### to: Judith Reich

Cc: AHAM DOE Laundry Task Force

AHAM Major Appliance Division Government Relations Council (Laundry Manufacturers)

f

rom: Debra Brunk

date: February 18, 2010

subject: Aggregated Residential Clothes Washer Incremental Cost Data for DOE Residential

Clothes Washer Energy Efficiency Standards Rulemaking

Attached please find aggregated incremental cost data for residential clothes washers. These data were

collected by AHAM from our members.

Table A

‐ 1 provides aggregated material, labor and overhead incremental costs with increasing efficiency

level (average, minimum and maximum values) for top load products

. Aggregated one

‐ time

expenditures for building CAPX, tooling and eq uipment CAPX, research and development and marketing

are also included.

Table A

‐ 2 provides an aggregated overall cost to the industry for increasing efficiency levels for top load

products. To determine these values, incremental costs (material, labor and overhead) were multiplied

by shipments and then summed. One

‐ time expendi tures were summed.

Table B

‐ 1 provides aggregated material, labor and overhead incremental costs with increasing efficiency

level (average, minimum and maximum values) for front load products

. Aggregated one

‐ time

expenditures for building CAPX, tooling and equipment CAPX, research and development and marketing

are also included. Minimum and maximum values are not consistent with th e average values as we

received six responses for average costs and only four responses for minimum and maximum costs.

Table B

‐ 2 provides an aggregated overall cost to the industry for increasing efficiency levels for front

load products. These values were determined in the same way as descri bed for Table A

‐ 2.

Table B

‐ 3 provides the same data as table B

‐ 1 except the average values are aggregated using the four

manufacturers who also provided minimum and maximum values.

We hope you will find this information helpful. Please contact me if you should have any questions.Table A-1: Aggregate calculations on incremental cost data for Residential Clothes Washers - Top Load

n 33333

Effieicncy Level 12345

Material 2.8$ 6.1$ 9.3$ 18.0$ 50.2$

Labor 0.1$ 1.5$ 2.7$ 4.4$ 7.2$

Overhead 0.2$ 0.8$ 1.0$ 1.6$ 1.8$

n 33333

Material 2.3$ 5.0$ 7.8$ 14.7$ 37.1$

Labor 0.1$ 1.1$ 1.9$ 3.1$ 5.1$

Overhead 0.2$ 0.7$ 0.8$ 1.4$ 1.7$

n 33333

Material 3.3$ 7.1 $ 10.8$ 21.4$ 63.3$

Labor 0.1$ 2.0$ 3.7$ 5.9$ 9.6$

Overhead 0.2$ 1.0$ 1.1$ 1.7$ 2.0$

n 33333

Building CAPX 0.3$ 2.2$ 2.9$ 3.2$ 5.8$

Tooling/Equipment CAPX 1.3$ 32.8$ 35.0$ 38.6$ 55.1$

n 33333

R&D 0.7$ 1.2$ 2.1$ 5.1$ 7.8$

Marketing 0.2$ 0.2$ 1.5$ 2.9$ 5.1$

Table A

‐ 2: Aggregated Total Industry Cost

‐ Top Loa d

Average Material, Labor, OH Cost

‐ all (Million $) 16.2$ 44.2$ 68.6$ 126.4$ 312.2$

Minimum Material, Labor, OH Cost

‐ all(Million $) 13.5$ 35.5$ 55.5$ 101.0$ 231.0$

Maximum Material, Labor, OH Cost

‐ all (Million $) 18.8$ 53.3$ 82.3$ 153.1$ 394.5$

CAPX

‐ all (Million $) 10.1$ 75.6$ 86.6$ 110.9 $ 175.4$

One

‐ Time Product Conversion

‐ all (Million $) 9.7$ 20.1$ 27.8$ 62.9$ 87.3$

Total Industry Cost 35.9$ 139.9$ 183.0$ 300.2$ 574.9$ One

‐ Time Product Conversion Expenses (Million $) Top Load (Vertical Axis)

Average Incremental Cost

Minimum Incremental Cost

Maximum Incremental Cost

Conversion capital Expenditures (Million $)

Top Load (Vertical Axis)

Total Industry CostTable B-1: Aggregate calculations on incremental cost data for Residential Clothes Washers (all data) - Front Load

n 6666 6

Effieicncy Level 1234 5

Material 2$ 5$ 11$ 30$ 59$

Labor 0$ 0$ 4$ 8$ 11$

Overhead 0$ 0$ 1$ 1$ 2$

n 4444 4

Material 0.02$ 0.42$ 1$ 15$ 30$

Labor 0.04$ 0.06$ 2$ 5$ 7$

Overhead 0.13$ 0.18$ 1$ 1$ 1$

n 4444 4

Material 0.03$ 0.47 $ 2$ 21$ 42$

Labor 0.05$ 0.07$ 0$ 6$ 9$

Overhead 0.14$ 0.20$ 1$ 1$ 2$

n 5555 5

Building CAPX 0.1$ 0.1$ 2.4$ 2.5$ 3.2$

Tooling/Equipment CAPX 0.8$ 0.8$ 11.0$ 17.0$ 22.6$

n 5555 5

R&D 0.2$ 0.2$ 0.8$ 2.7$ 6.1$

Marketing 0.3$ 0.3$ 2.3$ 3.2$ 5.4$

Table B

‐ 2: Aggregated Total Industry Cost

‐ Front Load

Average Material, Labor, OH Cost

‐ all (Million $) 6$ 18$ 48$ 118$ 218$

Minimum Material, Labor, OH Cost

‐ all(Million $) 1$ 2$ 12$ 63$ 115$

Maximum Material, Labor, OH Cost

‐ all (Million $) 1$ 2$ 9$ 83$ 160$

CAPX

‐ all (Million $) 14$ 14$ 173$ 218$ 276$

One

‐ Time Product Conversion

‐ all (Million $) 9$ 10$ 36$ 61$ 104$

Total Industry Cost 29.0$ 42.8$ 257.0$ 396.6$ 597.6$ Front Load (Horizontal Axis)

Average Incremental Cost

Minimum Incremental Cost

Maximum Incremental Cost

Conversion capital Expenditures (Million $)

One

‐ Time Product Conversion Expenses (Million $)

Note 1: Min and Max values are not consistent with the average values as we received 6 responses for average costs, and 4

responses for minimum and maximum costs. A separate summary table is provided for average, min and max all determined

from four responses.

Note 2: Red values for labor costs under efficiency level 5 indicate one less response. For this series of data, the labor costs are

an aggregate of 5 responses. Front Load (Horizontal Axis)

Total Industry CostTable B-3: Aggregate calculations on incremental cost data for Residential Clothes Washers (subset) - Front Load

n 44444

Effieicncy Level 12345

Material 0.03$ 0.45$ 2$ 18$ 36$

Labor 0.04$ 0.06$ 3$ 7$ 10$

Overhead 0.13$ 0.19$ 1$ 1$ 2$

n 44444

Material 0.02$ 0.42$ 1$ 15$ 30$

Labor 0.04$ 0.06$ 2$ 5$ 7$

Overhead 0.13$ 0.18$ 1$ 1$ 1$

n 44444

Material 0.0$ 0.5 $ 2$ 21$ 42$

Labor 0.0$ 0.1$ 0$ 6$ 9$

Overhead 0.1$ 0.2$ 1$ 1$ 2$

n 44444

Building CAPX

‐ $

‐ $ 0.2$ 0.3$ 1.1$

Tooling/Equipment CAPX 0.0$ 0.0$ 4.5$ 10.5$ 16.1$

n 44444

R&D 0.0$ 0.0$ 0.3$ 2.2$ 5.6$

Marketing 0.0$ 0.0$ 1.5$ 2.4$ 4.6$ Minimum Incremental Cost

Maximum Incremental Cost

Conversion capital Expenditures (Million $)

One

‐ Time Product Conversion Expenses (Million $) Front Load (Horizontal Axis)

Average Incremental Cost