As new legislation boosts demand for energy-efficient lighting, revenue will recover.
New York, NY (PRWEB) February 03, 2014
After a rough patch during the recession in which revenue fell heavily in 2009 and 2010, the Lighting Fixtures Manufacturing industry finally turned the corner in 2011 and is expected to grow consistently through 2014. For example, in 2014, industry revenue is expected to increase. “The industry experienced a modest recovery over the past five years as returning demand from residential and nonresidential construction markets helped pull lighting fixture manufacturers out of the recession,” according to IBISWorld Industry Analyst Will McKitterick. As such, industry revenue is expected to grow at an annualized rate in the five years to 2014.
Despite returning demand from the construction market, industry profitability was tempered by high import competition from overseas manufacturers over the period. Rising manufacturing capabilities in Asia, Mexico, Colombia, and Brazil have shifted production overseas. Manufacturers in these areas enjoy lower labor and overhead costs and can therefore offer lower prices on comparable products, challenging sales for domestic producers. As such, US operators have consolidated facilities and reduced employment to minimize overhead and maintain competitive prices. The number of industry employees shrunk accordingly over the five-year period by an annualized rate. Nevertheless, domestic producers made modest gains in profitability over the period. Having dropped from 2009 to 2011, margins are expected to rebound in 2014.
The Lighting Fixtures Manufacturing industry has a medium level of market share concentration, with the four largest companies expected to account for nearly half of industry revenue in 2014, up from 2009. “The industry is poised for stronger growth over the next five years as the fast-improving construction sector continues to boost demand for lighting fixtures,” says McKitterick. Also brightening the industry's future is the transition of businesses and households from traditional incandescent light bulbs to energy-efficient light sources. At the heart of this trend is federal legislation that began phasing out the manufacturing of incandescent light bulbs in 2012. Regulation is expected to fuel demand for new energy-efficient technologies such as compact fluorescent light (CFL), organic light-emitting diode (OLED) and light-emitting diode (LED) compatible fixtures in the coming years. As a result of these factors, IBISWorld estimates industry revenue will increase at an average annual rate in the five years to 2019.
For more information, visit IBISWorld’s Lighting Fixtures Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Lighting Fixtures Manufacturing manufactures electric lighting fixtures, nonelectric lighting equipment, lighting fixture components and lampshades made of metal, paper or textiles. The industry excludes establishments that manufacture light bulbs and tubes, glass lighting fixtures, vehicular lighting equipment, current-carrying wiring devices and lampshades made of plastic.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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