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The Manufacture of Electric Lamps and Lighting Equipment South Africa

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2020

Yasmin Mahomedy | South Africa | 21 April 2020

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2016

Yasmin Mahomedy | South Africa | 13 April 2016

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2014

Yasmin Mahomedy | South Africa | 22 May 2014

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Introduction

This report focuses on the manufacture of electric lamps and lighting equipment in South Africa, where about 80 million general service lamps are sold annually. General service lamps refers to standard incandescent lamps, light emitting diode (LED) lamps and any other lamp that is intended for general usage. The industry has seen declining sales mainly due to lack of economic growth and infrastructure spending, and for some companies, reduced demand from Eskom as a result of its financial problems. Electricity costs have tripled in the past decade and compact fluorescent lamps have in recent years played a key role in energy efficiency campaigns. There are basic safety and performance regulations for older lighting technologies, compact fluorescent lamps and incandescent lamps, but there are no safety or performance standards for LEDs, which are able to reduce energy and maintenance costs compared to compact fluorescent lamps. The industry has appealed to government to regulate and protect consumers from cheap inferior and potentially dangerous products that are imported mostly from Asia.

Strengths

• Lighting products are needed in all sectors of the economy.
• The industry evolves quickly in line with international trends, mainly because of R&D by multinationals.
• The new products manufactured by the industry contribute to energy saving and the environment.

Weaknesses

• Ineffectual enforcement of regulations and inadequate testing and sampling of imported products allows sub-standard products to enter the market.
• Lack of consumer knowledge and awareness on quality and relative life cycle costs of lamps.
• No regulations for LEDs, often resulting in sub-standard products entering the market.
• South Africa cannot compete with imports from Asia on price.

Opportunities

• Demand for more efficient products due to the country’s power shortage.
• Expansion into the rest of Africa.
• Increasing urbanisation.

Threats

• Increasing numbers of cheap imports.
• Slow economic growth.

Outlook

South Africa’s electricity crisis and the increasing cost of electricity will place greater demand for energy efficient and cost effective lighting. This is expected to lead to growth in demand for LED lighting. However, this will be largely dependent on consumers being educated and willing to pay more upfront for quality lamps. Shaun Nel, manager at Ellies Electronics stated that, “within reason, consumers could be motivated to buy better quality lamps, however it was the responsibility of government and regulation and enforcement to clean up the current state of low-quality lamps which have flooded the South African market.” Early forecasts by economists suggest significant economic disruption from coronavirus and the associated lockdown, which is costing the economy an estimated R13bn per day. The economic impact of the coronavirus crisis and the weak exchange rate will affect the industry and the cost of all imported goods, including electric lamps.

Manufacture of Electric Lamps and Lighting Equipment in South Africa
Manufacture of Electric Lamps and Lighting Equipment in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 25.07 (USD)*

Historical Reports

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2016-04-13

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2014-05-22

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 4
4.1. Local 4
4.1.1. Corporate Actions 10
4.1.2. Regulations 10
4.1.3. Enterprise Development and Socio-Economic Development 12
4.2. Continental 13
4.3. International 13
5. INFLUENCING FACTORS 14
5.1. Economic Environment 14
5.2. Input Costs 15
5.3. Technology, Research and Development (R&D) and Innovation 15
5.4. Labour 16
5.5. Environmental Concerns 17
6. COMPETITION 17
6.1. Barriers to Entry 18
7. SWOT ANALYSIS 18
8. OUTLOOK 19
9. INDUSTRY ASSOCIATIONS 19
10. REFERENCES 19
10.1. Publications 19
10.2. Websites 19
APPENDIX 1 21
Summary of Notable players 21
COMPANY PROFILES 25
ACTOM (PTY) LTD 25
AFRISON (PTY) LTD 33
ANTAY PROPERTIES CC 35
ARB HOLDINGS LTD 36
BEKA SCHREDER (PTY) LTD 39
BERGSTROM INDUSTRIES (PTY) LTD 42
E LIGHTING MANUFACTURERS (PTY) LTD 44
ENERGYWISE SYSTEMS (PTY) LTD 45
L E D LIGHTING SOUTH AFRICA (PTY) LTD 47
LEDVANCE (PTY) LTD 49
LIGHTING INNOVATIONS AFRICA (PTY) LTD 51
LIGHTNET (PTY) LTD 53
LUMOTECH (PTY) LTD 54
MAGNITECH (PTY) LTD 56
MATELEC (PTY) LTD 58
MULTISOURCE TECHNOLOGIES (PTY) LTD 60
NORDLAND (PTY) LTD 62
RADIANT GROUP (PTY) LTD 64
SCHNEIDER ELECTRIC SOUTH AFRICA (PTY) LTD 66
SIGNIFY COMMERCIAL SOUTH AFRICA (PTY) LTD 68
VANGIFLASH (PTY) LTD 70
VOLTEX (PTY) LTD 72

Report Coverage

The Manufacture of Electric Lamps and Lighting Equipment describes the industry in South Africa, highlights current conditions and discusses the factors influencing the success of the sector. Twenty-four industry players are profiled, including ACTOM, the largest manufacturer and distributor of electro-mechanical equipment in Africa which has 43 operating units, 44 production, service and repair facilities and 40 distribution outlets throughout Southern Africa. Also profiled are Radiant Lighting, BEKA Schréder, Phillips South Africa and Osram, large lighting manufacturers and suppliers of local and imported products.

Introduction

This report focuses on the manufacture of electric lamps and lighting equipment in South Africa. South Africa’s continued energy constraints, the increasing cost of electricity as well as the country’s energy policy which states that by 2016 all conventional light bulbs must be replaced by energy-efficient ones, has been driving growth for energy-efficient products in the lighting industry. Although the light emitting diode (LED) market is showing strong growth, there are concerns that if effective regulatory mechanisms are not introduced and enforced, then cheaper imported products will continue to flood the market and pose a threat to local manufacture.

Strengths

• Lighting products are needed in all sectors of the economy.
• The industry evolves quickly in line with international trends, mainly because of R&D by multinationals.
• The new products manufactured by the industry contribute to energy saving and the environment.

Weaknesses

• Energy-efficient alternative lighting is still more expensive than older technologies.
• Ineffectual enforcement of regulations and inadequate testing and sampling of imported products allows sub-standard products to enter the market.
• South Africa cannot compete with imports from Asia as far as price is concerned.

Opportunities

• Demand for more efficient products due to the country’s power shortage.
• Expansion into the rest of Africa.
• Government’s infrastructure programme.
• Increasing urbanisation.
• The development of alternative electricity sources such as solar power.
• Use of LEDs in other fields such as automotive lighting.

Threats

• Delays in government’s infrastructure projects or insufficient local procurement.
• Increasing numbers of cheap imports.
• Slow economic growth.

Outlook

The increasing cost of electricity as well as the country’s electricity shortages are expected to continue to drive growth in the lighting sector, as already seen in the increasing demand for solar and rechargeable lights. Analysts concur that local manufacturers will have to keep up to date with rapidly evolving LED technology and find solutions to deal with the influx of cheaper imports. According to Henk Rotman, Philips Lighting South Africa, “An urgent effort is needed from all stakeholders with Eskom and government in the driver’s seat” to promote the use of energy-efficient solid state lighting products such as LEDs.

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Manufacture of Electric Lamps and Lighting Equipment in South Africa
Manufacture of Electric Lamps and Lighting Equipment in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2020-04-21

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2014-05-22

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 11
4.2. Continental 12
4.3. International 14
5. INFLUENCING FACTORS 15
5.1. Lack of Regulation and Increasing Imports 15
5.2. Labour 15
5.3. Economic Environment 16
5.4. Environmental Concerns 17
5.5. Technology, Research and Development (R&D) and Innovation 18
6. COMPETITION 19
6.1. Barriers to Entry 20
7. SWOT ANALYSIS 20
8. OUTLOOK 21
9. INDUSTRY ASSOCIATIONS 21
10. REFERENCES 21
10.1. Publications 21
10.2. Websites 21
COMPANY PROFILES 23
ACTOM (Pty) Ltd 23
Afrison (Pty) Ltd 32
ARB Holdings Ltd 34
BEKA Schreder (Pty) Ltd 38
Bergstrom Industries (Pty) Ltd 40
Energywise Systems (Pty) Ltd 42
Flolite Manufacturers CC 44
L E D Lighting South Africa (Pty) Ltd 46
Lighting Innovations Africa (Pty) Ltd 48
Lightnet (Pty) Ltd 50
Lumotech (Pty) Ltd 52
Magnet Electrical Supplies (Pty) Ltd 54
Magnitech (Pty) Ltd 56
MATelec (Pty) Ltd 58
Multisource Technologies (Pty) Ltd 60
Nordland (Pty) Ltd 62
Osram (Pty) Ltd 64
Philips South Africa (Pty) Ltd 67
Rabro and Sturdy Products CC 69
Radiant Group (Pty) Ltd 71
Reeflite (Pty) Ltd 74
Schneider Electric South Africa (Pty) Ltd 76
Vangiflash (Pty) Ltd 79
Voltex (Pty) Ltd 81

Introduction

In response to technological changes, the South African lighting industry, with an approximate value of R5bn per annum, has changed its focus from the manufacture of inefficient, incandescent bulbs to the manufacture of energy efficient technologies such as compact fluorescent bulbs (CFLs) and light emitting diode (LEDs). South Africa was the first African country to adopt a comprehensive phase-out policy for inefficient lighting and will completely phase out incandescent lamps by 2016 in line with global trends. South Africa’s continued energy constraints, the increasing cost of electricity and pressure on consumers to move to more sustainable options is driving growth for energy efficient products in the lighting industry.

Strengths

• Lighting products are needed in all sectors of the economy.
• The industry evolves quickly in line with international trends, mainly because of R&D by multinationals.
• The new products manufactured by the industry contribute to energy saving and the environment.

Weaknesses

• Ineffectual enforcement of regulations and inadequate\ntesting and sampling of imported products allows\nsubstandard products to enter the market.
• More energy efficient alternative lighting is still more\nexpensive than older technologies.
• South Africa cannot compete with imports from Asia as far as price is concerned.

Opportunities

• Consumer education opportunities.
• Expansion into the rest of Africa
• Government’s infrastructure programme.
• Increasing urbanisation.
• The development of alternative electricity sources such as\nsolar power, broaden the market.
• The need for more efficient products because of the 2016\ndeadline for phasing out inefficient products.

Threats

• Increasing numbers of cheap imports.
• Slow economic growth.

Outlook

According to Envirolight Managing director, John Rice, “As Eskom continues to increase prices and put pressure on companies and individuals to reduce consumption, demand for energy efficient lighting solutions will increase.” As a result, the LED lighting market is expected to grow by a compound rate of 20% annually until 2016, so the local LED manufacturing sector should benefit from this growth. However, if effective regulatory mechanisms are not introduced and effectively enforced, then cheaper imported products will continue to flood the market and pose a threat to local manufacture.

Manufacture of Electric Lamps and Lighting Equipment in South Africa
Manufacture of Electric Lamps and Lighting Equipment in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 25.07 (USD)*

Historical Reports

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2020-04-21

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Manufacture of Electric Lamps and Lighting Equipment in South Africa 2016-04-13

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
3. SIZE OF THE INDUSTRY 2
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Corporate Actions 5
4.1.2. Regulations 5
4.1.3. Black Economic Empowerment 6
4.2. Continental 6
4.3. International 7
5. INFLUENCING FACTORS 8
5.1. Economic Environment 8
5.2. Increasing Demand for Energy Efficient Lighting Solutions 8
5.3. Imports and Government Regulation 8
5.4. Technology and Information Technology 9
5.5. Labour Resources 9
5.6. Environmental Concerns 9
6. COMPETITION 10
6.1. Barriers to Entry 10
6.2. Research and Development (R&D) 10
6.3. Innovation 11
7. SWOT ANALYSIS 11
8. OUTLOOK 11
9. INDUSTRY ASSOCIATIONS 12
10. REFERENCES 12
10.1. Publications 12
10.2. Websites 12
ORGANOGRAM 13
COMPANY PROFILES 15
ACTOM (PTY) LTD 15
BEKA (PTY) LTD 20
BERGSTROM INDUSTRIES (PTY) LTD 22
FLOLITE MANUFACTURERS CC 23
LED LIGHTING SOUTH AFRICA (PTY) LTD 24
LIGHTING INNOVATIONS (PTY) LTD 25
LIGHTNET (PTY) LTD 27
LUMOTECH (PTY) LTD 28
MAGNITECH (PTY) LTD 29
NORDLAND (PTY) LTD 30
OSRAM (PTY) LTD 31
PHILIPS SOUTH AFRICA (PTY) LTD 33
RABRO & STURDY PRODUCTS CC 34
RADIANT GROUP (PTY) LTD 35
REEFLITE (PTY) LTD 37
RML LIGHTING (PTY) LTD 38
SCHNEIDER ELECTRIC SOUTH AFRICA (PTY) LTD 39