Independence LED Lighting, LLC reports that its 2011 LED Tube sales grew nearly 300% from 2010. LED Tubes are used in new construction and replacement applications for fluorescent tubes.
The LED Market is Large and Rapidly Growing:
The McKinsey & Company Report (Lighting the way: Perspectives on the global lighting market), cites that the total LED Market in 2010 was $10 Billion and forecasts growth to $54 Billion in 2016, representing a 5.4X increase and a Compounded Annual Growth Rate (CAGR) of 32%. According to the U.S. Department of Energy, there are over 2.3 Billion fluorescent tubes in America. Approximately 600 Million fluorescent tubes burn out each year in America. For more Data and insight on the "Tipping Point", see: T12 LED Tube White Paper. The LED Tube subset of the overall LED market is forecasted to increase at a dramatic average annual growth rate of 75% from 2011 to 2016, according to ElectroniCast.
The Made in U.S.A. Factor:
Independence LED's 300% increase in sales from 2010 to 2011 is well above the industry average. The increase is in part a testament to the shift in manufacturing from China to America.
"We knew that we were doing well, but we were surprised we were growing so much faster than the industry. We credit our growth and leadership position to five key factors: Our Shift in Manufacturing from China to America, Thermal Management, UL Classification, Reseller Support, and the overall Recession that has forced Owners and Managers to look harder at their operating costs." – Charlie Szoradi – Independence LED, Founder and Chairman
The Five Star Factors contributing to the recent growth in LED Tube Sales:
1) In the summer of 2010, Independence LED moved its manufacturing from China to Boyertown, PA and now produces high quality LED Tubes with domestic and imported components. The resulting quality control and ability to deliver product on time or even ahead of schedule has been critical to building confidence with Authorized Resellers. These distributors had significant frustration from past dealings with products manufactured overseas.
2) Heat is the enemy of the Light Emitting Diode, and Independence LED has superior Thermal Management over imported LED Tubes. This is accomplished with the External Driver, Deep Fin Heat Sink, Surface Mounted Diodes, and thermally-conductive Printed Circuit Boards. Independence LED focuses on "value" and reduces cost to the end user through innovations in automated assembly at the U.S. plant.
3) Independence LED secured the Underwriters Laboratories (UL) Classification on its entire system of linear lighting rather than just the components. The system includes multiple lengths and wattage levels for the LED Tubes as well as different color temperatures. Securing UL also opened the doors to Utility Company Rebates in major markets like New York City.
4) For Manufacturer Reps and Distributors, Independence LED has hosted numerous LED Boot Camps over the years to support the "Solution" Selling approach to high performance lighting with ROI Calculators and a host of support files. The company continues to seek out qualified reps and resellers to join the network.
5) The global economic downturn has forced property owners and managers to look harder at their operating costs, creating opportunities for LED Tubes to provide welcomed savings of 50% over fluorescent equivalents.
Recent Market Leadership:
The 2011 sales momentum for Independence LED culminated over the fourth quarter of the year with a benchmark order by a national auto service chain. Independence LED delivered the tubes to retrofit the first 50 of more than 800 locations in the chain, and the project may stand as the largest retrofit to date with US Made LED Tubes in American History.
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