Lighting Equipment Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 950 lighting equipment manufacturers in the US produce bulbs, lighting elements, lighting fixtures, and related parts and components. Major revenue categories include commercial, industrial, and institutional lighting fixtures; miscellaneous lighting equipment; residential lighting fixtures, and electric lamp bulbs and parts. Firms may also produce devices or systems that monitor and manage light systems.
Evolving Technology And Obsolescence
The development of each new generation of lighting technology creates the risk of product obsolescence and rapidly falling prices.
Competition From Imports
Domestic lighting equipment manufacturers face stiff competition from imported products, which account for a sizable percentage of the US market.
Industry size & Structure
The average lighting equipment manufacturer operates out of a single location, employs 40 workers, and generates $14 million annually.
- The lighting equipment manufacturing industry consists of about 950 firms that employ 38,000 workers and generate $13.7 billion annually.
- The industry is concentrated; the top 50 companies account for nearly 68% of industry revenue. The electric lamp bulb and part manufacturing sector is highly concentrated; the top 20 companies account for 93% of sector revenue.
- The commercial, industrial, and institutional lighting manufacturing sector accounts for 43% of companies and 41% of industry revenue. The residential electric lighting fixture manufacturing sector accounts for 25% of companies and 16% of revenue. The miscellaneous lighting equipment manufacturing sector accounts for 26% of companies and 34% of industry revenue. The electric lamp bulb and part manufacturing sector accounts for 6% of companies and 9% of industry revenue.
- Large companies and divisions of companies with lighting equipment operations include Acuity Brands, GE Lighting (Savant), Eaton, OSRAM Sylvania, and Signify.
Industry Forecast
Lighting Equipment Manufacturers Industry Growth
Recent Developments
Dec 2, 2024 - New Home Sales Drop
- New single-family home sales declined 17.3% month-over-month and 9.4% year-over-year in October 2024, according to the US Department of Commerce. October’s new home sales were the weakest in nearly two years as hurricanes and high interest rates kept some potential buyers away, according to Reuters. Mortgage rates at the end of October rose to 6.72%, tracking the rise in 10-year Treasury yields. Concerns about inflation are leading some market observers to expect fewer Fed rate cuts in 2025. Inflation fears are also being raised by President-elect Trump’s plans to increase tariffs on imports, primarily from China, Mexico, and Canada. More robust home price growth may erode demand further; the median new home sales price in October was $437,300, up 2.5% from September and 4.5% higher than a year earlier.
- After two years of high interest rates and home prices hindering home sales, the US housing market is expected to improve in 2025 and 2026, according to a November forecast by National Association of Realtors chief economist Lawrence Yun. New home sales are forecast to increase by 11% in 2025 and 8% in 2026. Existing home sales are expected to rise 9% year-over-year in 2025 and then climb 13% in 2026. Key demand drivers include a healthy labor market and population growth. The average 30-year fixed-rate mortgage over the past 52 weeks has ranged between 6.08% and 7.44%, according to Freddie Mac. Yun says he believes mortgage rates will be near the bottom end of that range in 2025 and 2026.
- The missing-middle segment of the US multifamily housing construction market saw its biggest gain in 17 years in the third quarter of 2024, according to The National Association of Home Builders (NAHB). The missing middle, which consists of housing properties with 2-4 units, has been weak since the Great Recession. However, in the third quarter, there were 6,000 construction starts for projects with 2-4 units, more than double the amount in Q3 2023. The missing middle’s share of overall multifamily construction was just over 6% in Q3 2024, down considerably from about 11% that was typical between 2000 and 2010. While the NAHB notes that missing middle developments will likely continue lagging absent zoning reforms, the recent increase is encouraging.
- The total value of nonresidential building construction starts increased 14% in October from September, according to Dodge Construction Network. The gain was led by a 114% increase in manufacturing starts as several large projects began. October’s institutional starts rose 13% amid gains in education and transportation. Commercial construction starts fell 3% as robust hotel and parking structure starts were not enough to offset weakness in other segments. Residential building starts were down 3% in October as single-family starts dropped 4% and multifamily declined 2%. Dodge Construction Network chief economist Richard Branch said, “Construction starts have yet to see the impact of falling interest rates. Several more rate cuts will be needed to start moving construction projects through the planning process to start. Clarity, though, has improved now that the election is in the rearview mirror; however, developers may wait until the full scope of President-elect Trump’s legislative agenda comes into better focus.”
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