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

                                      Mar 27, 2023 - Architecture Billings Soften
                                      • Demand for building design services dropped in February, according to a March report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 48 in February from January’s reading of 49.3 in January. Any reading of 50 or more indicates growth in architectural billings. However, the pace of new project inquiries and new design contracts continued to improve. The AIA’s Chief Economist, Kermit Baker said, “The combination of an unsettled economy and high interest rates is causing investors and property owners to take a closer look at their plans for construction projects. While this is producing delays for some projects under design, architecture firms are reporting that prospects for future project work remain generally positive.” By major sector, billings index growth in February was mostly in contraction territory: mixed practice was 57.0, institutional was 46.9, commercial/industrial was 45.8, and multi-family residential was 46.2.
                                      • Tight existing home inventories are pushing buyers into the new home market, which helped move home builder confidence higher in March, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose two points to 44 in March 2022 2022, although the HMI remained in bearish territory. Any HMI reading over 50 indicates that more builders see conditions as good than poor. While stress in the US financial system pushed mortgage interest rates down, affordability is still a significant roadblock to homeownership for many. The NAHB said a side effect of the increased pressure on regional banks would be a further tightening of acquisition, development, and construction (AD&C) loans for home builders.
                                      • Mortgage rates dipped after the collapses of Silicon Valley Bank and Signature Bank and the rescue of First Republic Bank, but housing industry watchers are uncertain if lower rates will persist long enough to provide much relief from the affordability issues that have slowed the US housing market, according to Yahoo Finance. Redfin chief economist Daryl Fairweather told Yahoo Finance, “There's still a lot of uncertainty, but in the near term, I do expect mortgage rates to drop. And I expect buyers to take advantage of those mortgage rates because we've seen buyers be incredibly sensitive to those interest rates.” However, some industry insiders suggest that rates would need to drop and stay low for a sustained period to lure more buyers into the market. On March 22, the Federal Reserve approved an interest rate increase of a quarter-percentage point but signaled the Fed’s rate hike strategy for taming inflation could be on hold pending the stabilization of the banking sector, according to The Wall Street Journal.
                                      • In their recent fourth-quarter reporting, home improvement retail giants Home Depot and Lowe’s warned of weaker results in 2023 as consumers pull back on remodeling and shift more spending to services. Lowe’s CEO said consumers have grown more cautious amid inflation and higher interest rates. Home Depot also expects home improvement demand to moderate as spending shifts to experiences such as dining out and travel. Lowe’s said it estimates its same-store sales to, at best, be flat for 2023 and could drop by as much as 2%. Home Depot plans to invest $1 billion in higher wages for hourly workers, which it expects will contribute to a mid-single-digit drop in the company’s adjusted per-share earnings in 2023.
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