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 960 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 41 workers, and generates $13 million annually.

    • The lighting equipment manufacturing industry consists of about 960 firms that employ 39,600 workers and generate $12.8 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
                                      Source: Vertical IQ and Inforum

                                      Recent Developments

                                      Apr 2, 2024 - Steady but Slow Industry Growth
                                      • The lighting equipment manufacturing industry is expected to experience slow but steady sales growth in the coming years after posting anticipated negative growth in 2024. The industry’s year-over-year sales increased 2.1% in 2023 after rising 4.9% in 2022, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to drop to -1.2% in 2024, then see weak but steady average annual growth of about 0.8% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
                                      • New single-family home sales fell 0.3% month-over-month but were up 5.9% year-over-year in February 2024, according to the US Department of Commerce. While a rise in interest rates in February slowed new home sales, the overall market is gaining ground amid tight inventories of existing homes for sale, according to Reuters. Lower home prices may also lure buyers; the median new home sales price in February was $400,500, down 3.5% from January 2024. February’s median home price was also the lowest in two and a half years. To attract buyers, builders are reducing home sizes to make them more affordable while offering discounts and other incentives.
                                      • The total value of nonresidential building construction starts decreased a seasonally adjusted 16% in February from January, according to Dodge Construction Network. The drop was led by a 28% decrease in manufacturing projects. Commercial construction starts were off by 3% in February amid fewer warehouse starts, and institutional projects saw a 19% decline in starts amid weakness in the transportation and education buildings segments. Residential construction starts fell 2% in February as single-family saw a 5% gain but multifamily was down by 12%. Dodge Construction Network chief economist Richard Branch said, “Construction activity was hit hard by higher rates and more restrictive credit standards. Starts struggled over the past several months as the lagged effect of higher rates impacted projects moving forward through the planning process. Additionally, the significant deficit of skilled labor led to further delays – especially in the manufacturing sector. While optimism should prevail in the second half of the year as the Federal Reserve begins to cut rates, some sectors like commercial, will make little headway over the remainder of the year.”
                                      • Home builder confidence improved in March amid a lack of existing homes on the market and moderating mortgage rates that remained below 7%, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose three points to 51 in March 2024, which marked the highest HMI reading since July 2023 and the fourth consecutive month of strengthening confidence. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The NAHB said that while lower interest rates have improved affordability and drawn more buyers back to the market, 2024 could bring supply-side headwinds, including shortages of workers, materials, and available lots. Home builders are significant buyers of major household appliances.
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