ELEMENTAL LED INVESTS IN MORE
US MANUFACTURING & ASSEMBLY
SSL MANUFACTURING IS TRAVELING BACK TO THE US
Excerpts from Page 56 September 19, 2017 LEDs Magazine
By Matt John, Elemental LED
Is lighting manufacturing moving away from its traditional base
in China? This question has been a hot topic for as long I can
remember. China is not ready to relinquish the manufacturing
throne just yet. The nation has massive production numbers,
unparalleled infrastructure, endless backing by the Chinese
government, and a still-evolving economy to support its position.
However, there is a subset of the industry that is moving away
from manufacturing in China to the US at a rapid pace: the
modular lighting vertical.
The US-based manufacturing movement in modular lighting
hinges on three major factors: stresses on Chinese manufacturers,
market needs, and quality control.
The cost of labor in China has increased almost 3× in China since
2000.
Compounding the rising cost of raw goods is the up-tick in the
enforcement by the International Trade Administration of various
aluminum alloys tagged for up to 45% more in duties due to anti-
dumping and countervailing considerations.
Chinese manufacturers cannot deliver on the need for speed,
and lighting companies cannot stock every possible component
combination fully assembled. Last-mile manufacturing is well
financed and on its way to becoming an industry standard.
Patents and trade secrets also come into play here, as US
manufacturers delve deeper into technology and gain unique
market knowledge.
Modular lighting embodies the market’s solution for speed,
variation, and quality. For these reasons alone, manufacturing
will find a home in America and it will be hard pressed to find its
way back to China.
September 19, 2017
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