Prospects for the Lighting Fixtures Manufacturing industry have brightened since the economic recession
New York, NY (PRWEB) April 18, 2014
The Lighting Fixtures Manufacturing industry took a beating during the recession. Revenue declined dramatically as the simultaneous collapse of the US and Canadian housing markets dried up demand for lighting fixtures. Canadian exports, which accounted for 31.4% of industry revenue in 2009, dropped by 8.4% due in large part to reduced demand from the United States, Canada's primary trading partner. At the same time, Canadians at home turned to less expensive foreign imports in an attempt to save on lighting products during the recession. As a result, domestic manufacturers were squeezed as revenue fell by double digits for two consecutive years in 2009 and 2010.
According to IBISWorld Industry Analyst Will McKitterick, “Prospects for the Lighting Fixtures Manufacturing industry have brightened since the economic recession.” After a lull in business from downstream markets, demand for fixtures from new commercial and residential construction took off over the past five years. Wages rose and the unemployment rate dropped as the economy slowly returned to form, encouraging consumers to spend on lighting fixture renovation and refurbishment projects forestalled during the recession. Additionally, new government regulation banning the manufacture and import of new incandescent light bulbs helped increase demand for new energy efficient fixture technologies. However, while these factors have helped the Lighting Fixtures Manufacturing industry improve, the recession proved severe enough to cause the industry to decline somewhat over the past five years at an average annual rate of 0.1% to $1.2 billion over the period.
“The future is bright for the Lighting Fixtures Manufacturing industry,” says McKitterick. Downstream demand from domestic markets continues to grow just as foreign demand for lighting fixtures picks up abroad. At the same time, the industry's evolution over the next five years will be greatly affected by legislation enacted in 2012 banning the manufacture of incandescent light bulbs and fixtures. Demand for energy efficient fixtures is expected to increase dramatically during the period, allowing larger industry operators in particular to capitalize on sales of products used in retrofitting and renovation projects
For more information, visit IBISWorld’s Lighting Fixtures Manufacturing in Canada 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 light bulbs and tubes, glass lighting fixtures, vehicular lighting equipment, current-carrying wiring devices and lampshades made of plastic.
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