In the first quarter of 2023, EU’s electrical domestic appliances industry witnessed its second consecutive sharp decline in output (-4.7%, after -8%). These figures align with the ongoing downward trajectory observed since the second quarter of 2021, signaling the end of a robust post-COVID recovery in output, reveals EUROFER’s latest reportDuring the early phase of the pandemic, the sector experienced a surge in demand, fueled by widespread remote working across the EU. However, this uptrend has since eased due to a confluence of adverse factors. Gradual returns to offices after the pandemic, supply chain disruptions, escalating energy costs, the war in Ukraine, and the recent deterioration in the EU's industrial outlook over the first half of 2023 have all played their part in constraining the sector's growth.In 2020, the output decline was relatively moderate (-2.7%) compared to other EU steel-utilizing sectors. A promising recovery of +7.1% was achieved in 2021, primarily driven by strong performances during the first half of the year. However, this momentum drastically slowed down during the latter half, resulting in year-on-year declines or marginal growth at each quarter, leading up to the first quarter of 2023. This downward trajectory is predicted to persist at least until the third quarter of 2023.As the industry faces these challenges, strategic maneuvering and adaptive measures will be crucial. Emphasis on innovation and developing energy-efficient appliances may provide a competitive edge, considering the ongoing energy price hikes. Moreover, catering to emerging consumer demands for smart, connected appliances could unlock new avenues for growth. Collaborative efforts within the sector to address supply chain disruptions and mitigate the impact of geopolitical uncertainties can foster resilience.The electrical domestic appliances industry's fortunes will also be intertwined with broader macroeconomic factors, such as the pace of return to office-based work and the EU's industrial outlook. As the situation remains fluid, astute forecasting and agile decision-making will be essential to navigate through the headwinds. By striking a balance between operational efficiency, customer-centricity, and future-oriented product development, the industry can chart a course towards recovery and sustained growth.Looking ahead to the period of 2023-2024, the electrical domestic appliances sector faces a challenging landscape, with output expected to undergo further fluctuations. Despite a more resilient performance in 2022 than initially projected (-4.4%, revised upwards from -5%), the industry is slated to encounter another period of moderate recession in 2023 (-2.1%, revised downwards from -0.6%). A glimmer of hope emerges as a moderate recovery is anticipated in 2024 (+1.3%).The headwinds are likely to prevail, as the protracted weakness in the manufacturing sectors and subdued economic outlook continue to cast shadows on industrial activity, thereby impacting consumer demand. As a result, growth is predicted to remain negative until the third quarter of 2023, presenting the industry with a challenging path towards recovery.Amidst this backdrop of uncertainty, certain supportive factors may offer partial relief and serve as incentives for growth. The prevalence of remote working practices across the EU, albeit to a lesser extent than during the pandemic, will persist in the coming years, potentially bolstering demand for home appliances.Furthermore, the evolution of the so-called "Internet of Things" holds promise for the sector. Smart applications that enable the seamless connection of home appliances and devices present a potential avenue for growth. However, it is worth noting that the impact of these developments may not be tangible until 2024, requiring a longer-term perspective.As the industry charts its course, agile responses and strategic foresight will be indispensable. Adopting innovative measures to embrace the emerging trends in connected technology can unlock new possibilities for the sector's growth and competitiveness.Collaborative partnerships across the supply chain will be pivotal in addressing disruptions and shortages, while enhancing resilience and adaptability. Policymakers' support in fostering an enabling environment for investment and R&D initiatives can also play a significant role in shaping the sector's trajectory.
In the first quarter of 2023, EU’s electrical domestic appliances industry witnessed its second consecutive sharp decline in output (-4.7%, after -8%). These figures align with the ongoing downward trajectory observed since the second quarter of 2021, signaling the end of a robust post-COVID recovery in output, reveals EUROFER’s latest reportDuring the early phase of the pandemic, the sector experienced a surge in demand, fueled by widespread remote working across the EU. However, this uptrend has since eased due to a confluence of adverse factors. Gradual returns to offices after the pandemic, supply chain disruptions, escalating energy costs, the war in Ukraine, and the recent deterioration in the EU's industrial outlook over the first half of 2023 have all played their part in constraining the sector's growth.In 2020, the output decline was relatively moderate (-2.7%) compared to other EU steel-utilizing sectors. A promising recovery of +7.1% was achieved in 2021, primarily driven by strong performances during the first half of the year. However, this momentum drastically slowed down during the latter half, resulting in year-on-year declines or marginal growth at each quarter, leading up to the first quarter of 2023. This downward trajectory is predicted to persist at least until the third quarter of 2023.As the industry faces these challenges, strategic maneuvering and adaptive measures will be crucial. Emphasis on innovation and developing energy-efficient appliances may provide a competitive edge, considering the ongoing energy price hikes. Moreover, catering to emerging consumer demands for smart, connected appliances could unlock new avenues for growth. Collaborative efforts within the sector to address supply chain disruptions and mitigate the impact of geopolitical uncertainties can foster resilience.The electrical domestic appliances industry's fortunes will also be intertwined with broader macroeconomic factors, such as the pace of return to office-based work and the EU's industrial outlook. As the situation remains fluid, astute forecasting and agile decision-making will be essential to navigate through the headwinds. By striking a balance between operational efficiency, customer-centricity, and future-oriented product development, the industry can chart a course towards recovery and sustained growth.Looking ahead to the period of 2023-2024, the electrical domestic appliances sector faces a challenging landscape, with output expected to undergo further fluctuations. Despite a more resilient performance in 2022 than initially projected (-4.4%, revised upwards from -5%), the industry is slated to encounter another period of moderate recession in 2023 (-2.1%, revised downwards from -0.6%). A glimmer of hope emerges as a moderate recovery is anticipated in 2024 (+1.3%).The headwinds are likely to prevail, as the protracted weakness in the manufacturing sectors and subdued economic outlook continue to cast shadows on industrial activity, thereby impacting consumer demand. As a result, growth is predicted to remain negative until the third quarter of 2023, presenting the industry with a challenging path towards recovery.Amidst this backdrop of uncertainty, certain supportive factors may offer partial relief and serve as incentives for growth. The prevalence of remote working practices across the EU, albeit to a lesser extent than during the pandemic, will persist in the coming years, potentially bolstering demand for home appliances.Furthermore, the evolution of the so-called "Internet of Things" holds promise for the sector. Smart applications that enable the seamless connection of home appliances and devices present a potential avenue for growth. However, it is worth noting that the impact of these developments may not be tangible until 2024, requiring a longer-term perspective.As the industry charts its course, agile responses and strategic foresight will be indispensable. Adopting innovative measures to embrace the emerging trends in connected technology can unlock new possibilities for the sector's growth and competitiveness.Collaborative partnerships across the supply chain will be pivotal in addressing disruptions and shortages, while enhancing resilience and adaptability. Policymakers' support in fostering an enabling environment for investment and R&D initiatives can also play a significant role in shaping the sector's trajectory.
