FOR IMMEDIATE RELEASE: March 27th 2012
Contact: Charlie Szoradi
Made in U.S.A LED Tubes
Gain Market Share over Chinese Imports
The Shift to Manufacturing in America is Central to Tripling the Sales for a
Leading LED Tube Company, Attracting Authorized Resellers, and New Job Creation.
Greater Philadelphia, PA (USA) – March 27, 2012 -- Independence LED Lighting, LLC (www.IndependenceLED.com) reports that its 2011 sales grew nearly 300% from 2010. LED Tubes, which are used in new construction, retrofitting and replacement applications for fluorescent linear tube lamps, are currently a subset of the overall LED industry. LED Tubes for building illumination dominate the commercial property sector and the socket lamp LEDs are more common for residential and other applications.
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%. McKinsey classifies the lighting market into three categories: Automotive, Backlighting, and General Lighting. General Lighting includes Residential, Office, Shop, Hospitality, Outdoor, Industrial, and Architectural. McKinsey estimates the LED General Lighting Market in 2010 was $4 Billion and forecasts it will grow to $44 Billion in 2016 representing an 11X increase and (CAGR) of 46%. Clearly, demand is growing for energy efficiency across the marketplace. Although the LED Tubes are a subset of the total LED market, the adoption rate is growing fast. LED Tubes are 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:
The Independence LED 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. The added cost and material weight of these measures is a deterrent for the “mass market” Chinese producers. Independence LED focuses on “value” and reduces cost to the end user through innovations in automated assembly at the U.S. plant. Details of the Technology Differentiation are available on the company website, and the result of this focus on engineering has built confidence among the resellers and the end users of the LED Tubes.
#3: Underwriters Laboratories (UL) Classification became a key driver for 2011 growth. Independence LED secured the 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 the UL Classification was also opened the doors to Utility Company Rebates in major metro markets like New York City.
#4: Independence LED works with a broad range of Distributors and Value Added Resellers in its Authorized Reseller Network. In most cases the resellers have a fundamental understanding of a “consulting” sale vs. a “commodity” sale, and 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 Manufacturer Reps and Resellers to join the network.
#5: The global economic downturn and recession has forced property owners and managers to look harder at their operating costs. This macroeconomic impact has created opportunities for LED Tubes to provide a welcome solution because they typically save 50% or more 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.
A New Generation of LED Manufacturer Reps and Authorized Resellers Traction:
The following feedback is from a range of five different sample Authorized Resellers that have toured the U.S. LED Tube production facility for Independence LED.
Lite Savers: Newark, NJ and New York City Metro Market - “I saw the manufacturing at the LED plant first hand, and it helped me speak to the American Made LED tube quality assurance process. This was key in the course of selling LED tube retrofits to accounts like one of the largest financial services firms in the world and one of the largest insurance companies. After two years of working with the team at Independence LED, I am pleased to see the sales traction from private corporations as well as the most recent public sector pilot program for a leading transit authority.”– Bill Maguire, CEO - Lite Savers
LED Lighting Solutions: Baltimore, MD – “In order to build our confidence for a major account within the US Defense and Security sector, it was imperative to witness the LED tube operation here in the States. After a long flight from California, I was pleased to see that the rigor of the LED tube engineering was matched by the rigor of the product manufacturing. The Made in USA aspect of the LED tubes was naturally key for our Military.” - Kevin M. Button, President - LED Lighting Solutions
G2 INC: Greater Philadelphia, PA – “I have worked with Independence LED’s Chairman, Charlie Szoradi, over the past three years, through our roles as Board Members of the Sustainable Business Network. I was impressed with the LED tube facility and the four different automated lines that can apply between 18,000 and 40,000 diodes per hour on their printed circuit boards. I now see a clear path to add value to this American Energy Revolution as a Certified Minority Owned Business for a range of public sector LED retrofit accounts.” - Bill Reddish, President - G2 INC
Southern LED Solutions: Meridian, MS – “We flew the key members of our team in from Mississippi to see the production and meet the Independence LED management team. The trip gave us the confidence in their domestic manufacturing and account support to dedicate more resources to our LED lighting retrofit business.” - Tim Hogan, General Manager - Southern LED Solutions
Absolute Energy Solutions: Washington, DC Metro Market – “We knew the pitfalls of delivery delays and poor quality with imported Chinese LED tubes, so I took the initiative to rent a van and drive eight of our team members up to the Independence LED factory tour and full day LED Boot Camp. Seeing the process and the 1/1,000 of an inch tolerance on the automated assembly goes a long way to reassure me, our sales people, and our clients that American Made LEDs are the right path forward for sustainable energy reduction. As the principal of a Certified Woman Owned Business I also wanted to make sure that in this “Green Economy” that our company can deliver quality at every turn.”– Sue Willison, Principal - Absolute Energy Solutions,
Size of the LED Tube Market:
According to the U.S. Department of Energy, there are over 2.3 Billion Fluorescent Tube in American ceilings. Approximately 600 Million of the fluorescent tubes burn out and are discarded each year in America. The estimates on the adoption level of LED Tubes may be conservative given the massive opportunity for savings with LED Tubes over the existing Fluorescent Tubes. This Press Release includes a Chart in Attachment #1: Number and Length of Linear Fluorescent Tubes across major U.S. Property Sectors (Source: U.S. Department of Energy) The Chart also includes the breakdown of the tubes by length and type. For more information on the 2012 “Tipping Point” and the opportunities to retrofit the least efficient T12 Fluorescents with LEDs, see the T12 LED Tube White Paper.
Support Info for Authorized Distributors and Resellers:
Independence LED is still a privately owned company that is also “independent” of any merger and acquisition or joint venture deals with major international fluorescent lighting companies. This autonomy allows Independence LED to have the agility to respond to the needs of distributors and end users and also make long term engineering and other investment decisions without the short –term pressures faced by publically traded companies. Independence LED is committed to servicing its Authorized Reseller Network through the support files for its LED Boot Camp.
About Independence LED Lighting, LLC: www.IndependenceLED.com
INDEPENDENCE LED Lighting, LLC is a US manufacturer of industry leading Linear LED products. The Company’s signature EAGLE LED TUBE System is comprised of a full line of Fluorescent Replacement Products as well as a portfolio of Multi-Tube Fixture Options. Over the summer of 2010, INDEPENDENCE LED brought its manufacturing from China to Boyertown, PA. The LED Tubes are certified by Underwriters Laboratories (UL) and meet the Buy America standards of the American Recovery and Reinvestment Act (ARRA). In addition to producing top quality lighting products, the Company offers comprehensive support services for its growing Authorized Reseller Network. INDEPENDENCE LED has led the industry with installations across the Fortune 500 and also won the Green Business of the Year Award by the Main Line Chamber of Commerce.
ATTACHMENT #1: Number and Length of Linear Fluorescent Tubes across U.S. Property Sectors
(Source U.S. Department of Energy – DOE January 2012 Report)
|Linear Type||Residential||Commercial||Industrial||Outdoor||All Sectors|
|T12 Greater than 4ft||28,685,000||109,066,000||10,830,000||148,581,000|
|T12 Less than 4ft||7,025,000||7,294,000||14,000||14,333,000|
|T8 Greater than 4ft||1,369,000||27,914,000||3,349,000||32,632,000|
|T8 Less than 4ft||3,020,000||14,090,000||708,000||17,818,000|
SAMPLE MEDIA COVERAGE:
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Sample Event Coverage: MADE IN AMERICA Panel with ABC World News - David Muir