by Brianna Crandall — September 15, 2010—NEMA, the Association of Electrical and Medical Imaging Equipment Manufacturers, reported recently that the demand for lighting stagnated during the second quarter of 2010, with NEMA’s Lighting Systems Index (LSI) dipping 0.3 percent from the previous quarter.
On a year-over-year basis, the index registered a 5.3 percent gain since the second quarter of 2009. However, since that quarter marked the lowest reading ever recorded for the LSI, this rate of year-over-year growth indicates that lighting equipment demand remains at a very low level, notes NEMA.
When broken down by the underlying product mix, shipments of miniature lamps, large lamps, and fluorescent ballasts expanded on a year-over-year basis while fixtures and emergency lighting systems posted sizable declines.
As quickly as hopes of a strengthening economic recovery emerged in the spring, the mood has shifted significantly as concerns over the recovery’s staying power are rising rapidly, says NEMA.
The report shows that the steepest declines have likely already occurred for nonresidential construction. Nonetheless, any appreciable growth in commercial or industrial construction activity is not expected for at least several more quarters, especially since most of the major income property markets are still saddled with a large volume of vacant or underutilized space, according to NEMA.
Retrofitting and replacement demand will likely account for the vast majority of nonresidential lighting equipment demand over the near term, says NEMA. Given this backdrop, the LSI is expected to remain close to its current low levels even into 2011.
Except for slight gains in 2010, lighting demand has experienced a downward trend since Q2 2006.
