Q4 Lighting Happenings and Pulse of Lighting Survey

As we come to the end of the year, the lighting market, from an activity standpoint, continues to remain strong in most markets.  Perhaps due to concern about future tariff-driven price increases, perhaps from benefits due to tax inducements, perhaps the beneficiary of backlogs, or “just because.”

And it’s time to get your pulse on the Q4 lighting market with our quarterly lighting survey, conducted in association with William Blair and Electrical Wholesaling.  Free lighting research results to help you benchmark your performance will be available. Click here to take this confidential survey (and if we get enough responses by marketing group we’ll segment the results for you.)

The market has also seen some change during the quarter.

• Current by GE was sold to a private equity firm, which is perhaps the best thing that could have happened to the company and the way for GE to realize the most for the business. Not much commentary around the sale as many seemed to breath a sigh of relief that the process was done … and that the company wasn’t sold to a Chinese entity, which was presumed.  Through 9 months the company generated only $900M, so on track for about $1.2B? Globally?  It’s also interesting that GE didn’t announce a selling price (perhaps meaning “nothing to brag about to Wall Street”?  A private equity firm can quietly make any necessary changes, invest where necessary and then either flip the business or perhaps add elements to it and take it public later-on
• Interesting that GE was not able to bundle GE Consumer Lamps with the Current sale. Did the PE firm not want the business because it didn’t fit their model? Did GE want too much for the business? Does the business have value? So it begs the question of “what happens to the business?” Is it too small for GE to even worry about / sell?
• And while GE, as a company, leaves the lighting business, Rab launched a 350+ SKU lamp line which has been in development for a bit. Reportedly they see this as a way of better competing in the marketplace and perhaps an open segment of the market. They now have linear types, A-line lamps, PARs, reflectors, decorative, compacts and HID replacement lamps … all Rab branded (and yes, all imported / sourced) and backed by the Rab service commitment. It will be interesting to see how well adopted this becomes. Will reps be able to make a market and ask for support? Is a national DIY chain going to support Rab to create consumer brand recognition or does the lamp line play as a contractor-offering?  Many questions as Rab pursues “next level” corporate goals.
• Most suppliers took the opportunity to “add a little” to tariff-related price increases, hoping to recoup some costs. Some smaller companies, either that had inventory in-country or were willing to trim margins, extended their “pre-tariff” pricing with a goal of increasing sales. Questionable if the pre-tariff pricing strategy worked for any of them. Pricing remains tight, distributor margins continue to erode for numerous reasons. Question becomes, “have tariffs either stimulated people to buy before increases, impacted consumption (any projects on hold) or made no difference?” One thing is for sure, the geopolitics have consumed much work time / energy by those in the lighting business as well as from distributors (and yes, other product categories also.)
• Hearing that the industrial lighting business is strong.

And while we’re closing out the year, we’re launching our Q4 Pulse of Lighting survey.  How has Q4, complete with a round of tariff increases and much manufacturer work to prepare for the end of year planned tariff increase (which is now delayed), been for you?

The survey is open till December 17^th.  The survey is open to distributors, lighting manufacturers, lighting agents and manufacturer reps who carry lighting lines.

Respondents will receive a free copy of the results to benchmark their performance and get a sneak peak into the markets expectations for 2019.  Click here to take the survey.

Results will be available shortly after New Year’s

What are you seeing in the lighting market?