What the $3-$30-$300 Shift Means for the Lighting Industry

Lighting Industry Shift Controls

 

September 06 2016

Charles Knuffke

Many have heard about the “$3-$30-$300” rule (though in some markets it’s called the “$8-$80-$800” rule), which relates to the magnitude of certain expenses required to conduct business in a commercial space. Though the numbers may vary we can slice the cost of doing business into three segments. 

Picture an inverted triangle: the first layer from the bottom, the “$3” is the total cost of energy per square foot to run the business; the second layer or “$30” is the cost of the commercial space per square foot; and the third layer at the top is “$300” and is the cost per employee. 

This rule has often been applied when talking about energy or sustainability programs and improvements like lighting, and how it affects these three areas (most importantly regarding cost savings and productivity increases). 

While a 5% improvement in energy efficiency equals a savings of $.15 per square foot, the same percentage of improvement in productivity equals savings of $15 per square foot. So, the biggest value and opportunity has always been in the “$300” layer of people and productivity. Though energy savings cannot be directly correlated to increased productivity, in the lighting controls industry we’ve been able to balance energy-efficient lighting and the customer and end-user experience (e.g. comfort, safety, productivity, etc.). And there have been studies that have been done that support increases in productivity with energy efficiency improvements, especially in the area of lighting controls.

There is a new opportunity in the top people and productivity segment and that is human centric lighting — a topic that has received a lot of attention in our industry in the last few years. There are many fields that are interested in colour tunable or tunable white solutions — commercial, education, healthcare, hospitality, retail, and the list goes on — to help improve productivity, well-being, comfort, and more. 

For us, the hope is that we can take the lighting controls that are mandated, which affect cost of energy per square foot ($3), and value in the productivity segment ($300). While human centric lighting is still in the early stages, I believe that there will be telling research about the productivity benefits in the near future. We are seeing more studies, trials and solutions and technologies coming into the market. We need to understand the productivity and cost benefits further and be able to accurately quantify those benefits.

We also want to make the point that, in order to achieve the maximum benefits, a space has to have great lighting. You can’t achieve great lighting by adding controls to a space with adequate lighting.

In addition to human centric lighting, there are still future opportunities to create a good foundation for good lighting and control that help in this new transformative era for our industry. 


 

Charles Knuffke is Systems VP/Evangelist, Wattstopper, Legrand. For the past 30+ years, Charles has worked with engineers, contractors, distributors and owners to design, specify, and start up lighting control systems for almost every kind of commercial and industrial project. After being in sales for most of his career, Charles is Systems Vice President and Evangelist for the Wattstopper product line, overseeing all product activity relating to the company’s Digital Lighting Management System, and managing three marketing directors and product line managers.

 

Related Articles


Changing Scene


Design

  • Axis Lighting: Hagersville Library, ON – Lighting Project Highlight

    Axis Lighting: Hagersville Library, ON – Lighting Project Highlight

    The newly opened Hagersville Library + Active Living Centre brings together community, learning, and wellness within a flexible, multi-use environment. The facility includes a 3,900-sf library, 2,000 sf atrium, 840 sf program room, and a 4,855 sf multi-functional rental space designed to support a wide range of activities. Axis Lighting’s Zen series was selected to… Read More…

  • Artika: What Are Lumens in Lighting? How to Read Brightness Specs Like a Pro

    Artika: What Are Lumens in Lighting? How to Read Brightness Specs Like a Pro

    Lumens measure the total amount of visible light a bulb or fixture produces, so more lumens means a brighter light. Shopping for lighting used to be simple. You grabbed a 60-watt bulb for the bedroom, a 100-watt bulb for the kitchen, and called it a day. Today, with energy-efficient LEDs, watts no longer tell you… Read More…


New Products

  • JDRF Electromag: The Autonomy Touch Screen – Lighting Control Solution

    JDRF Electromag: The Autonomy Touch Screen – Lighting Control Solution

    The Autonomy Touch Screen automatically pairs with co-located sensors and updates the GUI based on the lighting arrangement grouping configuration. Users can pair their smartphone to the Touch Screen through NFC with a simple tap to gain access to the lighting system from the mobile application. The Touch Screen provides a visual interface to control… Read More…

  • Eralux: ALPS E3 HYDRO – Backlit Flat Panel

    Eralux: ALPS E3 HYDRO – Backlit Flat Panel

    The ALPS E3 series is a backlit flat panel designed with optimal LED placement to ensure a uniformly lit space. It features a switchable CCT and power driver that allows endless flexibility at the install site, as well as a 125 LPW performance. The additional Level 2 NSF rating of the ALPS E3 HYDRO makes… Read More…