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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                      Coronavirus Update

                                      Apr 21, 2022 - Manufacturing Slows In China
                                      • Domestic lighting equipment manufacturers may experience some difficulties in sourcing key components from suppliers in China. As of April 11, 87 of China’s 100 largest cities were in some form of lockdown, according to economic research firm Gavekal Dragonomics, which has been tracking lockdowns during the pandemic. According to The New York Times, the restrictions were a drag on China’s industrial output in March, and April’s results are expected to be worse.
                                      • Even as pandemic conditions wane, homeowners are expected to continue to invest in home improvements. Home remodeling spending is expected to remain strong for most of 2022 before tapering off in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 11.3% to $390 billion in the first quarter of 2022 compared to Q2 2021. On a year-over-year basis, quarterly remodeling spending levels are forecast to rise 15% in Q2, 19.7% in Q3, then moderate slightly to 17.3% in Q4 when spending will reach $430 billion.
                                      • The number of hotel projects completed, a driver of demand for lighting equipment, will increase 11% year over year in 2022, according to Lodging Econometrics.
                                      • The pandemic likely will mark the end of an era for the office sector, according to David Gilbert, CEO of real estate investment management firm Clarion Partners. Gilbert said that he expects there to be less demand for office space. “You don’t abandon the office. It’s just less of a need to be there every single day,” he said. Companies experiencing a surprisingly “seamless” transition to work-from-home during the crisis likely will adopt more flexible work arrangements for employees going forward, perhaps only requiring a trek into the office for two or three days a week, Gilbert added.
                                      • Total construction spending increased 0.5% in value month over month on an adjusted basis in February 2022, according to the US Census Bureau. Total unadjusted construction spending rose 10.4% in the first two months of 2022 compared to the same period in 2021. Residential construction spending increased 1.1% month over month in February and was up 15.5% for the first two months of 2022. Nonresidential construction spending decreased 0.1% month over month but increased 5.8% in the first two months of the year compared to the same period a year earlier.
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