Industry Analysis & Industry Trends
In the five years to 2015, the Lighting and Bulb Manufacturing industry has struggled with rising import penetration and increasing input costs, which constrained revenue and profit growth. Additionally, the increasing substitution of LEDs for traditional lighting systems has dramatically reduced demand for industry products. Poor industry performance is expected to continue during the next five years, as contractors and homeowners alike are expected to increasingly opt for LED-lighting systems over industry products, significantly reducing downstream demand; import penetration levels are anticipated to continue growing, heightening price competition for domestic manufacturers... purchase to read more
Industry Report - Industry Investment Chapter
The Lighting and Bulb Manufacturing industry has a low level of capital intensity due to the combined need for automated machinery and human labor. For every dollar spent on wages, about $0.06 is spent on capital assets. Capital investment is largely in manufacturing machinery, which most large operators use to streamline the production process. New manufacturing machinery, equipment and facilities improve the quality of final products while increasing manufacturing efficiency and lowering production costs.
Despite being highly automated, the industry still requires a significant amount of labor for the operation of industry machinery. The necessity for human labor drives up wage costs in the industry, lowering the industry's level of capital intensity... purchase to read more