As new legislation boosts demand for energy-efficient lighting, revenue will recover.
Los Angeles, CA (PRWEB) October 19, 2013
After a rough patch during the recession in which revenue fell a whopping 22.6% in 2009 and 4.1% in 2010, the Lighting Fixtures Manufacturing industry finally turned the corner in 2011 and is expected to grow further in 2013. IBISWorld expects industry revenue to increase 2.3% over the year to $10.3 billion. For most of the past five years, however, the industry performed poorly, as downstream demand from residential and nonresidential construction markets plummeted.
Import competition also adversely affected industry players over the five years to 2013, as rising manufacturing capabilities in Asia and Latin America have shifted production overseas. Accorrding to IBISWorld Industry Analyst Sean Windle, “Manufacturers in these areas enjoy lower labor and overhead costs and can therefore offer lower prices on comparable products, eroding sales for domestic producers.” To remain competitive, US operators have been forced to reduce their markups. This practice has led to falling profitability. With constraints on profitability, industry manufacturers consolidated facilities to minimize overhead costs. As such, the number of establishments decreased an average of 0.7% per year to 1,051 facilities in the five years to 2013.
The industry is poised for stronger growth over the next five years, thanks to a fast-improving construction sector, which will boost demand for lighting fixtures. Also brightening the industry's future is the transition of businesses and households from traditional incandescent lightbulbs to energy-efficient light sources. “As demand for energy-efficient lightbulbs increases and more customers replace their current fixtures, sales are expected to rise,” says Windle.” At the heart of this trend is federal legislation to phase out incandescent lightbulbs beginning in 2012. In particular, energy-efficient light-emitting diodes (LEDs) are increasing in popularity since they provide greater flexibility in terms of color, design and architectural integration. As a result of these factors, IBISWorld forecasts industry revenue will increase in the five years to 2018.
The Lighting Fixtures Manufacturing industry has a medium level of market share concentration. The major companies in this industry are Koninklijke Philips Electronics, Acuity Brands, Cooper Industries Ltd. and Hubbell Inc. Over 68.0% of companies in the industry employ fewer than 20 workers, while less than 10.0% employ more than 100 people.
For more information, visit IBISWorld’s Lighting Fixtures Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Lighting Fixtures Manufacturing industry manufactures electric lighting fixtures, nonelectric lighting equipment, lighting fixture components and lampshades made of metal, paper or textiles. The industry excludes establishments that manufacture lightbulbs and tubes, glass lighting fixtures, vehicular lighting equipment, current-carrying wiring devices and lampshades made of plastic.
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.