Q2 2018 Pulse of Lighting Report

David Gordon

July 6, 2018

David Gordon

Earlier this year we launched our quarterly Pulse of Lighting study in conjunction with William Blair, a leading investment analyst firm. We recently received feedback from over 200 distributors, manufacturers and manufacturer reps. Key highlights of Q2 performance include 5-7% sales growth, which varies by sector. Sales growth appears to be stronger from supply (NEMRA) reps than lighting agents. Distributors continue to report a higher unit sales rate.

Additional results include the following:

  • growth segments are the small to medium sized renovation projects with industrial retrofits gaining some traction. The large new construction market is the slowest growth segment.
  • 34% stated they have increased their inventory levels
  • more reported an increase in their backlog
  • strong expectations for Q3 — above Q2 performance from both distributors and manufacturers
  • slow adoption of and requests for IoT initiatives, but decent support for lighting controls on projects
  • perhaps a decline in the share of sales for the top 7 lighting companies as distributor input report a 3.2-point decline (something we’ll watch in the future). The number of distributors sharing that 76%+ of their business was with these companies declined from 44% to 31%.  Questions: who is the beneficiary, and will the new “contractor grade” lines help these companies reacquire business?

Additionally, key comments included:

  • continued speed, and at times frustration, with the pace of new product introductions
  • some economic / marketplace concerns
  • continued concern and emphasis on imported lines
  • continued price erosion, albeit moderating a little (after a while, it needs to; otherwise, might as well give it away); more manufacturer comments lamenting price competition than distributor comments.
  • reps succeeding by “partnering” with selected distributors in a market… focusing on discretionary business
  • manufacturers are seeing about 4% continued price erosion due to competition and a continued increased mix/substitution to lower average selling price (ASP) products. Additionally, they comment about the marketplace’s challenge in selling/appreciating “value”
  • some concern regarding tariffs. Currently, there are no tariffs on lighting sub-assemblies. Therefore, U.S. OEMs will be structurally disadvantaged having to pay a higher price for aluminum, steel, and LED chips.

The full report was shared with survey respondents. To encourage survey participation there is now a nominal fee (US$19) to access the quarterly report inclusive of respondent feedback and William Blair’s analysis and recommendations.

Order the report here: www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=RNYHKSKTGG3UL

Related Articles


Changing Scene

  • RENO Lighting Announces New Vice President of Sales

    RENO Lighting Announces New Vice President of Sales

    It is with great excitement that RENO Lighting introduces Jean-Claude Lespérance as Vice President of Sales at RENO Lighting. With over 35 years of experience in the Canadian electrical industry, Jean-Claude brings extensive knowledge of the market and strong relationships with key industry stakeholders, suppliers, and customers. Holding a college diploma in Electrodynamics and a… Read More…

  • Contact Delage Announces New Partnership with Zilux

    Contact Delage: New Representation Agreement – Zilux

    Contact Delage is pleased to announce a new partnership with Zilux for the representation of their products in the regions of Montreal, Laval, Estrie, Lanaudière, Laurentides, and Montérégie. Specializing in the design of aluminum lighting and urban furniture, Zilux, a Quebec-based manufacturer, combines innovation and durability to enhance your outdoor design projects. Their expertise in… Read More…


Design

  • Light ARchitect Is Revolutionizing Lighting Design for Architects & Designers

    Light ARchitect Is Revolutionizing Lighting Design for Architects & Designers

    Traditionally, lighting design could be a tedious process, often involving physical mockups, time-consuming calculations, and static renderings using multiple software tools. With advancing technology, these traditional methods are giving way to more sophisticated tools that enhance precision, speed, and visualization. On the downside, many of the new tools are not particularly intuitive and the learning… Read More…

  • Project Story: Sainte-Thérèse High School Outdoor Lighting Upgrade

    Project Story: Sainte-Thérèse High School Outdoor Lighting Upgrade

    August 6, 2024 Built in 1980, the building that houses Sainte-Thérèse high school, in Quebec Canada, was looking a little worse for the wear. Renovation work began with two major projects: introducing a multidisciplinary sports centre, as well as redesigning the parking lots.  The employee and visitor parking lots were completely reconfigured during phase 1… Read More…


New Products

  • Amico: Lunar Night Light – Behavioral Series

    Amico: Lunar Night Light – Behavioral Series

    Behavioral Health Lunar Series Night Lights bring a soft, low-level illumination to the patient room allowing clinical staff and patients to navigate safely in the dark, evening hours. The unique faceplate has minimal protrusion from the wall and provides even light distribution for optimal sight. For ultimate convenience, the Lunar Night Light is available with… Read More…

  • Barbican: Aerie Acoustic Pendant Luminaire

    Barbican: Aerie Acoustic Pendant Luminaire

    With its design aesthetic paying tribute to the large nest of a bird of prey, typically built high in a tree or on a cliff, the Aerie fixture is a variation of our Drum luminaire, one of the most popular and versatile options from Barbican. Aerie helps to add some silence as well as aesthetic… Read More…