Over the last 2 years, 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 so they can assemble the fixture. Each one of these components has had their own issues due to Covid. As an example, many LED fixtures are made from various types of metals. The cost of metals including copper and aluminum have gone up substantially since 2000 but has lately started to go down. (https://tradingeconomics.com/commodity/aluminum).
Freight costs skyrocketed after Covid but have also come way down this year and due to over supply and inventory levels going up, we are starting to see the prices of all of the raw materials that go into a new LED fixture go down. So, while the trend of inflation continues to be a major headline, it is our opinion that, at least for our industry, prices should finally start to stabilize in 2023 and maybe start coming down. But, most likely, manufacturers will keep prices the same and make more margin while they can!
We’ll keep an eye on this and report if we see any real world data on price changes.
Interested in a lighting upgrade? Contact US Lighting Systems at firstname.lastname@example.org or call 843-790-8929 to learn about our installation process!