Sunday, August 23, 2009

MORE $ FOR MORE CLUNKERS?

Considering the arguable success of the "cash for clunkers" program with the auto industry, the Energy department is gearing up for a cash for clunker program involving "high efficiency" appliances; dishwashers, refrigerators, washer / dryers and the like.
The focus being to spur on business for appliance manufacturers and retailers, and getting rid of energy guzzling appliances in favor of Energy Star rated appliances. The nation boosts sales, and reduces energy consumption.
The trouble with this concept, is the big box retailers have already reduced profit margins on all appliances with little to no effect. Also, consumers do not have any concept of, or appreciation of the energy consumption their older appliances gobble up; and in fact, the savings is marginal for a single user as opposed to the effect on the nation as a whole.
In my humble opinion, any additional "cash for clunkers" program must be green related to justify its existence....dual pane windows, rebates on residential solar panel systems, tankless water heating systems, and the like. This will decrease our nation's energy consumption, and increase revenues to manufacturers that will have to create jobs to fulfill the demand.
As vulnerable as the appliance manufacturers are at present, they have to downsize and get over it....at least until they come up with innovations the consumer cannot live without...that's their challenge to survive.
As I have noted before in previous postings, if there is one business sector that has benefitted from the economic downturn, it is any one who takes an existing product and repairs or alters them to be like new (appliance repair, tv repair, computer repair and upgrades, shoe repair, auto mechanics, etc.). Clearly we have emerged from the "everything is disposable" period and realized that repairing can make financial sense. And in my opinion, the government should not spend money trying to change this paradigm.

1 comment:

Papa Giorgio, M.A.T.S. said...

.

Watch the whole thing Kimba.
http://www.youtube.com/watch?v=gOgmwyfKuL8

.