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Lighting Equipment Demand remained weak in 4Q 2010.
Press Release Summary:
Mar 03, 2011 - NEMA's Lighting Systems Index receded 2.1% on quarter-to-quarter basis during 4Q 2010. Year-over-year results indicated aggregate lighting equipment demand has not improved appreciably since recovery began and remains below levels observed during previous economic expansion. Among 5 lighting systems products included in index, emergency lighting, ballasts, and large lamps posted year-over-year declines in shipments, while fixtures and miniature lamps registered solid gains.
Original Press Release
Lighting Equipment Demand Remained Weak During Fourth Quarter of 2010
Press release date: Feb 28, 2011
End-market demand remains extremely lackluster for lighting equipment as both the residential and commercial markets continue to grapple with anemic construction activity. Single-family housing starts registered their second-lowest annual average reading on record during 2010. The extension of the federal homebuyer tax credit only shifted purchases to the first half of 2010 and did not yield a permanent increase in housing demand. New home construction will likely remain weak over the near term as foreclosure activity lingers near all-time highs and the slow recovery in the labor market weighs on household formation.
The nonresidential lamp market has seen significant struggles as well over the past few years. While some regulatory changes have temporarily juiced up demand for some lighting systems recently, commercial and industrial lamp demand has declined at a double-digit annualized rate in each of the last 9 quarters. Vacancy rates inched lower during 4Q 2010, but remain close to cyclical highs and output and job growth will have to rebound at a much stronger pace to allow for the absorption of this glut of available space. Consequently, replacement activity is expected to constitute an unusually large share of nonresidential lighting equipment demand over the near term. Retrofits will also play a significant role as companies continue the process of switching out non-compliant systems or opt to install more efficient equipment. Given this backdrop, the LSI is expected to see only modest gains at best during 2011.
NEMA is the association of electrical and medical imaging equipment manufacturers. Founded in 1926 and headquartered near Washington, D.C., its approximately 450 member companies manufacture products used in the generation, transmission and distribution, control, and end use of electricity. These products are used in utility, industrial, commercial, institutional, and residential applications. The association's Medical Imaging & Technology Alliance (MITA) Division represents manufacturers of cutting-edge medical diagnostic imaging equipment including MRI, CT, x-ray, and ultrasound products. Worldwide sales of NEMA-scope products exceed $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing and Mexico City.
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