Established in 1998, the Index is a composite measure of lamps, luminaires, ballasts, emergency lighting, exit signs, and other lighting products shipped nationally and internationally from the United States by the 430 companies that comprise the National Electrical Manufacturers Association (NEMA). NEMA members manufacture a wide range of products used in the generation, transmission, distribution, and control of electricity, as well as innumerable end-use products in addition to those used in lighting. The value of NEMA members’ annual shipments totals $100 billion.

According to NLB Communications Director John P. Bachner, “The bad news is that third-quarter 2007 Index performance declined by 0.5% from second-quarter performance because of weak demand in the housing market. The good news is that the Index’ 2007 year-to-date performance is not substantially behind its average performance in 2004, 2005, and 2006, thanks to the continuing strength of the nonresidential markets.”

NEMA Economic Analysis Director Brian Lego reported that nonresidential construction activity has increased at “a healthy pace” that “has buoyed lighting equipment demand….Real investment in commercial, industrial and other nonresidential structures has increased by an average annualized pace of well above 10 percent for nearly the past two years. Going forward, spending on office buildings, lodging, and manufacturing plants is expected to slow down measurably, but the strength of corporate balance sheets and tightening vacancy rates will bolster demand for new space for the foreseeable future.”

Lego holds out little hope for near-term improvement in the residential sector, noting that single-family housing starts “fell to their lowest quarterly total in 15 years during the third quarter of 2007, having contracted by an average annualized pace of nearly 30 percent since the first half of 2006. Signs of a turnaround any time soon are not apparent either, since forward-looking indicators such as homebuilder confidence and building permit issuance paint a grim picture of future construction activity.”

The NEMA Lighting Systems Index can be viewed at www.nlb.org/Index

Established in 1976, the National Lighting Bureau is a not-for-profit, independent, lighting information source sponsored by professional societies, trade associations, manufacturers, and agencies of the U.S. government. For more information, refer to the NLB website (www.nlb.org) or contact NLB staff by telephone (301/587-9572) or e-mail (info@nlb.org).