Lighting Industry

Signify leads industry with new year price increases

A row of spotlights in a supermarket
Signify spotlights at a branch of the Carrefour supermarket chain in Belgium. The company says luminaires prices are set to rise, blaming the hikes on a lack of supply of raw materials, especially polycarbonate and alloy.

SIGNIFY has become the first of the major lighting brands to announce major price increases for 2021.

The industry’s largest player blamed the hikes on a lack of supply of raw materials, especially polycarbonate and alloy. 

Another factor is increased transportation and import costs from China.

Trade website EdisonReport says that it has learned that Signify will increase prices in the US by up to 6 per cent.

From February 15, Signify will implement price increases for its portfolio of professional lighting products in North America as follows: conventional lamps by an average of 5 per cent; luminaires, ballasts and EvoKits by an average of 6 per cent; and LED lamps and electronics by an average of 3 per cent.

Europe is expected to see similar levels of price increases, which will vary from product to product and will come into effect from 1 January. 

In a statement, Signify, which sells its products under the Philips Lighting brand, said: ‘We are committed to serving and supporting our customers in these challenging times and have taken all the necessary steps to ensure our high quality and service continues in 2021’.

Last March, Signify raised price on all LED and lamp electronics due to the soaring cost of its logistics chains  due to coronavirus spread.

The company described the coronavirus epidemic as a ‘force majeure event’ which had led to considerable additional costs in its logistics chain. 

As a result, the company announced a ‘temporary increase’ of 3 per cent on all LED electronics, including emergency products, and lamp electronics – including magnetic and electronic ballasts – for orders placed from April.

It’s widely expected that price increase announcement from the industry leader will embolden other major brands to follow suit. 

In recent years, manufacturers have been complaining that they have absorbed unsustainable price increases in raw materials and transportation and say they would welcome what one described as ‘a return to sanity’ with pricing.