Major Household Appliances Industry Profile

Definition of the Industry

This industry group comprises establishments primarily engaged in manufacturing kitchen, bathroom and other household appliances. Household appliances fall under North American Industry Classification System (NAICS) Code 3352: household appliances.

Statistical Summary

Household Appliances Manufacturing [NAICS 3352] — Major Economic Indicators
(millions of $ CAD, employment in thousands)
Economic Indicators 2004 2005 2006 2007 2008 % Change
2007-2008		 CAAGR
Source: Statistics Canada, Trade Data Online.
Definitions: 
CAAGR: Compound Aveerage Annual Growth Rate
Apparent Domestic Market = Shipments plus Imports minus Exports
Manufacturing Intensity Ratio (MIR) = Gross Domestic Product (GDP) divided by Shipments
Import Penetration = Imports divided by ADM
Export Orientation = Exports divided by Shipments
Domestic Market Share = Shipments minus Exports divided by ADM
Apparent Domestic Market 2,926 3,038 3,149 3,428 3,357 -2.1% 2.1%
Shipments 1,882 1,802 1,719 1,575 1,355 -14.0% -4.6%
Gross Domestic Product 549 575 558 504 432 -14.3% -4.6%
Manufacturing Intensity Ratio 29.2% 31.9% 32.5% 32.0% 31.9% -0.1% 0.7%
Total Imports 2,303 2,493 2,668 2,851 2,919 2.4% 4.9%
Domestic Exports 1,260 1,256 1,238 999 917 -8.2% -2.3%
Trade Balance -1,043 -1,237 -1,430 -1,853 -2,002 8.1% 10.3%
Import Penetration 78.7% 82.1% 84.7% 83.2% 86.9% 3.8% 2.1%
Export Orientation 66.9% 69.7% 72.0% 63.4% 67.7% 4.3% 0.2%
Domestic Market Share 21.3% 17.9% 15.3% 16.8% 13.1% -3.8% -2.1%
Labour Productivity 66.0 74.3 81.4 74.9 72.9 -2.7% -2.1%
Employment 8.3 7.7 6.9 6.7 5.9 -12% -2.6%

Economic Overview

Despite declining shipments and GDP, the manufacturing intensity stayed at 31.9%. Shipments fell by 14.0 percent, from $1.6 billion in 2007 to $1.4 billion. Likewise, GDP fell by 14.3 percent, from $504 million to $432 million. Both declined at an average annual rate of 4.6 percent between 2004 and 2008.

The decline in exports coupled with the growth in imports widened the trade deficit to $2,002 million. Exports fell by 8.2 percent, from $1.0 billion in 2007 to $917 million, although they still accounted for two-thirds of all shipments. Imports grew by 2.4 percent to $2.9 billion, accounting for 86.9 percent of the apparent domestic market. Indeed, imports drove the apparent domestic market growth, revealing Canadians' preferences for imported household appliances.

Both employment and productivity have declined in recent years. Employment fell by 12.0 percent, from 6,700 in 2007 to 5,900 in 2008. Productivity, as measured by output per employee, fell to $72,900 in 2007 from $81,400 in 2006.

Major Issues

Discussions related to the Clean Air Act and its impact on energy efficiency standards for household appliances were initiated in 2006. As these standards are currently being finalized, the degree to which appliance manufacturers will be affected is still to be determined.

Associations