Q3 Lighting Updates

LDS CS q2 pulse 400

Sept 19, 2019

Summertime has come to an end and now it’s the sprint to the end of the year. The time when many are doing two jobs — seeking sales opportunities to end the year on a high note and planning for 2020. And, in the lighting arena, for some that sell into the energy efficient market that is subsidized by utilities, it’s the time when sales activity typically increases due to the “use it or lose it” nature of these funds (and the need to spend the money).

In the lighting world we also have

  • questioning Q3 performance as some business was pulled into Q2 due to the threatened Mexico tariffs and the increase of the LED/lighting tariffs in June
  • questions regarding advanced stock purchases by distributors in June to take advantage of pre-tariff pricing
  • a seeming slowing of the industrial lighting market, potentially a second derivative result of an industrial slowdown that could be impacted by global economic slowdown (a decline in OEM exports) as well as tariffs (industrial companies’ willingness to make decisions to invest in their businesses?)
  • According to a LinkedIn post from Al Hoch, who shared a regional manager’s post, there are some issues with Bravo LED, Eveready LED Lighting and Way to Go Lighting
  • Some reporting a construction slowdown
  • Acuity has a new President and its senior vice president of connected building software left the company in July (yes, there is already a replacement).
  • Rab implemented, and then retracted, a price increase, according to this letter that was reported by NAILD’s “A Light Read”: https://edisonreport.com/wp-content/uploads/2019/08/Update-RAB-Price-Increase-Lamps-23-August-2019.pdf
  • conglomerate lighting companies continuing to seek the right formula to gain more space in distributor warehouses (stock business) to displace secondary, tertiary and other lines. Some have added regional managers/specialists focused in this area, some have lighting reps adding stock-focused personnel, some trying to add a couple of percentage points to rebates and hoping corporate management pushes down edicts to support a line.)
  • and acquisitions such as 1) Acuity purchasing 5 companies through Luminaires Group, which had sales approaching $100 million 2) Luminii acquired Optical Arts 3) OSRAM sold Siteco 4) Private equity firm Core Industrial Partners acquiring Texas Fluorescents / Saylite / Moburn

So, lots going on. With lighting representing 25-40% of a distributor’s sales and probably the largest gross margin dollar contributor to a distributor, knowing how your performing versus an industry benchmark helps provide perspective.

David Gordon is President of Channel Marketing Group. Channel Marketing Group develops market share and growth strategies for manufacturers and distributors and develops market research. CMG’s specialty is the electrical industry. He also authors an electrical industry blog, www.electricaltrends.com. He can be reached at 919-488-8635 or dgordon@channelmkt.com.

Related Articles


Changing Scene

  • LEDucation 2024 – Concluded with Record-Breaking Attendance

    The LEDucation Trade Show and Conference, organized by the Designers Lighting Forum New York, wrapped 2024 with record-breaking attendance, welcoming more than 10,000 registrants from all aspects of the lighting industry. LEDucation celebrated its 18th year in New York City March 19–20 at the New York Hilton Midtown, becoming North America’s largest annual lighting industry… Read More…

  • Part 1: How Many Studies Does it Take to Change a Lightbulb?

    March 18, 2024 How studies in vision inform lighting standards at Night By Noah Sabatier Changing a light bulb in our home is perhaps the most simple task in which we can still credit ourselves for performing household maintenance. The amount of thought such an operation receives rarely extends beyond looking for the most efficient… Read More…


Design

  • Case Study: Windsor Family Credit Union (WFCU) with Salex SW

    Case Study: Windsor Family Credit Union (WFCU) with Salex SW

    February 6, 2024 Since 1940, WFCU Credit Union is a prominent and forward-thinking financial institution based in Windsor and Essex County. For over 80 years, WFCU has been dedicated to serving Ontario residents, community, organizations, small businesses, commercial entities, and public institutions. Their new headquarters in Kitchener was created as they continue to grow their… Read More…

  • Coaticook Suspended Footbridge: An Ever-Changing Luminous Canvas, Painted by Nature

    Coaticook Suspended Footbridge: An Ever-Changing Luminous Canvas, Painted by Nature

    December 5, 2023 At 170 m (554 ft) long and 50 m (160 ft) high, the Coaticook Canyon Bridge at Parc de la Gorge de Coaticook is one of the longest suspension footbridges in North America and one of the most popular tourist attractions in the Eastern Townships. For several years, the Parc de la… Read More…


New Products

  • Liteline ORBIT 2″ Gimbal Recessed Fixture

    The ORBIT is a 5 watt 2″ gimbal recessed light fixture for retrofit applications, with 360° rotation and 80° tilt. It is a high-performance, easy to install downlight solution that offers good light output, energy-efficiency and streamlined design. Suitable for wet locations and ideal for vaulted ceiling and soffit installations. BodyDurable aluminum body with 360°… Read More…

  • Acclaim Lighting Introduces All-Weather Terra Drum with Multiple Color Options

    Acclaim Lighting introduces the Terra Drum series, rugged, all-weather inground, drive-over ready rated fixtures designed for recessed façade and tree lighting applications.  Available in 15-, 30- and 60-watt versions, Terra Drums have a drive-over rating of up to 6,000 lbs. (2,721kg). They are offered in 2400K, 2700K, 3000K, 3500K, 4000K, Dynamic White (2700K-6000K), Quad Spectrum… Read More…