APPENDIX 13A. THE LOW-VOLUME MANUFACTURER 


TABLE OF CONTENTS 


13A.1 INTRODUCTION ...................................................................................................... 13A-1 


13A.2 SEGMENT REVENUES............................................................................................ 13A-1 


13A.3 SHIPMENT VOLUMES ............................................................................................ 13A-4 


LIST OF TABLES 

Table 13A.2.1 Reported LVM Revenue by Product Line ...................................................... 13A-1 


Table 13A.2.3 LVM Revenues by Market Segment............................................................... 13A-2 


Table 13A.2.4 Stated LVM Revenue by Product and Market Segment ($MM) .................... 13A-2 


Table 13A.2.5 Disaggregated LVM Washer Revenues ($MM)............................................. 13A-3 


Table 13A.2.6 DOE Estimate of LVM Washer Revenue Percentages ($MM)...................... 13A-3 


Table 13A.3.1 DOE Estimate of LVM Clothes Washer Unit Shipments (2006)................... 13A-5 


LIST OF FIGURES 

Figure 13A.2.1 LVM Clothes Washer Revenue ($MM) by End-User and Drum 

Orientation in 2006. ........................................................................................ 13A-4

13A-i 

EERE-2006-STD-0127 COMMENT 66.2
APPENDIX 13A: THE LOW-VOLUME MANUFACTURER 

13A.1 INTRODUCTION 

The purpose of this appendix is to clarify how the Department of Energy (DOE) made its 

estimates regarding the shipment volumes and the importance of the commercial clothes washer 

business to the low- volume manufacturer (LVM). To make its estimates, DOE relied on 

statements made by the LVM in its audited annual reports filed with the U.S. Securities and 

Exchange Commission (SEC) which were supplemented with statements to DOE. 

From 2002 to 2005, the annual reports broke out the approximate revenue that each LVM 

product line generated. In its annual reports, the LVM also stated the revenues by end-user 

market segment; i.e., residential and commercial. The LVM recorded no residential revenues 

from 1999 to 2004 due to a non-compete agreement. In 2004, the non-compete agreement 

expired and residential sales recommenced. 

13A.2 SEGMENT REVENUES 

Table 13A.2.1 details DOE’s analysis of reported revenues for the LVM disaggregated 

by product type and market segment as a percentage of total revenue.

 Table 13A.2.1 Reported LVM Revenue by Product Line 

Year 

Category 2002 2003 2004 2005 2006 

Washer Extractors 

Top Load Washers 

Front Load Washers 

26% 

17% 

5% 

25% 

17% 

4% 

24% 

16% 

5% 

25% 

14% 

6% 

24% 

15% 

6% 

All Washers 

Tumbler Dryers 

Standard Dryers 

48% 

21% 

11% 

46% 

22% 

11% 

45% 

22% 

11% 

45% 

23% 

11% 

45% 

23% 

11% 

All Dryers 

Presses + Finishing 

Service Parts 

Value-Added Services 

Other-Sourced Product 

32%

3% 

14% 

3% 

0% 

33%

3% 

14% 

2% 

2% 

33%

3% 

14% 

2% 

3% 

34%

2% 

13% 

3% 

3% 

34% 

2% 

13% 

2% 

4% 

Other 20% 21% 22% 21% 21% 

Total 100% 100% 100% 100% 100% 

The LVM also listed commercial, residential, and service parts revenue for every year 

2002 to 2006, as shown in Table 13A.2.2. “Other” revenues refer to revenues from transactions 

due to an acquisition that the LVM completed in 2006. 

13A-1 

EERE-2006-STD-0127 COMMENT 66.2
 

 

Table 13A.2.2 LVM Revenues by Market Segment ($MM) 

Year 2002 2003 2004 2005 2006 

Residential Revenue 

Commercial Revenue 

Service Parts 

Other 

$0.0 

$220.1 

$35.5 

$0.0 

$0.0 

$230.7 

$36.9 

$0.0 

$3.6 

$232.9 

$38.2 

$0.0 

$8.5 

$268.3 

$40.5 

$0.0 

$14.4 

$282.9 

$45.7 

$23.1 

Annual Revenue $255.6 $267.6 $281.0 $317.3 $366.1 

DOE subsequently overlaid the tables listing revenues by product category and revenue 

by market segment in order to disaggregate the revenues by market segment and product line, 

shown below in Table 13A.2.3. The LVM subsequently reviewed and corrected the DOE 

estimates. 

Table 13A.2.3 Stated LVM Revenues by Product and Market Segment ($MM) 

Year 

Category 2002 2003 2004 2005 2006 

Residential Sales Revenue 

Top-Load Washers 

Front-Load Washers 

Standard Dryers 

$0.0 

$0.0 

$0.0 

$0.0 

$0.0 

$0.0 

$1.5 

$0.8 

$1.3 

$4.4 

$0.9 

$3.2 

$8.7 

$0.6 

$5.1 

Sub-Total 

Commercial Sales Revenue 

Top-Load Washers 

Front-Load Washers 

Standard Dryers 

$0.0 

$43.3 

$11.8 

$29.3 

$0.0 

$45.8 

$12.1 

$31.1 

$3.6 

$42.9 

$14.2 

$29.3 

$8.5 

$41.5 

$15.1 

$30.3 

$14.4 

$42.8 

$19.2 

$30.7 

Sub-Total 

Attributable Service Parts Revenue 

$84.4 

$12.1 

$89.0 

$12.6 

$86.4 

$12.5 

$86.9 

$12.6 

$92.7 

$14.5 

Total Washer + Dryer Revenues $96.5 $101.6 $102.5 $108.0 $121.6 

Total LVM Revenues 

Washer + Dryer + Parts Revenue % 

$255.6 

37.8% 

$267.6

38.0% 

 $281.0

36.5% 

 $317.3

34.0% 

 $366.1 

33.2% 

Table 13A.2.3 illustrates how important the clothes washer plus dryer business is 

estimated to be for the LVM. The percentage of total revenues represented by the washer and 

dryer market has shrunk from 38% in 2002 but still represents about a third of its total revenues 

in 2006. Thus, this product category remains very important to the LVM. The balance of 

revenues comes primarily from high-capacity commercial laundry equipment. Standard dryer 

sales are usually bundled with clothes washer sales; hence, their inclusion in the above analysis. 

Besides providing revenue, the clothes washer and standard dryer sales give the LVM the 

scale to help in purchasing parts and raw materials, and to help amortize equipment and tooling 

13A-2
 

EERE-2006-STD-0127 COMMENT 66.2
 

 

investments. If standard dryers and their estimated parts revenues were to be removed from 

Table 13A.2.1, the importance of the washer business remains evident in Table 13A.2.4. 

Table 13A.2.4 Disaggregated LVM Washer Revenues ($MM) 

Year 

Category 2002 2003 2004 2005 2006 

Residential Sales 

Top-Load Washers 

Front-Load Washers 

$0.0 

$0.0 

$0.0 

$0.0 

$1.5 

$0.8 

$4.4 

$0.9 

$8.7 

$0.6 

Sub-Total 

Commercial Sales 

Top-Load Washers 

Front-Load Washers 

$0.0 

$43.3 

$11.8 

$0.0 

$45.8 

$12.1 

$2.3 

$42.9 

$14.2 

$5.3 

$41.5 

$15.1 

$9.3 

$42.8 

$19.2 

Sub-Total 

Attributable Service Parts Revenue 

$55.1 

$7.9 

$57.9 

$8.2 

$57.1 

$8.3 

$56.6 

$8.2 

$62.0 

$9.7 

Total Washer + Dryer Revenues $63.0 $66.1 $67.7 $70.1 $81.0 

Total LVM Revenues 

Washer + Dryer + Parts Revenue % 

$255.6

24.6% 

 $267.6

24.7% 

 $281.0

24.1% 

 $317.3

22.1% 

 $366.1 

22.1% 

While the revenues of the clothes washer business have been declining as a percentage of 

overall sales from over 25 percent in 2002 to less than 22 percent in 2006, the clothes washer 

business remains a substantial business unit for the LVM. Table 13A.2.5 lists the relative 

importance of washer platforms and market segments to the LVM. 

Table 13A.2.5 DOE Estimate of LVM Washer Revenue Percentages ($MM) 

Year 

2002 2003 2004 2005 2006 

Revenue Percentage by 

Product Line 

Top Loader 77.3% 81.0% 76.2% 70.0% 65.2% 

Front Loader 22.7% 19.0% 23.8% 30.0% 34.8% 

Revenue Percentage by 

Market Segment 

Residential 0.0% 0.0% 4.1% 10.2% 13.2% 

Commercial 100.0% 100.0% 95.9% 89.8% 86.8% 

Although the revenues of front-loading clothes washers have increased, top-loading 

commercial clothes washers continue to represent the majority of sales. Figure 13A.2.1 details 

the product and market segment data for the LVM in 2006. 

13A-3
 

EERE-2006-STD-0127 COMMENT 66.2
Commercial FrontLoader , $19.2, 24% 

Commercial TopLoader, $42.8, 52% 

Commercial Parts 

Sales, $8.4, 10% 

Residential FrontLoader, $0.6, 1% 

Residential TopLoader, $8.7, 11% 

Residential Parts 

Sales, $1.3, 2% 

Figure 13A.2.1 LVM Clothes Washer Revenue ($MM) by End-User and Drum 

Orientation in 2006. 

The potential impact of an energy efficiency standard that eliminates top-loading 

commercial clothes washers could thus be quite significant. The commercial top-loading 

business alone represents over 52 percent of total clothes washer plus parts sales and about 12 

percent of total LVM revenues. Accounting for the bundled parts and dryer sales increases the 

importance of the commercial clothes washer sales further. 

13A.3 SHIPMENT VOLUMES 

While annual reports from subsequent years show significant growth in the residential 

market segment, commercial sales are still significantly higher. Based on the pricing survey 

(Table 3.11.2) and the published clothes washer markups (Table 8.2.42 in Chapter 8 of this 

TSD), DOE made the following shipments estimates for this manufacturer as of 2006. 

13A-4
 

EERE-2006-STD-0127 COMMENT 66.2
 

Table 13A.3.1 DOE Estimate of LVM Clothes Washer Unit Shipments (2006) 

Market 

Segment 

Drum 

Axis 

Estimated 

2005 

Revenues 

($MM) 

EndUser 

Clothes 

Washer 

Cost* 

Total 

Clothes 

Washer 

Markup** 

Mfgr. 

Markup* 

* 

Shipment 

Volume by 

Sales 

Channel 

Commercial 

TopLoading 

FrontLoading 

$42.8 

$19.2 

/ 

/ 

$824 

$1,355 

X 

X 

1.93 

1.93 

/ 

/ 

1.23 

1.23 

= 

= 

81,502 

22,234 

Residential 

TopLoading 

FrontLoading 

$8.7 

$0.6 

/ 

/ 

$697 

$1,332 

X 

X 

1.93 

1.93 

/ 

/ 

1.23 

1.23 

= 

= 

19,586 

707 

Total Mfg Volume (units) = 124,028 

* See Chapter 3 of the ANOPR TSD 

** See Chapter 8 of the ANOPR TSD 

Shipments Assumptions 

� End-user prices depend on the presence of a coin box. Further, 

– Commercial units require a coin box; and 

– Residential units do not require a coin box. 

13A-5
 

EERE-2006-STD-0127 COMMENT 66.2