refrain from appliance manufacturers. Global shortages of semiconductors and other electronic components, Jonas Samuelson, Electrolux chief executive, told Reuters, will continue as major issues, with primary impact on cooking appliances and washing machines.
Delivery times for certain models
of refrigerators, stoves and dishwash- ers, appliance designers and sellers recently told Wall Street Journal, have reached six months to a year. Like Elec- trolux, other major appliance produc- ers, such as GE Appliances and Whirlpool, report extended lead times due to supply-chain squeezes.
Expect the U.S. appliance market to grow at a 6.2-percent CAGR through 2025, placing market volume at $26.2 billion by 2025, according to Pricing Excellence, with the U.S. market resid- ing in the top five worldwide, behind China.
The small-domestic-appliances market is expected to reach $581.6 bil- lion worldwide by 2030, registering a CAGR of 13.0 percent from 2021 to 2030, according to a December 2021 report from Allied Market Research. Demand for smart technology, house- hold reassessment of appliance wants and needs during the pandemic, and increasing disposable income per capi- ta in many regions worldwide are key drivers of the projected rise. The clean- ing-appliances segment is estimated to exhibit the most significant growth, registering a CAGR of 14.3 percent through 2030.
The rise of smart IoT-enabled appli- ances is expected to continue, with this global market segment expected to reach $73.1 billion by 2026, growing from a 2020 market size of $33 billion at a CAGR of 13.9 percent over the
analysis period, according to a Decem- ber 2021 report from Global Industry Analysts Inc.
Construction and Off-Road Equipment
Privately owned housing starts in October 2021 reached a seasonally adjusted annual rate of 1.52 million, according to the most recent data avail- able from the U.S. Dept. of Commerce, 0.7 percent below the revised Septem- ber estimate but 0.4 percent above the October 2020 rate. While the industry saw potential of reaching 2 million starts by now, don’t expect that level anytime soon. The main hindrance: lack of labor, according to Ali Wolf, chief economist for Zonda, and Danushka Nanayakkara-Skillington, assistant vice president of forecasting and analysis for the National Associa- tion of Home Builders, who spoke to Builder magazine on the topic this past December. And again, supply-chain challenges will dampen housing starts in the short term.
Overall, U.S. residential and non- residential construction starts are fore- cast to rise 6 percent to $949 billion in 2022, according to Dodge Construction Network and reported by Equipment- World.com in November 2021. Dodge predicts 12-percent growth for 2021, and, should 2022’s prediction hold, construction starts will best the previ- ous high, from 2019.
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