Statistics Explained

Archive:Domestic appliances production statistics - NACE Rev. 1.1

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Data from January 2009. Most recent data: Further Eurostat information, Main tables and Database.

This article belongs to a set of statistical articles which analyse the structure, development and characteristics of the various economic activities in the European Union (EU). According to the statistical classification of economic activities in the EU (NACE Rev 1.1), the present article covers the production of domestic appliances, corresponding to NACE Group 29.7, which is part of the machinery and equipment sector. The activities covered in this article include the production of:

  • electrical appliances (such as refrigerators, freezers and dish washing machines);
  • heating appliances;
  • non-electric domestic cooking equipment.
Table 1: Manufacture of domestic appliances n.e.c. (NACE Group 29.7). Structural profile: ranking of top five Member States in terms of value added and persons employed, 2006

Main statistical findings

Structural profile

Table 2: Domestic appliances (CPA Group 29.7). Production of selected products, EU-27, 2007 (1)
Table 3: Manufacture of domestic appliances n.e.c. (NACE Group 29.7). Expenditure, productivity and profitability, EU-27, 2006

The domestic appliances manufacturing sector (NACE Group 29.7) of the EU-27 consisted of 5.2 thousand enterprises, which employed 287.6 thousand persons, accounting for 7.9 % of the workforce within machinery and equipment manufacturing (NACE Subsection DK). These enterprises recorded EUR 52.7 billion of turnover in 2006, from which EUR 12.7 billion of value added was generated, the latter accounting for 6.6 % of the machinery and equipment manufacturing total. Within this sector the manufacture of electric domestic appliances (NACE Class 29.71) contributed just over 84 % of sectoral value added and employment, the remainder coming from the manufacture of non-electric domestic appliances (NACE Class 29.72).

The value added generated by the domestic appliances manufacturing sector in Germany was much larger than that in any other Member State, accounting for 28.4 % of the EU-27 total in 2006: Italy (20.6 % of the EU-27 total) and the United Kingdom (10.4 %) were the only other Member States with a double-digit share. Italy and Germany had the largest workforces in this sector, both over 55 000 persons employed. In relative terms, Slovenia was by far the most specialised Member State[1] in the manufacture of domestic appliances, as this sector contributed 2.0 % to Slovenian non-financial business economy (NACE Sections C to I and K) value added in 2006, approaching nine times the average contribution (0.2 %) across the EU-27: this high degree of specialisation in Slovenia was due essentially to the electric domestic appliances manufacturing subsector.

The production index for domestic appliances manufacturing in the EU-27 developed in an almost identical manner to the index for machinery and equipment manufacturing as a whole in the period between 1997 and 2002. Thereafter, the output of domestic appliances manufacturing either contracted or grew weakly in every year with the exception of 2006 when growth of 4.4 % was recorded. Between 2003 and 2007 output from domestic appliances manufacturing grew on average by 0.8 % per year, whereas overall output from machinery and equipment manufacturing averaged growth of 5.3 % per year during the same period.

Expenditure and productivity

The EU-27's domestic appliances manufacturing sector recorded EUR 1.9 billion of gross tangible investment in 2006, 10.6 % of the machinery and equipment manufacturing total. This was equivalent to 14.6 % of the domestic appliances manufacturing sector's value added, giving this sector the highest investment rate among any of the machinery and equipment manufacturing NACE groups in 2006, although it was still some way below the non-financial business economy average of 18.4 %.

The proportion of operating expenditure accounted for by personnel costs in the EU-27’s domestic appliances manufacturing sector was 18.4 % in 2006, much lower than the average proportion within machinery and equipment manufacturing as a whole (23.6 %) and much closer to the proportion across the non-financial business economy (16.1 %). This low proportion may be explained, in part, by average personnel costs in the sector that were EUR 6.0 thousand per employee lower than the machinery and equipment manufacturing average, at EUR 32.8 thousand per employee. The apparent labour productivity of the domestic appliances manufacturing sector was EUR 44.2 thousand per person employed in 2006, resulting in a wage-adjusted labour productivity ratio of 134.6 %, fractionally below the ratio (135.8 %) for machinery and equipment manufacturing as a whole. The non-electric domestic appliances manufacturing subsector recorded a higher wage adjusted labour productivity ratio (150.4 %) that was only just below the non-financial business economy average (151.1 %). Slovakia recorded a negative wage-adjusted labour productivity ratio in its domestic appliances manufacturing sector in 2006, due to negative value added, while Sweden recorded a ratio of 92.1 % indicating that average personnel costs exceeded apparent labour productivity in its domestic appliances manufacturing sector.

Data sources and availability

The main part of the analysis in this article is derived from structural business statistics (SBS), including core, business statistics which are disseminated regularly, as well as information compiled on a multi-yearly basis, and the latest results from development projects.

Other data sources include the PRODCOM statistics on the production of manufactured goods.

Context

Technological advancements in the machinery and equipment that is used in other sectors of the economy (particularly in mining, manufacturing, energy provision and construction) can have a considerable impact upon the speed, quality and quantity of what is produced, thereby impacting on downstream productivity and profitability. The machinery and equipment sector is sensitive, therefore, to overall economic conditions and investment patterns both within the European Union and across the world (the two arguably being more intertwined than ever).

Among the activities covered by the machinery and equipment manufacturing sector, the domestic appliances manufacturing sector (NACE Group 29.7) is the only one for which households are the main customers. Product innovations have tended to concentrate on efficiency and environmental considerations such as energy and water consumption, lifestyle changes, the incorporation of new materials, design and ergonomics.

Further Eurostat information

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See also

Notes

  1. Bulgaria, Cyprus, Poland, Portugal and Romania, 2005; Denmark, Estonia, Latvia, Luxembourg, Malta and the Netherlands, not available.