How Will Coronavirus Impact The Lighting Industry?
It’s difficult to name an industry that hasn’t been impacted by the coronavirus pandemic in one way or another. Since the outbreak began late last year in China, major disruptions have created ripple effects in economies around the world. Whether due to restrictions on travel, the halting of manufacturing activity or resources being redirected to humanitarian efforts, these ripples have been felt virtually everywhere. Just one look at the current market volatility tells you these are uncertain times. Even as the global community pulls together to stem the crisis, the fight is having significant consequences for businesses of all kinds. This post offers some key information about COVID-19 and the lighting industry.
Supply Chain Concerns
Like much of the manufacturing sector, lighting manufacturers depend on China as the source of a significant percentage of the components they use. Because COVID-19 is believed to have originated in the city of Wuhan in the Hubei province, China was the first country to be hit by the outbreak. As such, it was the scene of the earliest lockdown measures, which several other nations have subsequently taken to halt the spread of the disease. In many cases, workers at plants where LEDs and other light fixture components are manufactured have been ordered to stay at home.
This has profoundly impacted the lighting industry supply chain, as one might expect. Without the necessary components, production has come to a complete stop in many places. Of course, once the pandemic passes and life returns to normal, these facilities won’t be able to return to full productivity instantaneously. There most likely will be a massive effort to fill back orders. In some cases, workers who were furloughed or laid off in response to the crisis will not return to their original jobs for one reason or another. This will hamper efforts to bring production back up to speed as inexperienced replacements will need to be trained.
Feeling the Impact
The bottom line is that the global lighting market can expect the reverberations of the COVID-19 pandemic to be felt for quite some time. Longer lead times, depleted inventories and premium pricing are just some of the ways in which suppliers, manufacturers and their customers could experience them. The sudden loss of revenue is almost certain to sink many smaller companies in this sector, leaving holes in the supply chain that may not be filled for some time. The longer the pandemic drags on across the globe, the longer the recovery process will take.
However, there are faint glimmers that the lighting industry may be able to recover a bit sooner than other sectors. This is largely due to UV disinfectant light systems. Companies that produce these germicidal lights almost certainly will see at least a slight boost as concerns about COVID-19 continue.
Working Through Uncertain Times
No matter what business you’re in, now is the time to consider ways to trim your operating costs. As a leading supplier of LED retrofits and fixtures, Litetronics can provide you with energy-efficient illumination solutions that can help you stay afloat during these challenging times. Litetronics has been in business for 50 years and has both experienced and witnessed disruptions and downtowns over the many years in business. We have weathered these storms, and we are confident that we all can thrive and get through this adversity and come out stronger than ever. To learn more about the lighting and fixtures we can provide for your facility, get in touch with us today.