Why are there so few small lighting companies?

Why are there so few small lighting companies?

Posted by David on 31st Dec 2023

Operating a lighting company is not easy when 99.999% of lights are made overseas. Starting in the 1980's, companies began moving production of all types of consumer goods to China to benefit from the low wages and willingness to do business. It worked and prices/variety of lighting in particular, mushroomed. Fancy lights, formerly available only to the extremely wealthy, were now in reach of the average middle class buyer. Dozens of new lighting companies sprouted up, the difference being that all of the manufacturing was being done in China versus the US. But so what, the costs were low, transportation was cheap and consumers loved all the new models. That went on for many years, quite successfully in fact, other than the number of US based manufactures that tried to compete, pretty much went the way of the dinosaurs. Of course there is always a market for highly specialized and custom lighting, usually much more expensive.  But just as what Covid brought up, the parts suppliers that serviced those US companies, also went out of business. So even if you did want to make things locally, parts like glass or metal castings, were not available anymore. Kind of like trying to run a restaurant without food suppliers. The other major change is the cost of getting UL listing is way out of reach of any small company. Expect to pay $50,000 just to have them inspect and test a variety of lights to get going. That does not include the hundreds of dollars a month just to have the license, expensive ongoing inspections plus the thousands in yearly renewal fees. Lots of overhead to pay that is way out of reach for any small start up. 

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