The Q3 Pulse of Lighting results are in, and while I hope you exceeded performance, the reality is everyone was about flat or there were many that succeeded and others that were challenged.

2026 Q3 Pulse of Lighting …”Challenged” but Up

According to almost 200 responses, the lighting market continued to be “challenged” but this time with a slight upwards tinge.

Each segment of the channel reported a very slight increase with each reporting between flat to low single digits (manufacturers), although, overall, each segment was below what they forecasted for the quarter.

Distributor Lighting Insights

Key feedback included:

• Distributor performance increased 2 points from Q2’s reported performance so we go from slightly down to slightly up … but, when accounting for average price feedback, volume was flat.
• It continues to be a tale of two distributors – 1/3^rd of distributors were up more than 5% whereas 40% were down more that 5%. The data does not reveal if there are geographic differences or key line differences. This would be interesting for manufacturers to seek to correlate.
• Less than 20% of distributors reported carrying more inventory as this is a category where distributors feel that they can have material shipped in quickly to fill customer orders.
• Almost half reported that their backlog was flat, with half reporting that it was up.
• Qualitatively, much requoting, value-engineering, project delays due to submittal processes, a focus on small to mid-size projects (primarily renovation) and the typical market segments – data centers, healthcare, education, multi-family, some office retrofit.
• Pricing is front and center with much requoting as well as conglomerates being “aggressive” when they want to win a project. Overall, the average price increases were low single digits with some manufacturers announcing Q4 price increases for segments of their business due to rising input costs (commodities, electronics, fuel.)
• Some commented that lighting controls are being discussed, quoted, and sold more frequently.
• The Q4 outlook is again for low single digit growth, albeit a slight improvement. This could be due to backlogs being filled, delayed / requoted projects being started, or end-users spending end of year funds.

Manufacturers

• Manufacturers reported the highest performance, almost mid-single digits, which was a “significant” improvement over Q2’s projected slight decline.
• 50% of manufacturers reported a more than 5% increase, up from a third in Q2, but 50% were flat to down … a tale of two types of manufacturers!
• Less than 30% of manufacturers reported that their backlog increased whereas 50% reported that it remained the same.
• Many commented about specs not being held … value-engineering … and hence pricing pressure. Rising material and freight costs were also mentioned. Pricing pressure was also mentioned.
• Q4 is projected to be about the same as Q3.

Reps / Lighting Agents

• The rep / lighting agent community’s feedback split the difference between distributors and manufacturers with, again, low single digit performance, albeit a good difference from their Q2 performance indicating sales success in Q3. Almost 40% were up 5% and less than 15% were down more than 5%. About 50% of this increase is due to price increases.
• Their marketplace feedback included that they are starting to see some price increases, delays due to the submittal process continue to plague projects, the dearth of large projects, success, and interest in lighting controls, rising commodity and freight costs.
• Reps / lighting agents expect low single digit for Q4.

What is concerning, however, is the feedback from manufacturers and their reps / lighting agents about the future. One of the questions relates to specifier outlook looking forward 6 months. Each audience shared that more specifiers are “concerned” about the outlook and those sharing “slow down” also increased. Overall, a third to half were expected a tough market with about 50% stating “steady.” Few are busy, which doesn’t bode for an improvement in lighting sales.

This quarter we asked each audience about their lighting controls business and, while much effort is expended in trying to increase sales in this category, and there is some growth, it is slow and is still frequently one of the first lighting features removed from a project due to budget constraints, however, more fixtures appear to being ordered “controls ready.”

This quarter we added a new question … simple but informative. We asked did you beat, meet, or miss your quarterly lighting goal. Across the board 35-45% of distributors, manufacturers, and reps / lighting agents missed their goals. While optimism reigns supreme, at the end of the day, lighting sales are not delivering. Sales managers need to take goals with multiple grains of salt!

A complimentary copy of the complete report was sent to survey respondents. They are available to everyone else for only $35.