i.e. the New Lighting financial reality
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Lighting Guy, 30 years
Industry Observer and Active Participant
Talent assessment => Industry leaders
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Past Market Observations, SiL 2013
◦ Channel Diversity
◦ Lighting mega-trends
◦ Trend predictions
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Talent market
Market threats
Ideas for success in the future
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Emerging trends
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Leased lighting
Franchised distributors
ESCO emergence
Electronic distributors
Channel consolidation
A/V installers
Controls integrators
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Trends updates
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Very little growth
Growing
Growing
Components only
Tipping point
Growing
Growing
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Lamp replacement
DC Power distribution
Building integration
Design
New markets
Consolidation
Alternative energy
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“Power Ball”
Gaining traction
Nascent
Lagging
Blue Ocean strategy
Darwinian
Synergistic
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Lighting will cease to pierce the plane of the
ceiling
Residential design will coalesce solar power and
native DC power distribution
Smart design will enable a new system approach:
Lighting, HVAC, Desk-top, Security, Sound, etc.
Quality Lighting and Quality Design will intersect
into a holistic smart building Gestalt.
The US lighting market will bifurcate: New Market
v. Installed Market
Unemployment Level as of April 2014 Some HS, HS, Some College, Degreed
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Boomers are retiring, GenY isn’t ready
Existing talent has been absorbed by the
rapid growth of new companies
Recession led to shallow bench strength
GM’s are dropping
Salaries are rising, rapidly
Influx of semicon talent, with little channel or
product application knowledge
Skills no longer match needs
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Limited access to talent that grasps the
emerging channel opportunities
Replacement lamps are overshadowing the
core lighting market
The explosion of technology is confusing the
core issue of selling lighting
Competition for reps is driving up SG&A and
diminishing the focus of reps
Buying influences are expanding and the
need for broader market coverage increases
Pick a strategy and develop a plan to own it
Focus closely on channel partnerships
Minimize the adhesions of the past
Develop synergistic alliances: controls,
software, integrators, security firms
Expand your grasp of building changes:
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HVAC, controls, security, communications
Installation, DC power, solar, technology R&D
Invest: Talent delivers the highest ROI
“In times of rapid change, experience could be
your worst enemy” J. Paul Getty
Ted Konnerth, PhD
tk@egretconsulting.com
847-307-7125