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 1,000 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.

Competition From Imports

Domestic lighting equipment manufacturers face stiff competition from imported products, which account for a sizable percentage of the US market.

Evolving Technology And Obsolescence

The development of each new generation of lighting technology creates the risk of product obsolescence and rapidly falling prices.

Industry size & Structure

The average lighting equipment manufacturer operates out of a single location, employs 41 workers, and generates $13 million annually.

    • The lighting equipment manufacturing industry consists of about 1,000 firms that employ 42,000 workers and generate $13.5 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 (General Electric), Eaton, OSRAM Sylvania and Philips (Signify).
                                      Industry Forecast
                                      Lighting Equipment Manufacturers Industry Growth
                                      Source: Vertical IQ and Inforum

                                      Recent Developments

                                      Nov 1, 2022 - Remodeling Market Softens
                                      • The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the third quarter of 2022 was 77, down 10 points from the third quarter of 2021, according to an October report by the National Association of Home Builders (NAHB). In the third quarter, 23% of remodelers said conditions were worse than they were three months earlier, 10% said they were better, and 67% said they were about the same. While the RMI reading for Q3 2022 dropped from a year earlier, overall conditions remained positive amid rising home equity, durable work-from-home trends, and aging housing stock. The NAHB expects a slight uptick in remodeling activity in 2023 as new home construction continues to slow.
                                      • The Dodge Momentum Index (DMI) increased 5.7% in September 2022 to 183.2 (2000=100), up from the revised August reading of 173.4. The DMI Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component increased by 2.9%, and institutional rose by 11.7%. Data center projects boosted the commercial planning pipeline. The institutional sector improved amid a growing pipeline of research and development laboratory projects in the education sector, as well as healthcare and recreation projects. Developers and project owners continue to see healthy demand, despite recession concerns, although continued high inflation has the potential to blunt the flow of new projects.
                                      • New single-family home sales decreased 10.9% month over month and declined 17.6% year over year in September 2022, according to the US Department of Commerce. On a year-to-date basis, new home sales were down 14.3% in the first nine months of 2022 compared to the same period in 2021. With mortgage interest rates nearing 7%, a lack of affordability continues to weaken demand for new homes.
                                      • In August, President Biden signed the Inflation Reduction Act (IRA) spending package, which includes tax credits for energy efficiency retrofits for commercial and institutional buildings. Beginning in 2023, the IRA will expand the 178D Energy Efficient Buildings Tax Deduction from $1.88 per square foot to $5.00 per square foot, according to Jack Roberts of Globe St. According to Mr. Rogers, “The 179D deduction has a tiered system of energy-use reductions that are required for the full deduction; it also allows fractional deductions for partial compliance. To comply fully, buildings have to reduce the energy and power cost of interior lighting, HVAC and hot-water systems by 50% or more.”
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