Lighting Equipment Manufacturing
Description
Companies in this industry manufacture electric light bulbs and tubes, as well as lighting fixtures, lamp shades, and other components and parts. Major companies include Acuity Brands, Hubbell, and TCP Lighting (all based in the US), as well as OSRAM (Germany), Signify (Netherlands), and Zumbotel Group (Austria).
Global demand for lighting fixtures is forecast to reach about $125 billion in 2034, at a compound annual growth rate (CAGR) of 4.2%, according to Global Market Insights (GMI). High growth is expected to come from the Asia/Pacific region; moderate growth is forecast for Africa and the Middle East.
The US lighting equipment manufacturing industry includes about 1,100 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $14 billion.
COMPETITIVE LANDSCAPE
Demand depends primarily on residential, industrial, and commercial construction activity. Profitability depends on efficient operations. Large companies have advantages in purchasing power, manufacturing volume, and distribution efficiencies. Small companies compete by offering specialized products and superior customer service in regional markets. The US industry is concentrated: the largest 50 companies account for about 70% of revenue.
Exports, mainly to Canada and Mexico, account for about 20% of US production. Imported lighting products make up about 60% of the US market. Leading import sources for lighting products are China and Mexico.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are commercial-and institutional-type electric lighting fixtures (about 35% of industry revenue), outdoor lighting equipment (about 10%), and wholesale sales of electrical, communication, and lighting system products (about 10%). Lighting fixtures consist of metal, glass, and plastic products in various decorative styles. Lamp bulbs consist primarily of incandescent, fluorescent, light-emitting diode (LED), and three types of high-intensity discharge (HID) bulbs: metal halide, sodium, and mercury vapor.
Residential fixtures may be highly decorative while industrial, commercial, and institutional applications tend to be more basic. Portable fixtures, such as table and floor lamps, are used primarily in residential applications. Incandescent bulbs are the primary choice for residential applications, while longer-lasting, more expensive, fluorescent and HID bulbs dominate industrial, commercial, and institutional applications.
Raw materials for lamp bulbs include glass, tungsten, copper, and inert gases such as argon and nitrogen. Lighting fixture manufacturers use steel, aluminum, copper, brass, and plastics as components of finished products.
Incandescent lamp bulbs are the highest unit volume form of lighting due to their low cost to manufacture and install. The incandescent bulb has three basic components: the filament, bulb, and base. The filament is drawn by pulling tungsten mixed with a binder material through a die into a fine wire form, which is then annealed to soften the wire and welded to lead-in wires. Glass bulbs are produced by moving a continuous ribbon of glass past air nozzles that blow the glass through holes in the conveyor belt into molds, creating the glass casings. After the glass casings are cooled and cut, they're coated with silica to reduce glare from the uncovered filament. Manufacturing the base also uses molds to provide the screw shape that fits the socket of a light fixture. Automated machines fit the three pieces together, and then they're sealed, tested, and packaged for shipment.
Though not yet as common as incandescent bulbs, fluorescent, LED, and HID bulbs are more efficient. Fluorescent, LED, and HID bulbs require a ballast to start and regulate the flow of current so that the bulb operates at maximum efficiency. Advantages of these bulbs include greater energy efficiency, better lighting disbursement, less heat generation, and longer life. Compact fluorescent lamp (CFL) and LED bulbs are increasingly replacing standard incandescent bulbs. HID bulbs are suited for use outdoors and in large indoor settings.
Lighting fixtures are manufactured using a series of steps that may include cutting, bending, machining, spinning, anodizing, polishing, and painting, depending on the materials used and final design configurations.
Larger companies have their own distribution centers. Smaller companies use third party distribution centers or ship direct from the factory. Transportation is by common carrier or company-owned vehicles.
Global demand for lighting fixtures is forecast to reach about $125 billion in 2034, at a compound annual growth rate (CAGR) of 4.2%, according to Global Market Insights (GMI). High growth is expected to come from the Asia/Pacific region; moderate growth is forecast for Africa and the Middle East.
The US lighting equipment manufacturing industry includes about 1,100 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $14 billion.
COMPETITIVE LANDSCAPE
Demand depends primarily on residential, industrial, and commercial construction activity. Profitability depends on efficient operations. Large companies have advantages in purchasing power, manufacturing volume, and distribution efficiencies. Small companies compete by offering specialized products and superior customer service in regional markets. The US industry is concentrated: the largest 50 companies account for about 70% of revenue.
Exports, mainly to Canada and Mexico, account for about 20% of US production. Imported lighting products make up about 60% of the US market. Leading import sources for lighting products are China and Mexico.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are commercial-and institutional-type electric lighting fixtures (about 35% of industry revenue), outdoor lighting equipment (about 10%), and wholesale sales of electrical, communication, and lighting system products (about 10%). Lighting fixtures consist of metal, glass, and plastic products in various decorative styles. Lamp bulbs consist primarily of incandescent, fluorescent, light-emitting diode (LED), and three types of high-intensity discharge (HID) bulbs: metal halide, sodium, and mercury vapor.
Residential fixtures may be highly decorative while industrial, commercial, and institutional applications tend to be more basic. Portable fixtures, such as table and floor lamps, are used primarily in residential applications. Incandescent bulbs are the primary choice for residential applications, while longer-lasting, more expensive, fluorescent and HID bulbs dominate industrial, commercial, and institutional applications.
Raw materials for lamp bulbs include glass, tungsten, copper, and inert gases such as argon and nitrogen. Lighting fixture manufacturers use steel, aluminum, copper, brass, and plastics as components of finished products.
Incandescent lamp bulbs are the highest unit volume form of lighting due to their low cost to manufacture and install. The incandescent bulb has three basic components: the filament, bulb, and base. The filament is drawn by pulling tungsten mixed with a binder material through a die into a fine wire form, which is then annealed to soften the wire and welded to lead-in wires. Glass bulbs are produced by moving a continuous ribbon of glass past air nozzles that blow the glass through holes in the conveyor belt into molds, creating the glass casings. After the glass casings are cooled and cut, they're coated with silica to reduce glare from the uncovered filament. Manufacturing the base also uses molds to provide the screw shape that fits the socket of a light fixture. Automated machines fit the three pieces together, and then they're sealed, tested, and packaged for shipment.
Though not yet as common as incandescent bulbs, fluorescent, LED, and HID bulbs are more efficient. Fluorescent, LED, and HID bulbs require a ballast to start and regulate the flow of current so that the bulb operates at maximum efficiency. Advantages of these bulbs include greater energy efficiency, better lighting disbursement, less heat generation, and longer life. Compact fluorescent lamp (CFL) and LED bulbs are increasingly replacing standard incandescent bulbs. HID bulbs are suited for use outdoors and in large indoor settings.
Lighting fixtures are manufactured using a series of steps that may include cutting, bending, machining, spinning, anodizing, polishing, and painting, depending on the materials used and final design configurations.
Larger companies have their own distribution centers. Smaller companies use third party distribution centers or ship direct from the factory. Transportation is by common carrier or company-owned vehicles.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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