Whirlpool (NYSE: WHR) and other manufacturers are improving their efficiency and productivity via automation, but shares continue to sink.



Chart Courtesy of StockCharts.com

Whirlpool has been steadily decreasing its workforce, closing inefficient plants, and increasing its investment in automation. It is now the world's biggest appliance maker based on revenues. But the stock is in a down trend and has recently crossed below its 200-day moving average, making the chart look even worse.

This is ironic, but not surprising. After all, appliances are meant for homes. And with fewer homes being built, sales of appliances will fall.

What's most bizarre, is that as Whirlpool automates, its fate is more dependant than ever on people building, buying and furnishing houses. And as the number of those without work increases, or even remains at today's high levels, fewer houses will be built, and so will the demand for new appliances remain muted.

So the Catch-22 is that Whirlpool will make money from its automation and efficiency investments, but growth will remain elusive until people get jobs, buy houses, and need appliances.

What an interesting Universe we live in.

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