Signify CEO cites renewed interest in energy efficiency

As economists debate whether the world has tipped into recession, the CEO of the world's largest lighting company clearly believes it has. But with part of the problem being soaring energy prices, Signify boss Eric Rondolat sees a revitalized interest in efficient LEDs, spelling top-line growth.

"We are facing a recession at this point in time," Rondolat told one analyst who had inquired about the prospects for growth during a second-quarter financial results call last week. "What we don't know is the magnitude of that recession."

While no one can accurately predict exactly what will happen in geopolitics and the global economy, Rondolat is certain about the current mix of business within Signify: Sales volumes are down in the company's consumer division — known as "Digital Products" — but are well poised for growth in the commercial division — "Digital Solutions."

The strong outlook in the commercial sector including offices, schools, factories, warehouses, outdoor public spaces, and so on relates to the money that end users save using LEDs as opposed to conventional lighting, and to the extra savings accrued when they connect LED luminaires into smart control systems.

Payback time

Energy savings is by no means a new story in the LED narrative, but it is now an even more compelling one given the rampant escalation of fossil fuel prices.

"We see a renewed traction on energy-efficient lighting, and also a renewed traction on 'connected' as it brings additional energy savings," Rondolat said.

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Source: LEDs Magazine