Channel Marketing Group has released the results of their Q3 Pulse of Lighting survey. Distributors, manufacturers, and reps/agents were among the groups surveyed. The results align with a lot of the developments we have see going on in the industry, with supply chain disruptions continuing to be the main issue that gets called out. Below are some the main takeaways from the survey:
- Inventory availability currently rules over pricing.
- Distributors are focusing their attention towards brand lines. Reasons for this include: inventory concerns, ease of doing business, and the fact that big players can be the most cost-competitive.
- Sales continue to increase across the industry in Q3, but at a slower rate than in Q2.
- Q4 is projected to be more of the same, if not slower. This is in-line with the reports we’ve been hearing from freight forwarders, as the supply chain situation has been given no chance to improve, especially due to the holiday season.
- Most expect additional price increases to be announced in Q4.
- Renovation and construction sectors have slowed. The possible reasons for this include: labor issues and lack of specified product availability. Some of the respondents also theorize that work-from-home measures have led to some companies not feeling a need to reinvest or renovate their lighting systems at the business location.
- Big players are faring better. This is most likely true for almost all industries.
- Cooper and Acuity are aggressive on quoting for opportunities they are targeting. This also aligns with Acuity’s recent Q4 earnings report and investor call, where they demonstrated a strong performance and ability to adapt to the ongoing situation.
Much of what was highlighted doesn’t come as much of a surprise given the situation the industry has been in during 2021. If you wish to read Channel Marketing Group’s Q3 report in more detail, a complete copy of the report can be purchased for $29.00 here.