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GREENandSAVE is pleased to provide sector Trend Reports to monitor the temperature of different CleanTech market segments. The LED tube lighting industry is heating up, and this LED Wholesalers Report is just one more example of the recent traction.
LED wholesalers are naturally an integral link in the chain of distribution from the LED manufacturers through to the end users. The cost of LED Tube lights is so much higher than the cost of the traditional T12 and T8 fluorescent tube predecessor that there is significant trend shift underway. The most prevalent trend is the rise of the Value Added Resellers (VARs) and the Energy Services Companies (ESCOs) that may eat away at the margins of the traditional lighting wholesalers that aspire to sell wholesale led bulbs.
Well engineered LED tubes are as much of an energy technology as a lighting technology, so the VARs and ESCOs are well positioned to sell the Return on Investment (ROI) “solution” vs. the “commodity” of traditional light bulbs or tubes. The LED wholesaler is still very key but in most cases the VARs and ESCOs provide the lighting audits directly for the end user and then work to source the product from the LED tube manufacturer. The market for wholesale LED lights may grow significantly when the architects, lighting designers, and specifiers create the demand for installing LED tubes in new construction. The new construction demand would intern create the demand for stocking distributors to offer wholesale LED lights to regional dealers and the universe of electrical contractors.
Since the vast majority of commercial lighting is “linear” the LED tube will dominate the volume of the LED wholesale industry. As LED distributors look for the best deals on the market to maximize their margins the demand for “led light bulbs wholesale” will ramp up.
Trends on Terms of the Trade for LED Wholesalers:
The term “LED Light” is quickly becoming redundant given that Light Emitting Diode (LED) has the word Light in the name. So, “LED lights wholesale” and “LED Bulbs wholesale” will most likely shift to just “LED Wholesale” in short order.
View from inside the LED Tube Industry:
Charlie Szoradi is the Chairman and CEO of Independence LED Lighting (www.IndependenceLED.com), a leading U.S. Manufacturer of LED tube lights that sells to LED wholesalers as well as to VARs, ESCOs, and others though its Authorized Reseller Network. Mr. Szoradi reports, “The LED tube industry continues to mature, and we have seen LED wholesalers ask questions that are entirely different from even a year ago. The questions previously centered around cost, while they are now focused on quality and longevity. I believe that the end users have sent a powerful message that has been heard loud and clear by LED Tube Distributors and the range of companies that wholesale LED tubes. The message that we hear is centers around the failures of the imported LED tubes from Chinese manufacturers. The overseas LED tube manufacturers typically offer internal driver LED tubes and LED tubes without any meaningful heat sinks. The wholesale LED demand for better LED tube Quality Assurance, Certifications, Thermal Management on Heat Sinks, and External Drivers, has all set a new performance standard. We welcome the shift toward a new demand on quality for the companies that wholesale LEDs.”
