Report Predicts U.S. Fixture Shipments to Reach $14.4 Billion in 2008


Shipments of lighting fixtures in the U.S. are expected to rise over 5% annually through 2008 to over $14.4 billion, according to Lighting Fixtures , a new study from The Freedonia Group, an industrial market search firm.

This pace represents a significant acceleration from the 1998-2003 period as improving economic conditions boost demand in both construction and manufactured goods markets. Advances in lighting fixture demand will also be supported by an ongoing focus on energy efficiency, which will lead to residential remodeling activities and nonresidential retrofit projects aimed at increasing the energy efficiency of existing lighting systems. This focus will also drive demand for electronic ballasts and high intensity discharge (HID) lighting, as well as for advanced technologies such as LED and fiber-optic systems. Because these new technologies are typically more expensive, this trend will benefit value gains.

Non-portable fixtures accounted for three-quarters of total lighting fixture shipments in 2003, deriving their dominant position from widespread use in the full range of residential and nonresidential building, non-building construction and vehicular applications. Non-portable fixtures will also lead lighting fixture gains through 2008, with shipments rising 5.3% per year to $11.2 billion. Advances for non-portable fixtures will be fueled by the rebound expected for nonresidential construction spending, which will create particularly robust prospects for the industrial-type and outdoor segments. Building and non-building construction are the principal markets for lighting fixtures, accounting for roughly two-thirds of total demand in 2003. These markets will offer above-average prospects through 2008, increasing 6.5% per annum to $14 billion. Gains will be fueled by recovery in the construction of office, commercial and industrial buildings, which will support lighting fixture demand in these segments. Fixture demand in each of the construction markets will also be supported by the continued popularity of retrofit programs in which advanced, energy-efficient fixtures are installed to replace older, less efficient fixtures.





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