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An Update on the State of the Lighting Industry

Due to global supply chain issues as a consequence of the COVID-19 pandemic, Vivio Lighting's regular business operations have been affected as a result. The state of shipping, manufacturing costs, and several other issues have affected our products arriving in our warehouse in a timely manner. 
 
The cost of many raw materials used in the manufacturing of lighting products has been increasing dramatically over the past few months. These materials include copper, steel, plastic, and glass with increases ranging from 15% to more than 40% over the past six months. Production for virtually everything cannot keep up with demand.
The cost to shipping containers has increased dramatically over the past few months, going from approximately $4k/container to over $12k/container, if even available. Over 50% of the loaded containers are being rolled at the ports, meaning being bumped from the scheduled sailing ship. These shipping costs alone increased landed cost by as much as 2-3%. There are currently shipping delays at both the shipping ports in China and the receiving ports in the US ranging from 8-10 weeks from the normal 3-4 weeks. Imported products that have previously had lead times that ranged from 90-120 days, have increased to 150-180 days.
 
Vivio Lighting always strives to provide the most value possible in our delivery of quality products at competitive prices. Vivio Lighting's experience in this industry provides a good understanding of what is required to bring our products to market, so we wanted to present you with some facts that are bound to impact all our businesses in 2021 and more than likely in the years to follow.