What are durable items?

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Durable goods are products designed to last for at least three years without needing replacement, such as appliances and cars. They are a valuable economic indicator, with strong sales indicating economic health. Non-durable goods, such as personal care products and food, are designed to wear out quickly and need frequent replacement. Companies aim to build brand loyalty among consumers for durable goods, and data on sales is readily available from government agencies.

Durable or hard goods are products intended to hold up through extended use, rather than wear out quickly. A classic example of a durable good is an appliance such as an oven. The opposite is non-durable goods; a roast that could be cooked in that oven would be an example of this type of good. Most governments track sales of durable goods as an economic indicator, as strong sales indicate economic health.

As a general rule, durable goods can last at least three years without needing to be replaced. They may require repairs or service, although ideally they are designed to last with minimal risk of failure during the first few years of service. These products can also last much longer than three years, of course, with three years of regular use being the minimum standard of performance. An item like a car can run for 20 years or more with proper care.

These are long term purchases and some can be very expensive. In most cases, there are long gaps between those purchases because people don’t need to replace them on a regular basis. In contrast, with non-durable goods, also known as soft goods or consumables, people have to replace them constantly because the items are designed to wear out quickly. Products such as personal care products, food, paper and textiles are included in this group.

Consumer durables are manufactured by a number of companies that aim to produce products that provide utility and service over time. They usually come with warranties that are designed to act as guarantees for consumers. Many companies also work hard to build a reputation for wanting consumers to think of them on the rare occasion that new hard goods need to be purchased. These companies cultivate brand loyalty among consumers in order to maintain sales.

Data on durable goods is usually readily available from government agencies that monitor the sale and movement of goods and services. It is also usually included in economic reports in the news because it can be a valuable indicator. When sales of these goods drop, it typically indicates that people have less money to spend and that people may be focusing on repairing and maintaining their hard goods rather than replacing them. When sales increase, there is more cash and consumers can buy new items faster. An increase in demand for these products also increases the demand for raw materials, which can have a knock-on effect on the economy.




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