Majap Sales Stalling In '05

Washington— What goes up must come down, and white goods are no exception.

Following last year's explosive 7.5 percent growth, factory shipments of major appliances are expected to return to their mean this year by falling 2 percent to 79.2 million units. The downturn represents the first significant setback since 1994, when wholesale sales also slipped 2 percent to 49.6 million units.

The dour projection — a median of forecasts from participating vendors — was developed by the Association of Home Appliance Manufacturers, here, as part of its annual Trends and Forecasts report. The good news, however, is that the industry is expected to enjoy a resurgence in 2006, when factory shipments are forecast to climb 3.2 percent to just over 80 million units.

The biggest drag on this year's shipments comes from room air, where unit sales are projected to fall nearly 20 percent to some 6.5 million units. Each of the other major majap product categories are expected to remain essentially flat for the balance of 2005 through 2006 — when room air finds it footing and ships about 7.4 million units for a 14 percent gain.