4



# I 5900 Harper Rd., Suite 105, Solon, OH 44139 (216) 349-3060 Appliance Manufacturer Fax: (216) 498-9121

Tim Fausch Group Publisher (810) 244-6448 Linda M

. Calkins Publisher (216) 349-3060 Norman C

. Remick, Jr. Editor (708) 297-3459 Joe Jancsurak Senior Editor (216) 349-3060 Richard J. Babyak Technical Editor (216) 349-3060 Brian Beaulieu Economics Editor (603) 746-3135 James R. Stevens international Editor (708) 406-1884 Victor D. Chase Technology/Environment Editor (914) 666-8820 Tim Johnson Art/Production Manager (216) 349-3060 Kathleen L

. Warfield Sales Assistant (216) 349-3060 Vance R. Frost Circulation Services (216) 349-3060 Diane T

. Bowles' Circulation Director (810) 244-6455 Nancy Floyd Circulation Manager (810) 244-6429 Donna Olah Director of Audits (810) 244-6471 Marilyn D. Krall Financial Director (810) 244-6484 Brian P. Quinn Research Manager (810) 244-6450 Jesse Piper List Rental Manager (810) 244-6483 James E. Henderson President Corporate Offices: Business News Publishing , 755 West Big Beaver Rd. Suite 1000, Troy, MI 48084, (810) 362-3700 Fax: (800) 362-0317

Sales Team
Linda M. Calkins Publisher (216) 349-3060 Jeffrey Dembski
, Chris Kennedy, Steve Loerch
, Mike Stack Midwest (708) 498-4520 Fax: (708) 498-5911 Bill Doucette New England (508) 429-9861 Fax: (508) 429-3285 Steve'Walsh Mid Atlantic (610) 630-1864 Fax: (610) 630-1915 Michael J. Finnegan Central (216) 481-8861 Fax: (216) 481-9664 Terry Casaus W. Coast (213) 461-2264 Fax: (213) 465-6216 Patrick Connolly Europe (44)-702-77341 Fax: (44) 702-77559 Tim Johnson Reprints, Classifieds (216) 349-3060

PA APPLIANCE MANUFACTURER (ISSN 0003-679X) is • published monthly by Business News Publishing Co., 755 W. Big Beaver Rd.. Suite 1000, Troy, Ml, 48084-4900. (810) 362-3700 FAX: (810) 244-6439. James E

. Henderson
, President. Second-class postage paid at Troy, MI 48084 and additional mailing offices. Postmaster. Send form 3579 to 5900 Harper Rd. Suite 105, Solon, OH 44139-1835

. APPLIANCE MANUFACTURER, copyright 1994 by Business News Publishing Co. Annual non

-qualified subscription rates : USA, $55; CanadalMexieo
, $65; other countries, 5125 for air mail

. Except for special issues where price changes are indicated
, single copies of regular issues are available for $8, $10 and $12 (USA. Canada/ Mexicoand foreign). Printed in the USA. 

# Like It Or Not, DOE Drives Change

We hear this all the time from marketing executives for major-appliance manufacturers: "We could do that, but U.S. consumers aren't willing to pay more for energy-saving features." Then the Department of Energy (DOE) announces new standards and all of a sudden, the industry innovates. Such scenarios are familiar to makers of HVAC systems and refrigerators. Now, makers of home-laundry appliances are responding to DOE's yet-to-be-announced energy-efficiency standards. DOE's fmal ruling on future standards is expected to be made in 1996. The standards are expected to go into effect in 1999. The rulings will, in all likelihood, result in an onslaught of horizontal-axis washers. To date, however, Frigidaire is the only domestic OEM making horizontal-axis washers (sold under the White-Westinghouse brand). The OEM plans to introduce a new model in 1995. Whirlpool recently announced their intent to have ready in '96 a horizontal-axis washer (see Managers Update, page 18). And the remaining three OEMs (Maytag, GEA and Amana), we suspect, are developing versions of their own. No one disputes that horizontal-axis washers are superior to vertical-axis washers by virtue of the way they clean (dryer-like tumbling vs. churning agitators) and the amount of water and energy (one-third the amount for both) they require. What the industry has disputed is whether consumers are willing to pay more for such features. It's true that horizontal-axis washers can sell for about $400 to $500 more than comparable vertical-axis models. Even so, energy-conscious consumers could actually save money in the long-run by buying a horizontal-axis washer, says Howard Geller, executive director of the American Council for an Energy-Efficiency Economy (ACEEE), Washington. "ACEEE estimates that horizontal-axis washers will save consumers around $1,000 over the life of the product (15 years), due to lower energy and water bills, and fewer detergent purchases." Such a savings message, if presented as part of a well-crafted advertising/marketing campaign, would catch the attention of loyal top-load users-even those whose idea of saving energy is to sit on the couch while junior retrieves the remote control. "It's not that consumers are unwilling to pay more for energy efficiency, it's that they really haven't been provided with the options. It's difficult to know what it costs to operate a refrigerator or clothes washer," says Geller. That will change in coming years as utir-y companies throughout North America considering energy-saving interactive systems (see "Interactive Communications," page 60). Such systems will provide consumers with time-of-day pricing for appliances. As consumers learn to use this information, they'll come to expect more from their appliances. And, like it or not, if it weren't for DOE, energy-saving options such as horizontal-axis washers might not be under development.

Joe Jancsurak Senior Editor

Norm Remich is on leave.

If you have read this article

, circle 150. 

# I

i '. I 

# , I '" 

# 11M

Tim Fausch 5900 Harper Rd., Suite 105, Solon, OH 44139 (216) 349-3060 Fax: (216) 498-9121

Group Publisher (810) 244--6448 Linda M. Calkins Publisher (216) 349-3060 Norman C. Remich, Jr. Editor (708) 297-3459 Joe Jancsurak Senior Editor (216) 349-3060 Richard J. Babyak Technical Editor (216)**34~H06O** Brian Beaulieu Economics Editor (603) 746-3135 James R. Stevens International Editor (708) 406-1884 VictorD. Chase TechnologylEnvironment Editor (914) 666-8820 Tim Johnson Ar1lProducticin Manager (216) 349-3060 Kathleen L. Warfield Sales Assistant (216) 349-3060 Vance R. Frost Circulation Services (216) 349-3060 Diane T. Bowles' Circulation Director (810) 244-6455 Nancy Floyd Circulation Manager (810) 244--6429 DonnaOlah Director ofAudits (810) 244-6471 Marilfn D. Krall Financial Director (810) 244-6484 Brian P. Quinn Research Manager (810) 244·6450 Jesse Piper List Rental Manager (810) 244-6483 James E. Henderson President Corporate Offices: Business News Publishing, 755 West Big BeaverRd. Suite 1000, Troy, MI 48084,**(8~0)** 362·3700 Fax: (800) 362·0317


### SalesTeam
LindaM. Calkins Publisher (216) 349-3060 Jeffrey Dembski, Chris Kennedy, Steve Loerch, Mike Stack Midwest (708) 498-4520 Fax: (708) 498·5911 Bill Doucette NeW England (508) 429-9861 Fax: (508) 429-3285 SteveWalsh Mid Atlantic (610) 630-1864 Fax: (610) 630-1915 Michael J. Finnegan Central (216) 481·8861 Fax: (216) 481-9664 Terry Casaus

. W. 

### cOOst (213)461-2264 Fax: (213) 465-6216 Patrick Connolly Europe (44)-702-77341 Fax: (44) 702·77559 TimJohnson Reprints, Classifieds (216) 349-3060**WJ'~** APPUANCEMANUFACTURER (ISSN 0003-679X) is V . published monthly by Business News Publishing Co.• 755 W. Big Beaver Rd

.. Suite 1000, Troy, MI, 48084-4900, (8\0) 362-3700 FAX: (8\0) 244-6439. James E. Henderson, PresidenL Second-class postage paid al Troy, MI 48084 and additional rnaiIing offices. Posunaster: Send ronn 3579 10' 5900 Halper Rd. Suite lOS, Solar., OH 44139-\835. APPUANCE MANUFACTURER, copyright 1994 by Business News Publishing Co. Annual non-qualified S'.bscription rntes: USA. S55; CanadalMexil:o, S65; other countries, SI2S for air mail. Except for special issues where price changes "'" indicated, single copies of regular issues are**~** available for $8. $10 and SI2 (USA. 

# =";

C8nadalM.xico and foreign). Printed in the USA. INK 

## "**EDITO~IAH:** +(
,



# Like It Or Not, DOE Drives Change

We hearthis all thetimefrom marketing executives for major-appliance manufacturers: "We could do that, butU.S. consumers aren't willing to pay .more for energy-saving features."

Then the Department of Energy (DOE)

announces new standards and all of a sudden, the industry innovates.

Such scenarios are familiar to makers ofHVAC systems and refrigerators. Now, makers of home-laundry appliances are.responding to DOE's yet-to-be-announced energy-efficiency standards. DOE's fmal ruling on future standards is expected to be made in 1996. The standards are expected to go into effect in 1999. •

The rulings will, in all likelihood, result in an onslaught ofhorizontal-axis washers. To date, however, Frigidaire is the only domestic OEMmakinghorizontal-axis washers (sold underthe White-Westinghouse brand). The OEMplans to introduce a new model in 1995. Whirlpoql recently announced their intent to have ready in '96 a horizontal-axis washer (see Managers Update, page 18). And the remaining three OEMs (Maytag, GEA and Amana), we suspect, are developing versions oftheir own.

Noonedisputes that horizontal-axis washers are superiorto vertical-axis washersby virtue ofthe waythey clean (dryer-like tumbling vs. churning agitators) and the amount ofwater and energy (one-third the amount for both) they require.

Whattheindustryhas disputed is whetherconsumersare willing to pay morefor such features. It's true that horizontal-axis washers can sell for about $400 to $500 more than comparable vertical-axis models.

Even so, energy-conscious consumers could actually save money in the long-run by buying a horizontal-axis washer, says Howard Geller, executive director of the American Council for an Energy-Efficiency Economy (ACEEE), Washington.

"ACEEE estimates that horizontal-axis washers will save consumers around $1,000

over the life ofthe product (15 years), due to lower energy and water bills, and fewer detergent purchases."

Such a savings message, ifpresented as part ofa well-crafted advertising/marketing campaign, would catch the attention ofloyal top-Ioadusers--eventhose whose ideaof saving energy is to sit on the couch whilejuniorretrieves the remote control.

"It'snotthatconsumers areunwillingtopay more forenergy efficiency, it'sthatthey really haven't been provided with the options. It's difficult to know what it costs to operate a refrigerator or clothes washer," says Geller.

That will change in coming years as uili;.y companies throughout North America considering energy-saving interactive systems (see "Interactive Communications," page 60). Such systems will provide :::onsumers with time-of-day pricing for appliances. As consumers learn to use thIS infonnation, they'll come to expect more from their appliances.

And, like it or not, if it weren't for DOE, energy-saving options such as horizontal-axis washers might not be under development. 

# +

Joe Jancsurak: SeniorEditor



### Norm Remich is on leave.



### /fyou have read this article, circle 150. 

# I

i '. I 

# , I '" 

# 11M

Tim Fausch 5900 Harper Rd., Suite 105, Solon, OH 44139 (216) 349-3060 Fax: (216) 498-9121

Group Publisher (810) 244--6448 Linda M. Calkins Publisher (216) 349-3060 Norman C. Remich, Jr. Editor (708) 297-3459 Joe Jancsurak Senior Editor (216) 349-3060 Richard J. Babyak Technical Editor (216)**34~H06O** Brian Beaulieu Economics Editor (603) 746-3135 James R. Stevens International Editor (708) 406-1884 VictorD. Chase TechnologylEnvironment Editor (914) 666-8820 Tim Johnson Ar1lProducticin Manager (216) 349-3060 Kathleen L. Warfield Sales Assistant (216) 349-3060 Vance R. Frost Circulation Services (216) 349-3060 Diane T. Bowles' Circulation Director (810) 244-6455 Nancy Floyd Circulation Manager (810) 244--6429 DonnaOlah Director ofAudits (810) 244-6471 Marilfn D. Krall Financial Director (810) 244-6484 Brian P. Quinn Research Manager (810) 244·6450 Jesse Piper List Rental Manager (810) 244-6483 James E. Henderson President Corporate Offices: Business News Publishing, 755 West Big BeaverRd. Suite 1000, Troy, MI 48084,**(8~0)** 362·3700 Fax: (800) 362·0317


### SalesTeam
LindaM. Calkins Publisher (216) 349-3060 Jeffrey Dembski, Chris Kennedy, Steve Loerch, Mike Stack Midwest (708) 498-4520 Fax: (708) 498·5911 Bill Doucette NeW England (508) 429-9861 Fax: (508) 429-3285 SteveWalsh Mid Atlantic (610) 630-1864 Fax: (610) 630-1915 Michael J. Finnegan Central (216) 481·8861 Fax: (216) 481-9664 Terry Casaus

. W. 

### cOOst (213)461-2264 Fax: (213) 465-6216 Patrick Connolly Europe (44)-702-77341 Fax: (44) 702·77559 TimJohnson Reprints, Classifieds (216) 349-3060**WJ'~** APPUANCEMANUFACTURER (ISSN 0003-679X) is V . published monthly by Business News Publishing Co.• 755 W. Big Beaver Rd

.. Suite 1000, Troy, MI, 48084-4900, (8\0) 362-3700 FAX: (8\0) 244-6439. James E. Henderson, PresidenL Second-class postage paid al Troy, MI 48084 and additional rnaiIing offices. Posunaster: Send ronn 3579 10' 5900 Halper Rd. Suite lOS, Solar., OH 44139-\835. APPUANCE MANUFACTURER, copyright 1994 by Business News Publishing Co. Annual non-qualified S'.bscription rntes: USA. S55; CanadalMexil:o, S65; other countries, SI2S for air mail. Except for special issues where price changes "'" indicated, single copies of regular issues are**~** available for $8. $10 and SI2 (USA. 

# =";

C8nadalM.xico and foreign). Printed in the USA. INK 

## "**EDITO~IAH:** +(
,



# Like It Or Not, DOE Drives Change

We hearthis all thetimefrom marketing executives for major-appliance manufacturers: "We could do that, butU.S. consumers aren't willing to pay .more for energy-saving features."

Then the Department of Energy (DOE)

announces new standards and all of a sudden, the industry innovates.

Such scenarios are familiar to makers ofHVAC systems and refrigerators. Now, makers of home-laundry appliances are.responding to DOE's yet-to-be-announced energy-efficiency standards. DOE's fmal ruling on future standards is expected to be made in 1996. The standards are expected to go into effect in 1999. •

The rulings will, in all likelihood, result in an onslaught ofhorizontal-axis washers. To date, however, Frigidaire is the only domestic OEMmakinghorizontal-axis washers (sold underthe White-Westinghouse brand). The OEMplans to introduce a new model in 1995. Whirlpoql recently announced their intent to have ready in '96 a horizontal-axis washer (see Managers Update, page 18). And the remaining three OEMs (Maytag, GEA and Amana), we suspect, are developing versions oftheir own.

Noonedisputes that horizontal-axis washers are superiorto vertical-axis washersby virtue ofthe waythey clean (dryer-like tumbling vs. churning agitators) and the amount ofwater and energy (one-third the amount for both) they require.

Whattheindustryhas disputed is whetherconsumersare willing to pay morefor such features. It's true that horizontal-axis washers can sell for about $400 to $500 more than comparable vertical-axis models.

Even so, energy-conscious consumers could actually save money in the long-run by buying a horizontal-axis washer, says Howard Geller, executive director of the American Council for an Energy-Efficiency Economy (ACEEE), Washington.

"ACEEE estimates that horizontal-axis washers will save consumers around $1,000

over the life ofthe product (15 years), due to lower energy and water bills, and fewer detergent purchases."

Such a savings message, ifpresented as part ofa well-crafted advertising/marketing campaign, would catch the attention ofloyal top-Ioadusers--eventhose whose ideaof saving energy is to sit on the couch whilejuniorretrieves the remote control.

"It'snotthatconsumers areunwillingtopay more forenergy efficiency, it'sthatthey really haven't been provided with the options. It's difficult to know what it costs to operate a refrigerator or clothes washer," says Geller.

That will change in coming years as uili;.y companies throughout North America considering energy-saving interactive systems (see "Interactive Communications," page 60). Such systems will provide :::onsumers with time-of-day pricing for appliances. As consumers learn to use thIS infonnation, they'll come to expect more from their appliances.

And, like it or not, if it weren't for DOE, energy-saving options such as horizontal-axis washers might not be under development. 

# +

Joe Jancsurak: SeniorEditor



### Norm Remich is on leave.



### /fyou have read this article, circle 150.