|

Q3 Pulse of Lighting Meets Expectations; Outlook Concerning

Pulse 400x275

October 11, 2022

By David Gordon

As Q3 turns to Q4 and summer turns to fall, so we can now share the results of our Q3 Pulse of Lighting survey.

For our Q3 report we heard from 200 distributors, manufacturers, manufacturer reps and lighting agents.

Overall, they reported that:

  • Sales performance for Q3 approximated the projections that they shared in Q2, which is high single digit numbers. This is consistent with the sales growth that occurred in Q2.
  • The difference, however, is that pricing increases grew at a slower rate, resulting in greater organic growth.
  • Distributors reported that the large new construction market appeared to slow whereas the small and medium new and renovation markets continued to be strong.
  • From an inventory viewpoint, a lower percent of distributors increased inventory with over 50% maintaining inventory size.
  • At the same time, less distributors reported that their backlog grew. Most reported it remained flat, indicating that supply chain issues remain. Some distributors shared that their “hold till complete” inventory has increased, inevitably requiring only a few SKUs to complete an order.
  • Distributors were asked about their through-stock sales rate. Only 33% shared that they are selling more through stock whereas 63% stated it has remained the same. At the same time, almost 40% have either reduced their inventory or have it “under consideration.” Some of this is due to product innovation / acceptance of selectable wattage and CCT products.
  • Some manufacturers shared that project sales cycles are taking longer.
  • All audiences reported that that supply chain issues persist, and end-users are open to alternatives to avoid supply chain delays.
  • Much of the design community continues to work remote, which hinders agent / reps sales interactions

Lighting Outlook for Q4 and Beyond

Looking towards Q4, and beyond,

  • All audiences foresee a lighting slowdown. While there will still be growth, the growth rate slows to low single digits.
  • Most do not see price increases being implemented in Q4.
  • Both manufacturers and agents / reps report that 40-50% of lighting specifiers / design build contractors look at their future project activity over the next 6 months either slowing or that they are concerned.
  • Growth segments appear to be commercial retrofits, education, healthcare, and lighting for infrastructure projects.

We’ve also heard of manufacturers conducting promotions and “flash sales”. Cooper Lighting Solutions is currently running a promotion to help distributors “clear” residential product sales. Here’s a link to their “overstock” webpage and a link to the promotional flyer showing the discount by product family.

So, while business was “good” based upon lighting standards (other product categories are higher, however they have “benefited” from commodity price increases), there are concerns looking forward.

The complete report, with more detail, is available for only $29.

Source

Related Articles


Changing Scene

  • IES Logo

    IES Forms New IES Waterloo Section in Southwest Ontario

    January 30, 2023 The Illuminating Engineering Society’s Board of Directors has approved the Society’s newest section in southwest Ontario—IES Waterloo. The IES Waterloo Section represents IES’ growing representation in the international lighting community and a demand for lighting resources and standards on a global scale. The Waterloo Section will be overseen by its local Board… Read More…

  • Magic Lite & EFC Release Student Scholarship

    January 18, 2023 Magic Lite was thrilled to have participated in the 2022 EFC Scholarship Program and recently present the Magic Lite Future Leaders Award of $2,500 to Anthony Faustin of Sherbrook University in Montreal. As successful applicant, Anthony demonstrated leadership amongst his peers as well as in his community, and showed true entrepreneurial spirit… Read More…


Design

  • LIT Design Awards Light Art Project Winner: Integral Group

    LIT Design Awards Light Art Project Winner: Integral Group

    December 19, 2022 Prize(s) Winners in Light Art Project Company Integral Group Lead Designers Ellie Niakan + Catherine Chan Photo Credits Catherine Chan Completion Date December 21, 2021 Project Location New Westminster, British Columbia, Canada Although appearing as solitary, trees are connected to one another through vast underground systems known as mycorrhizal networks. Through these hidden systems—a symbiotic relationship between plants… Read More…

  • LIT Lighting Design Awards: Capital Park Landscape, Victoria, BC

    LIT Lighting Design Awards: Capital Park Landscape, Victoria, BC

    December 5, 2022 Located in one of Victoria’s most historic neighborhoods, the Capital Park Mixed-Use Development is made up of seven buildings stretching across three lots and is responsible for nearly an entire city block of Victoria’s downtown core. The project took place over the span of three phases and eight years. The first phase… Read More…


New Products

  • JSBT Tapered Switchable White Surface Mount Disk Light

    JSBT Tapered Switchable White Surface Mount Disk Light

    January 27, 2023 JSBT SlimBasics™ Tapered LED Disk Light Series comes in 4″ and 6″ sizes and provides even illumination where you need it most. Designed to provide good lighting quality, while also being budget friendly, the JSBT is the lowest total install cost LED solution for residential spaces. The matte white aluminum housing is… Read More…

  • 2″ Purist™ luminaires

    January 27, 2023 Meticulously designed, Purist was created with versatile light, beam, adjustability, and finish options that allow you to illuminate your environment in your light. 2″ Apertures (1.25″ with Pinhole trims). Up to 1500 lumens per lamp. 25° Vertical tilt. 2700K-4000K Color temperatures. 3000K-1800K Warm dimming. 15°-65° Beam Spreads. Wall Wash Available. For more… Read More…