Commercial, Industrial, and Institutional Electric Lighting Fixtures

SIC 3646

Companies in this industry

Industry report:

The commercial lighting fixture industry comprises establishments primarily engaged in manufacturing electric lighting fixtures for commercial, industrial, and institutional customers. Popular industry offerings include hotel and restaurant chandeliers, desk and floor lamps for offices, luminous ceiling panels, and industrial fluorescent lighting fixtures.

Industry Snapshot

According to Dun & Bradstreet, 717 establishments were engaged in manufacturing commercial, industrial, and institutional electric lighting fixtures in 2010. Together these firms employed 18,668 people and generated more than $3 billion in annual revenues. Most businesses were small, with about 53 percent employing fewer than 10 people and 29 percent employing between 10 and 50 people. Fifty-seven percent of those employed by the industry worked for companies that employed more than 100 people. States with the most employees in the industry included New York, California, Ohio, and Illinois.

Background and Development

Following Thomas Edison's invention of the light bulb in 1879, the use of lighting fixtures in commercial applications gradually became widespread. During the Industrial Revolution in the late 1880s and early 1900s, electric light fixtures became common in factories, hospitals, hotels, and other commercial buildings. Fixtures for fluorescent bulbs, which were introduced in 1938 and were more energy-efficient than previous bulbs, were the focus of the industry by the 1950s. The steady market growth precipitated by the post-World War II U.S. economic expansion pushed sales of commercial fixtures past $1.5 billion by the early 1980s.

Healthy commercial development throughout most of the 1980s resulted in an average of nearly 8 percent annual revenue growth for the commercial fixture industry, and by 1990 sales topped $3 billion per year. Despite a severe downturn in commercial development in the late 1980s and early 1990s, sales dropped only 1 percent in 1991 before rising an encouraging 4 percent in 1992. Healthy institutional demand and sales of fixtures for new energy-saving bulbs continued to buoy earnings in 1994 and 1995, as industry revenue climbed to around $3.5 billion, up more than 16 percent from 1992. In 1997 the value of shipments reached slightly more than $4 billion.

In the mid-1990s, U.S. commercial lighting fixture manufacturers benefited from government initiatives that encouraged businesses to replace existing lamps and fixtures with new energy-saving devices, which gradually replaced the old equipment. The new devices and lamps produced more light per watt, so less electricity was needed to power the fixture. Companies also boosted profits through cost-cutting programs and productivity gains, which traditionally meant workforce reductions. As foreign competition increased and the North American Free Trade Agreement (NAFTA) was implemented, many manufacturers formed joint ventures with overseas producers and moved production facilities outside the United States.

Industry shipments fell from $4.1 billion in 1997 to $3.87 billion in 2002. Over the same period, the cost of materials decreased from $2.04 billion to $1.68 billion, and the number of industry employees fell from 23,098 to 19,742. By 2007, the 402 establishments operating in this industry employed 21,488 people who earned just over $853 million in wages. Approximately 53 percent of the workforce was employed by companies who had fewer than 25 employees. Revenue for that year was $5 billion.

The value of industry shipments fell to $4.3 billion in 2008. About 90 percent of industry output was used for commercial and institutional purposes, while the rest was utilized in industrial applications. Approximately 4 percent of production was exported. The largest single market for commercial lighting devices was in office buildings, which purchased about 10 percent of all fixtures produced by both residential and commercial fixture manufacturers. Hospitals and parking garages each used about 1 percent of production. The remainder of the market was highly fragmented.

Consolidation was a major trend, as large companies acquired smaller ones. Manufacturers targeted the institutional and commercial segments, and new construction in the middle of the first decade of the 2000s boosted sales, although production slowed at the end of the decade during a global economic recession. Value of industry shipments fell to $4.1 billion in 2009, according to the U.S. Census Bureau, but by 2010, the industry was looking forward to a recovery.

Current Conditions

At the beginning of the 2010s, the lighting fixture manufacturing industry overall was expected to see a gradual recovery from the economic recession that began at the end of the first decade of the 2000s. IBISWorld reported on September 1, 2011, that "While growth has been slow, increasing government regulation is expected to support revenue, as demand for energy-efficient lighting soars." Nonresidential light fixtures comprised a majority of the market. The Freedonia Group was also optimistic, predicting that the demand for lighting fixtures in the United States would grow 4.8 percent annually to reach $21.9 billion by 2014.

One of the major trends in the industry in the early 2010s was the surge in new products and applications that used light-emitting diode (LED) technology. After the passage of the Energy Independence and Security Act in 2007, which included a phase-out of all incandescent light bulbs by 2014, businesses began to look for alternatives. Compact florescent lighting was often used as a replacement, although LEDs proved to be even more energy-efficient, in spite of substantial initial costs compared to traditional lighting. Research group Frost & Sullivan projected that the global market share of LED fixtures would increase a substantial 3 percent in 2011 to become the dominant lighting system later in the decade. The company forecast that revenues in the worldwide LED fixture market would grow from $491.1 million in 2010 to almost $1.9 billion in 2017. According to company representative Neetha Jayanth, "Suppliers across the globe are undertaking to improve the quality of LED lamps by enhancing their efficiency, quality of light output, color rendition and thermal management. Thus, LED lamps are set to become better equipped for use in functional lighting across all building sectors." Some businesses had already taken steps to switch to LED lighting. Starbucks, the coffee house franchise, for example, installed LED light fixtures in 8,000 of its stores across the United States in 2011, and others were following suit.

Industry Leaders

One of the industry's most significant participants in the early 2010s was Cooper Industries of Houston, Texas, which had sales of more than $5 billion in 2010 with almost 25,000 employees. Another industry leader was Hubbell Inc., headquartered in Shelton, Connecticut. Hubbell employed 13,000 and recorded 2010 sales of $2.5 billion. Acuity Brands Inc. of Atlanta, Georgia, produced lighting fixtures for both commercial and residential customers. Acuity reported 2010 sales of $1.6 billion with 6,000 employees in 12 plants in the United States and Mexico, as well as two in Europe. The Genlyte Group Inc. of Burlington, Massachusetts, which operated as Professional Luminaires North America, was another industry leader, with 5,000 employees and annual revenues of $300 million. Genlyte was purchased by Royal Philips in 2008.

Workforce

Although industry employment rose throughout the 1990s, the number of employees dropped in the first decade of the 2000s. In 2007 the U.S. Census Bureau reported 21,488 workers in the industry, but by 2010 Dun & Bradstreet reported a drop to 18,668 workers. About two-thirds of employees worked in production.

Future employment prospects in this industry were not encouraging. According to the U.S. Bureau of Labor Statistics, manufacturing positions were expected to decline significantly in the early twenty-first century in the wake of productivity gains and the move of production facilities abroad. However, sales positions and some specialized machinist occupations, which accounted for a relatively small share of the industry's workforce, were expected to increase.

America and the World

The United States continued to report a trade deficit in the lighting fixture industry in the early 2010s. According to the International Trade Administration, U.S. exports were worth $118 million in 2009, while imports were valued at $1.4 billion. Canada accounted for a majority of U.S. exports, with significant shipments to Japan and Mexico. A majority of imports came from China.

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Commercial, Industrial, and Institutional Electric Lighting Fixtures

Research and Markets Adds Report: 'Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry in the U.S. and Its International Trade [2012 Q3 Edition]'
Manufacturing Close-Up; August 15, 2012; 461 words
...Supplier Relations US, LLC's new report "Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry in the U.S...researchandmarkets.com/research/vkx8m5/ commercial_indust ((Comments on this story may...
Research and Markets Adds Report: Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry in the U.S. and its International Trade [Q2 2009 Edition].(Report)
Manufacturing Close-Up; September 7, 2009; 449 words
...Relations US, LLC's new report "Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry in the U...The Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry report...
Research and Markets Adds Report: Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry in the U.S. and its International Trade [Q2 2009 Edition]
Manufacturing Close-Up; September 7, 2009; 441 words
...Relations US, LLC's new report "Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry in the U...The Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing Industry report...
Contract Notice: Department of the Army (Maryland) Issues Solicitation for "Industrial and Institutional Electric Lighting Fixture Manufacturing Commercial"
US Fed News Service, Including US State News; December 12, 2012; 306 words
...WASHINGTON, Dec. 12 -- Department of the Army, FedBid has a requirement for "Industrial and Institutional Electric Lighting Fixture Manufacturing Commercial."The solicitation no. 0010216405 was posted on Dec. 11.All responses are due...
Contract Notice: Department of the Interior (Chestnut Street Philadelphia Pa) Issues Solicitation for Lighting Fixtures, Lamps
US Fed News Service, Including US State News; November 30, 2010; 304 words
...Park Service has a requirement for lighting fixtures and lamps. The solicitation no. Q1840110403...Solicitation NAICS Code: 335122- Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing238210- Electricians...
Delivery of Emergency Lighting and Knx System Supplies for Dpw
Mena Report; February 7, 2018; 328 words
...Delivery of Emergency Lighting and KNX System Supplies...Classification Code: Lighting fixtures & lamps NAICS Code...component manufacturing/ commercial, Industrial, And institutional electric lighting fixture manufacturing Response...
Delivery of Emergency Lighting and Knx System Supplies for DPW Usag Wiesbaden
Mena Report; February 2, 2018; 334 words
...Delivery of Emergency Lighting and KNX System Supplies...Classification Code: Lighting fixtures & lamps NAICS Code...component manufacturing/ commercial, Industrial, And institutional electric lighting fixture manufacturing Response...
Research and Markets Adds Report: Electric Lighting Equipment Manufacturing Market Global Briefing 2018
Entertainment Close-up; January 26, 2018; 628 words
...addition of the Electric Lighting Equipment...Electric Lighting Equipment...electric lighting equipment...Lighting Fixture Manufacturing...lighting fixtures for use both...fixtures for commercial, industrial, and institutional ...

Search all articles about Commercial, Industrial, and Institutional Electric Lighting Fixtures