William Blair and Channel Marketing Group surveyed electrical distributors, manufacturers, and lighting agents back in December 2020 about the state of the lighting industry and their predictions for the future. Since then, they have issued another survey taken between June 7-20, 2021 detailing the state of the industry in Q2 2021. The results were compiled in the 2021 Q2 Pulse of Lighting Report and below is a list of the takeaways:
- All are wary of the current supply chain situation.
- All 3 groups report price increases.
- The majority of all 3 groups expect additional price increases in Q3.
DISTRIBUTORS
- report an increase in sales and a strong market and are seeing a rebound in activity in certain segments.
- continue to see no improvement in inventory backlogs due to supply chain issues.
- expect a very strong Q3.
MANUFACTURERS
- report an increase in sales that was in-line with predictions.
- expect the same level of growth to continue into Q3.
- report that customers are expressing more frustration with lead times as the supply chain situation sees little to no improvement.
SALES REPS
- report a slight increase in sales, an improvement over the decline in Q1.
- expect increasing growth to continue into Q3.
- attribute growth to the resumption of renovation and construction projects.
Some responders expressed concerns over rep consolidation and what that means for distributor support and market coverage. Others commented that the bid-to-project start timeline has prolonged due to hyperinflation and scarce materials.
To obtain a complete copy of the 2021 Q2 Pulse of Lighting Report with more details and commentary for only $29, click here to order. A digital copy will be sent to you shortly thereafter.