Highlights from our recently released 2022 Q4 Pulse of Lighting report include:
- Manufacturers, reps / lighting agents and distributors each reported mid-single digit performance
- Busiest market segments are small and medium new and renovation construction markets.
- There is a sense of distributors possibly working down their inventory, however, new multi-use products (tunable wattage products) create opportunities for distributors to reduce their inventory.
- Over 2/3rds of distributors reporting having some projects delayed due to product delays in other product categories, especially switchgear
- Some report that projects have been cancelled due to the economy and/or labor issues.
- Some supply chain issues remain, at least for some, although container rates have dropped significantly.
- Pricing was relatively flat in Q4.
And for 2023 …
- Distributors expect a couple of points lower for Q1 but, ending a little higher but still low mid-single digit growth for the year.
- Manufacturers are a little more optimistic for 2023 albeit mirror
- Reps are projecting lighting market performance in line with their distributors but significantly less than manufacturers.
- We asked each audience to rank key drivers of success in 2023
- There is nominal conviction about price increases for Q1, an indication of a competitive market, declining supply chain issues (and costs) and a weakening market where price returns as a more important decision criterion.
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