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
Oct 3, 2024 - Architectural Billings Decline
- Demand for building design services declined in August compared to the prior month, marking continued softness for architectural billings, according to a September report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) declined to 45.7 in August from July’s reading of 48.2. Any reading of 50 or more indicates growth in architectural billings. August was the nineteenth consecutive month to see a downward trend in billings. The score for new project inquiries was flat at 52.4 in August, but the index for the value of new design contracts increased from 46.5 to 47.3. The AIA’s Chief Economist, Kermit Baker said, “Unfortunately, even the impending interest rate cuts didn’t move the needle on project inquiries or new design contracts at architecture firms. Hopefully, once the trajectory of further cuts gets clarified, delayed projects will restart, and new projects will gather momentum.
- The total value of US construction put in place fell 0.1% in August 2024 compared to the prior month, according to the US Census Bureau. Residential spending declined 0.3% and nonresidential spending increased 0.1%. In the nonresidential buildings segment, growth was led by communication, which saw growth of 1.3%. Amusement and recreation spending increased 0.9%, and lodging spending rose 0.8%. Spending on public safety projects grew by 0.6%, and healthcare spending rose by 0.1%. Construction spending for office, manufacturing, and transportation each rose 0.1%. Commercial spending fell 0.5% in August, while educational and office spending fell 0.2% and 0.1%, respectively.
- The effort to reshore strategic segments of the US manufacturing sector is attracting investors who hope to cash in on the resurgence, according to The Wall Street Journal. US and foreign firms have earmarked nearly half a trillion dollars to construct new factories to build semiconductors, electric cars, and other products, according to real estate data analytics firm Green Street. Property developers are flocking to the Sunbelt and Rustbelt where the new manufacturing projects are springing up. Developers are betting that manufacturing investments will have knock-on effects for housing, shopping centers, and other development opportunities. The manufacturing boom is a welcome turn of fortune for developers as the office sector languishes due to hybrid work, and the retail real estate market has been lackluster in recent years.
- Home builder confidence in the single-family market improved in September amid moderating mortgage interest rates, 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 41 in July 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. September’s gain in the HMI followed four consecutive months of declines. The HMI survey also showed that 32% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 5% was the lowest since July 2022. However, while the Fed’s recent rate cut will reduce the cost of land development and construction loans, builders are seeing increased competition from existing home listings in some markets.
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