How the slowdown of the Supply Chain affects your project

Over the last year, there has been quite a disruption in the lighting supply chain. A lighting fixture is manufactured with dozens of components. Remember a lighting manufacturer has to have all of the components shipped to their facility to they can assemble the fixture. Each one of these components has had their own issues due to Covid. A lot of LED fixtures are made from various types of metals. According to Trading Economics, the costs of metals including copper and aluminum have gone up substantially over the last year. 

  

 

Freight costs have increased while the average time to delivery has gotten longer. And due to factory closures last year, all of the raw materials that go into a new LED fixture are taking longer to produce and ship.   

So what does that mean for your project? It means if you are planning to do a lighting installation later this year, you better start now. Fixture availability and deliveries are taking longer. Prices are going up and for most products, you may not be able to get them this year at all. In addition, a lot of rebate programs are changing and there are some tax incentives that are now permanent that can potentially cut your break-even in half.   

If you need help evaluating your project and want to get a head start on the process so you can successfully install in  2021, contact us now at info@uslightinsystems.com, so we can help you with the proper planning and analysis.  

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