The advent of home appliances has profoundly transformed daily domestic life. This technological revolution, which began in earnest during the mid-20th century, has become so conventional in modern society that younger generations often take these labour-saving devices for granted. 

The domestic revolution

As a child I recall being captivated by the mesmerising sight of a washing machine in action, the absence of a lid offering a window into a world of swirling water and clothes. This seemingly simple device represented a significant leap forward in household technology, gradually liberating women from the physically demanding and time-consuming task of manual laundry. Indeed, the proliferation of white goods—from refrigerators to dishwashers—has dramatically enhanced the quality of life for families. These appliances have not only reduced the physical burden of housekeeping but have also freed up a considerable time for other, more pleasant aspects of life. It is wise to reflect periodically on the not-so-distant past when such help was absent, to fully appreciate the magnitude of this domestic revolution.

The widespread adoption of home appliances is inextricably linked to broader economic development and the expansion of electrical appliances. These factors have collectively contributed to a substantial improvement in our standard of living while creating jobs infinitely more gratifying than the chores they replaced.

Economic impact and global challenges

The European home appliance industry is at a crossroads, facing challenges that could profoundly impact its future and therefore the broader EU economy. Contributing €77.0 billion to the EU’s GDP and employing around one million people directly and indirectly across 3,200 factories, this sector forms a cornerstone of Europe’s industrial and economic ecosystem. Beyond its economic contributions, the industry has demonstrated leadership in innovation, particularly in developing energy-efficient, sustainable, and technologically advanced appliances that align with the EU’s environmental and digital transformation goals. European manufacturers have been at the forefront of producing eco-friendly products and smart appliances that integrate seamlessly with the Internet of Things ecosystems, reinforcing the EU’s reputation for technological progress and environmental stewardship.

Despite these achievements, the industry faces mounting challenges, particularly from intensifying global competition. Asian manufacturers are increasingly dominant, and rapid urbanisation in Africa presents both opportunities and obstacles. The African market, expected to grow at a Compound Annual Growth Rate of over 5% in coming years, represents a significant potential customer base. Recognising the potential in the region, Turkish manufacturer Beko has begun investing there, opening a factory in Egypt. However, workers in Beko’s EU factories, particularly in Italy, are concerned about job security due to lower labour costs in Egypt. This strategic expansion comes at a time when EU policymakers seem to question the industry’s value to the EU.

A senior European Commission official, a key figure behind the Clean Industrial Deal, has controversially declared that the home appliance sector is no longer considered strategic. They suggested prioritising lower-cost appliances, regardless of their origin. Critics argue this perspective overlooks the industry’s vital role in energy efficiency, the circular economy, and sustaining Europe’s manufacturing base. They also dismissed the industry’s potential to drive innovation and sustainability, which are central to the EU’s broader goals.

This stance, supported by Northern and Baltic member states with limited industrial bases, has provoked significant concern among stakeholders, particularly in Poland, Germany, and Italy. It risks jeopardising not only the jobs of one million Europeans but also the existence of 3,200 factories, many located in regions heavily dependent on manufacturing. The potential consequences of such a policy shift could include widespread factory closures, social and economic disruption, and the erosion of specialised knowledge and skills that have been cultivated over the decades.

Policy implications and the need for strategic support

This policy direction stems from several factors, including the influence of environmental groups and external pressures from the UK and the U.S., which may seek to undermine the EU’s industrial competitiveness and environmental leadership. Additionally, the shift in focus among Northern European economies towards finance, trading, and logistics may explain their apparent lack of commitment to preserving industrial sectors like home appliances. This transition has left large parts of Europe’s manufacturing sector vulnerable to external competition. It is understandable that the EU industry is concerned by the Commission’s apparent prioritisation of short-term product policy over long-term industrial strategy, as this could severely undermine Europe’s industrial ecosystem. 

The Mario Draghi report on ‘The Future of European Competitiveness’ underscores this danger, identifying an innovation gap between the EU and its global competitors and highlighting the need to balance decarbonisation with economic resilience. Draghi’s report emphasises that preserving Europe’s industrial base is essential for maintaining competitiveness, particularly in sectors like home appliances, which are well-positioned to contribute to both environmental sustainability and technological advancement.

A decline of this industry would have far-reaching consequences. Beyond job losses and factory closures, it would erode the EU’s capacity for innovation and its strategic autonomy in producing essential goods. The loss of expertise, skills, and industrial infrastructure could leave the EU dependent on external suppliers, undermining its long-term economic stability and industrial sovereignty.

Furthermore, the home appliance sector, which has always been very advanced in technology innovation, has the potential to be a key driver of the EU’s green transition and digital transformation. Smart appliances, which operate at the intersection of the physical and digital worlds, represent a critical component of the EU’s technological future. Policymakers must recognise the sector’s strategic importance and provide the necessary support to ensure its continued contribution to Europe’s economy and environmental goals. Key measures include increased investment in research and development, targeted support for workforce training, and facilitating market access to sustain the industry’s competitiveness.

I consider the European Commission’s current stance surprising and shortsighted, indeed inconsistent with the goals of the Clean Industrial Deal, which aims to foster a sustainable and competitive EU. By dismissing the appliance sector’s strategic importance, the EU risks sacrificing a vital part of its industrial base, thereby undermining its broader objectives of innovation, sustainability, and economic resilience.

To avoid such an outcome, the EU must adopt a more constructive approach. Policymakers should view the home appliance industry as a strategic asset, recognising its contributions to environmental stewardship, technological leadership, economic stability, and quality of life.