Page 22 - Metalorming Magazine January/February 2023

Among trends driving sales in the appliance market: growth in the number of smart homes, as suppliers seek to deliver innovations such as connectivity and enhanced user experiences. Think appliances equipped with sensors and algorithms for remote moni- toring and control.
And not to be outdone, GE opened a new micro factory in 2022, in Stam- ford, CT, and then, in October, announced plans to invest $1 billion cumulatively with diverse-owned sup- pliers by 2030. Says Kevin Nolan, pres- ident & CEO of GE Appliances: “We made this commitment because a diverse and resilient supply chain here in America is critical to our success— it’s the right thing to do, it’s good for our business and it’s good for the com- munities that we serve.”
All of that said, manufacturers have felt the economic pinch of inflation. A mid-2022 press release from Electrolux notes weaker-than-expected consumer demand in Europe and North America, driving the company to cut costs in both regions and to launch a turn- around program in North America. “High inventory levels at retailers and production inefficiencies and high costs caused by continuing supply- chain problems are adding to these challenges,” according to the release.
Whirlpool had noted similar mid- year challenges, reporting a net sales decline of 4.3 percent caused by dis- ruptions in the supply chain and a slowdown in demand.
Construction/Off-Highway
One year after its inception, the Infrastructure Investment and Jobs Act (IIJA) is “poised to advance the Amer- ican clean-energy transition and the Biden administration has taken many steps to operationalize the provisions,” notes a late-2022 Power Line article from American Clean Power. Touted as the largest-ever investment in clean- energy infrastructure (until passage of the Inflation Reduction Act of 2022), the IIJA “set us on a path to make unprecedented investments to mod- ernize and enhance the nation’s elec- trical grid,” the article points out.
Paired with the Inflation Reduction Act, the IIJA provides the policy foun- dation on which the clean-energy industry began to build a new energy- transmission infrastructure. Most recently, in November 2022, the U.S. Department of Energy (DoE) issued its
and washing machines) is expected to grow by a 2.56-percent CAGR through 2027; the segment is expected to show a volume growth of 3.2 percent in 2023. This according to Statistica.
Helping to drive sales: rapid adop- tion of IOT technology within smart household appliances. As noted in a ResearchandMarkets report:
“Due to busy schedules and lack of time to manage daily routine activities, an increasing number of people in the United States are preferring residence with advanced facilities such as dish- washers, grinders, coffee makers, etc., to save time. Further, the market is expected to increase due to a growing number of single-person households, surging urban population, growth in number of smart homes, rising mil- lennial population, improved and surg- ing online sales of small household appliances, surging demand for smart sensors, and rising demand for energy optimization.”
Suppliers not only seek to deliver innovation such as connectivity and enhanced user experiences, but also to be sensitive to the environment, including investing in the use of sus- tainable materials, increasing energy efficiency in products, and responsible recycling, as well as providing refur- bished and repairable devices, while lowering their carbon footprint. Think clothes dryers equipped with sensors and algorithms to measure the mois- ture content of clothes, and then able
to adjust drying time and temperature to optimize drying cycles; washing machines that automatically identify fabric types and dirt levels, optimizing performance; and mobile apps con- sumers can use to remotely monitor and control appliances.
ESG (environmental, social and gov- ernance) is top of mind throughout the industry, exemplified by Whirlpool announcing, in September 2022, its plans to source sufficient renewable energy for 100 percent of electricity for its U.S. plant operations. Whirlpool previously had announced its 2030 commitment to net-zero goals, pledg- ing to reach net zero across more than 30 global manufacturing sites and dis- tribution centers. Initiatives outlined by Whirlpool to attain these goals include working toward 100-percent renewable-energy usage through wind and solar-panel installations, and power purchase agreements that fund wind and solar farms, as well as ener- gy-efficiency programs at the compa- ny’s plants and facilities, and offsets for remaining emissions that can’t be avoided.
Along similar lines, Electrolux, in recognizing its top global suppliers in November 2022, says that it looks for suppliers that value “operational excel- lence, sustainability and innovation, which are key to delivering outstanding branded lifetime experiences for our consumers,” according to chief pur- chasing officer Filippo Milanese.
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2023 MARKET FORECAST