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

  • Current Names Steve Harris As New CEO, Barry Webb As New CFO May 2023

    June 7, 2023 Harris and Webb will focus on improving the company’s ease of doing business and continue Current’s mission of putting the customer first with the industry’s most expansive portfolio of lighting and control products. Current announced today that Steve Harris has been appointed as the new CEO of the company, effective May 30, 2023. An experienced business… Read More…

  • Eureka Lighting Wins Best of the Best Red Dot Award for Tangram-Trace

    June 7, 2023 Eureka, an established leader in decorative lighting solutions, is pleased to announce its Tangram-Trace luminaire was awarded the Red Dot: Best of the Best distinction in the 2023 Product Design competition. Tangram-Cut, Tangram-Essential, Tangram-Tact, and Arena luminaires also received 2023 Red Dot Awards for Product Design. While Eureka has been honored with… Read More…


Design

  • Gros Horloge Brought to Life by Lumenpulse Luminaires

    Gros Horloge Brought to Life by Lumenpulse Luminaires

    June 5, 2023 The intricate and ornate details of the Gros Horloge are brought to three-dimension life in the nightscape of Rouen thanks to the outputs, optics, and integrity of the Lumenpulse luminaires used in its lighting design. Location: Rouen, France Market: Arts + Culture Photographer: Xavier Boymond Partner: Eclipse Diffusion More information available here Related Article Lumenpulse Announces… Read More…

  • Captivating Hospitality Lighting: Inspiration & Ideas from MP Lighting

    Captivating Hospitality Lighting: Inspiration & Ideas from MP Lighting

    June 1, 2023 Great ambiance can only be created by great luminaires, and lighting has a huge role when it comes to guest experience in the hospitality industry. A well-lit lobby with task lighting is both functional – as guests need to check in, look over documents and sign them – and visually appealing –… Read More…


New Products

  • Discover the Low Profile Blink Pro Surface Mounted Downlight from Satco Nuvo

    Discover the Low Profile Blink Pro Surface Mounted Downlight from Satco Nuvo

    June 7, 2023 Setting the Standard in Professional Lighting Form follows function in almost all rules of design. From designer aesthetics to “state-of-the-art” technology, Blink embodies this concept entirely. Contemporary yet familiar, Blink is a versatile offering, suitable for nearly every environment. Encompassed in the sophisticated driver platform, advanced line conditioners and EMI filters ensure… Read More…

  • Eureka Lighting Wins Best of the Best Red Dot Award for Tangram-Trace

    Eureka Lighting Wins Best of the Best Red Dot Award for Tangram-Trace

    June 7, 2023 Eureka, an established leader in decorative lighting solutions, is pleased to announce its Tangram-Trace luminaire was awarded the Red Dot: Best of the Best distinction in the 2023 Product Design competition. Tangram-Cut, Tangram-Essential, Tangram-Tact, and Arena luminaires also received 2023 Red Dot Awards for Product Design. While Eureka has been honored with… Read More…