In 2007, Congress passed the Energy Independence and Security Act (EISA), which dealt with energy standards for lighting products, building efficiency, and smart-grid issues. Although there have been previous energy bills, EISA spelled out targets that called for a serious move to action on energy efficiency unlike any other previous legislative measure. “I still find it remarkable that the importance of lighting in a national energy strategy became clear enough that EISA was passed,” says Evan Gaddis, president and CEO of the National Electrical Manufacturers Association (NEMA).
NEMA was a proponent of EISA, and advocated that energy policy should rely on affordable, proven technology; that market-driven incentives will provide faster results; and that government support of research and development and simultaneous promotion of energy efficiency is necessary. EISA’s impact lighting-wise has been most evident in the debate surrounding incandescent lamps.
Global Brands, Global Markets
Even the most casual observer of the lighting industry is aware that few borders remain. Solid-state technology is the primary force behind a new cycle of global industry consolidation, and this is opening up world markets to small and large companies alike. Voltage differences, country to country, are no longer an issue.
New lighting companies are being formed, and grown, often with the intent of being primed for acquisition to a larger conglomerate. A few companies—probably those with the most powerful intellectual property, who will take the risk, and who will remain independent—have the potential to become the giants of the midcentury. “The global lighting market will drive manufacturers to an even higher level of quality,” says Acuity’s Astary, a point echoed by NEMA’s Gaddis. “As companies consolidate around the world, it will actually result in innovation and new lighting technologies reaching [the] market even faster,” Gaddis says.
New lighting companies are being formed, and grown, often with the intent of being primed for acquisition to a larger conglomerate. A few companies—probably those with the most powerful intellectual property, who will take the risk, and who will remain independent—have the potential to become the giants of the midcentury.
“Historically, Europe had the largest influential role in the advancement of lighting design and technology,” adds Luminus’s Ward. “The U.S. would then elevate performance and drive cost competitiveness. Now Asia is doing the same thing, and taking it to another level.”
But the opportunity here isn’t just for the largest of lighting companies. “Even small manufacturers are now fully involved with global technology and global markets to help them grow,” says Crawford Lipsey, president and CEO of Relume. “You must have an international perspective on product development and the supply chain to be competitive.”
What’s Next?
The consensus from lighting-industry leaders is that the cost and availability of energy will become even more critical as consumer demand outpaces supply. This puts the lighting industry right in the center of the conversation, since lighting accounts for more than 30 percent of a building’s electricity use according to data gathered for NEMA’s Enlighten America initiative.
“The role of high-knowledge lighting professionals will increase as customers demand new technology, products, and systems that deliver maximum energy savings,” says Philips’s Dundon. “All lighting projects, just like politics, are local. And lighting professionals are the ones at the scene.”
Over the past 25 years, the technological advances in lighting have been startling—and there is no let up in sight. “For decades the world was at 40 to 60 lumens per watt,” Ward says. “New technology can deliver 120 to 140 lumens per watt and more. And improved lighting products and systems will cost less to design, own, and operate.”
As products become even more reliable, manufacturers will offer longer warranties on both products and systems. A product that has the potential for 50,000 hours of service changes the game completely. In the meantime, customers’ knowledge will expand to include greater understanding of standards, color, and equipment options.
“Lighting design professionals will continue to be at the core of lighting creativity, bringing together form and function in unique and standard applications,” says John K. Morgan, vice chairman of Acuity Brands until 2007. “They were influential throughout the 20th century in the evolution of light sources and fixture designs, and they will continue to combine art and science as they apply new technologies in the 21st century.”