Pulse of Lighting Q1 Report Indicates Lighting Market Slowing
According to David Gordon, founder of Electrical Trends, Channel Marketing Group, and principal of US Lighting Trends, the latest lighting statistics point to a gradual slowdown in what has been a super-robust market for some years.
Gordon states, “Late last month Channel Marketing Group conducted its Q1 Pulse of Lighting study. Over 225 individuals throughout the industry shared their input (and have since received an advanced copy of the results.”
The highlights from the Q1 2023 Pulse of Lighting Report show a decline in the market from the Q4 2022 Pulse of Lighting Report.
- All three elements of the channel shared that business was up on the lower end of mid-single digits.
- Looking towards Q2, all three elements of the channel see a slight improvement in performance.
- In considering project mix, distributors are seeing a migration to small and medium-sized new and renovation projects. Other market segments showed slowing activity. Some could be related to weather, some to project delays, some due to marketplace-driven financial considerations.
- Backlogs remain strong, but there appears to be some inventory change with some distributors.
A majority of distributors reported that they have had projects delayed due to products being delayed.
- Overall, quotation activity remains strong.
- In some instances, “product innovation is considered poker stakes.”
- Price deflation is occurring due to competitive issues.
- Some markets continue to be strong, others are “challenged.”
- Sales performance was minimally impacted by price appreciation and the market questions if there will be price increases in Q2.
- Key focus areas for sales generation are commercial retrofits, healthcare, industrial opportunities, and the educational market according to survey respondents.
Overall, cautious optimism but the growth rate is reverting to the historical industry mean.
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