LED lighting companies' performance growth slowed down

In 2018, the growth momentum of the global LED lighting market is weak and weak. Due to exchange rate and uncertainty factors, many emerging economies are facing negative pressures from recession. The Sino-US trade war has intensified and weakened the growth performance of the mainland domestic demand market. Under the uncertainty of the overall economic chaos, the lighting market, which is the demand for people's livelihood, also shows the phenomenon of terminal pull-down.

Affected by the trade war, the price of American lighting products increased

The United States itself has a good manufacturing base for lighting products. Under the background of the Trump administration's return to industrial manufacturing, the entire lighting industry will have a certain degree of development with its advanced equipment level and relatively complete industrial chain system.

However, the demand in the US market is too large, accounting for more than 20% of the global lighting market. Only relying on its own manufacturing capabilities can not meet the needs of the country. In particular, the light source products are basically imported from China, so the United States comprehensive General lighting products are not self-sufficient.

On September 24, 2018, the US government began to impose a 10% import tariff on more than 30 LED lighting products produced in China, and plans to increase it to 25% from January 1, 2019. Affected by the high tariffs imposed by the Sino-US trade war, brand manufacturers have begun to increase the price of their products and pass on the tariff burden to consumers.

Acuity Brands, the US lighting supplier, has raised retail prices in the US market due to a 10% tariff, while Easton, a US-based lighting supplier, has increased the price of LED products by 10%. For tariffs to rise to 25%, the retail price of Acuity Brands and Easton products will increase by 15% from January 2019. The current retail price level and OEM shipment price will remain until the end of 2018.

OFweek Semiconductor Lighting Network believes that other suppliers in the US market may also respond to this situation by raising retail prices, and may continue to increase orders by the end of 2018.

And due to oversupply, the price of LED lighting equipment has dropped by 20-30% since the beginning of 2018. At the same time, in order to mitigate the impact of retail price growth, US LED lighting suppliers may require upstream OEM partners to share import taxes, which is equivalent to forcing them to lower their prices.