For quite a while now, we have been arguing in favor of a transition to LED lighting for all the obvious reasons. The energy savings are remarkable, the reduction in maintenance costs is verifiable, and today’s tunable LED lamps offer a wide variety of options for facility managers with particular environmental requirements.
What we have not done before, however, is point out the very real expense associated with continuing on with legacy lighting technology. Sadly, after years of trying to keep things positive, the time has come to speak directly to the negative cost impact of an ongoing relationship with High-Intensity Discharge (HID) lighting technologies like metal halide, mercury vapor, and high-pressure sodium.
The truth is, with the widespread adoption of LED technology, lighting manufacturers have been finding it more and more difficult to prioritize these legacy product lines for years. Now, amid the current supply chain challenges brought on by the global coronavirus pandemic, those manufacturers are having to make some tough decisions.
Before the pandemic, the costs associated with maintaining separate product lines were already rising. Following the pandemic, with labor and material shortages exerting more pressure on suppliers, the expense of maintaining legacy product lines has forced manufacturers to pass rising costs on to customers.
At FSG, this news is not a surprise. We have been watching the trend move toward higher costs for legacy products for quite some time. However, we have recently been notified that an average price increase of 30% for traditional lamps and ballasts will take effect in January 2022.
Higher Prices are Coming Soon
Earlier this month, we received a memo from a major national lighting manufacturer outlining the situation it is facing with its traditional lamp and ballast product lines. The memo was a wake-up call.
The main message was that the lighting industry, like many others, is being negatively impacted by inflationary commodity pressure and component availability issues. Those forces, combined with an ongoing, multi-year contraction in the legacy lighting market segment, have led to higher prices.
According to the memo, beginning in January 2022 a price increase of approximately 30% on average on traditional lamps and ballasts will take effect. The memo goes on to state that orders received before December 31, 2021 for immediate release at nominal flow levels will remain at current prices. However, all orders, including backorders, not shipped by January 2, 2022, will be subject to new higher pricing.
While this is the first official notice we have received, we do not expect it to be the last. In our opinion, time and circumstances have joined forces and these price increases are going to be the new normal for legacy lighting technology in the near future.
Same As it Ever Was
The cycle of innovation leading to breakthroughs which, in turn, transform industries and render the old ways obsolete is nothing new. Just look at the Columbus Buggy Company.
Founded in 1875, the company was producing over 100 horse-drawn carriages a day at its height in 1892. It was a multi-million dollar business back when a million dollars was a million dollars.
Of course, this fact didn’t matter much to Henry Ford.
The point is that new technology has a way of supplanting established ones. The constant march of progress does not stop for the world’s best handmade carriage, and it will not stop for metal halide, mercury vapor, or high-pressure sodium lighting, either.
The Time for LED Is NOW
There may have been legitimate reasons in the past for you to delay the transition to LED lighting for your commercial facility. Beginning in the months to come, cost will no longer be one of them.
For many facility owners, the cost associated with maintaining legacy lighting systems in 2022 will quickly become prohibitively high, and it will simply not make sense to stick with HID lighting. For those facility owners, we would respectfully request that you get in touch with us today.
Are you worried about financing your lighting project? We have programs and plans that take the stress out of LED retrofit projects.
Do you wish you knew more about available rebates and utility incentive programs? We can match you with every available rebate and incentive in your area.
Can you be sure that the lighting products you select for your facility are quality products that will last for years? Our national lighting distribution business is built on years of solid relationships with major manufacturers. By leveraging our association with these companies, you will enjoy the maximum warranty protections available anywhere today.
Will the installation work go smoothly, with minimal disruption of your normal operations? In a word, absolutely. And in the unlikely event that there is a problem, FSG will not leave until the job is complete and you are completely satisfied.
We Make It Easy
At FSG, we take great pride in anticipating problems and avoiding them altogether. Our experience with LED lighting retrofit projects allows us to make the process seamless for you.
When you give us a call, we will begin a four-step process that is the same for almost every lighting project we undertake:
1. Design a Solution
Once you contact us, we will go to work designing a lighting solution that meets your particular needs and supports your particular goals.
2. Execute the Solution
Once we have designed a solution for you, our commercial lighting specialists will get busy, coordinating their efforts with you to minimize disruption to your normal operations.
3. Evaluate the Solution
During the life of the project, FSG will continually evaluate the effectiveness of your lighting solution to make sure it meets your needs and supports your goals.
4. Maintain the Solution
Because we are commercial lighting contractors, we are uniquely qualified to support and maintain the lighting solutions we provide our customers. You will be able to enjoy the full benefits of your new facility lighting for years to come.
Say So Long to Expensive Legacy Lighting
Our customers know that we always try to keep their business challenges in mind. That is why we are telling you now – just as soon as we learned it – about the upcoming price increases for legacy lamps and ballasts.
With MRO costs set to rise by at least 30% in the coming year, the time may have finally come for many facility owners to say goodbye to the old tried-and-true HID lighting they have been using for years.
Hopefully, you have come to understand that LED lighting offers many benefits for facilities, and therefore the realization that it may be time for a lighting retrofit project will carry with it a touch of excitement.
Well, it should! Stepping out boldly with LED lighting delivers so much more than savings on operating expenses. Your employees and visitors will immediately appreciate the impact of clear, bright LED lighting.
In fact, we’re willing to bet that if you could have a quick chat with your future self, you’d likely ask, “Why did I wait so long?”
Wait no longer. Call us at (877) 293-6689 today.
We Are Ready to Talk to You Right Now
When you contact FSG or visit our online store, you’ll immediately have access to lighting and electrical professionals who can walk you through the decisions you need to make about your facility’s lighting. We’re working hard to be of service to you, and we’re ready when you are to discuss your situation.
If you are finally ready to say “No” to rising prices for legacy lighting components, there is no better time than right now to reach out.
For individual facilities, multiple properties, or for a large national retrofit rollout, we can walk you through the process from specification to installation to project management, all with the ultimate goal of maximizing the ROI for your facility.
We look forward to hearing from you!