LED Lighting Manufacturers in the United States Not Meeting Public Sector Demand

Austin, TX, June 09, 2014 - Public officials in the United States are installing new LED technology as quickly as they can discard old light bulbs and purchase LED bulbs. It is happening everywhere and as the new lights come on, savings are immediate. But, interestingly enough, the companies that can provide the volume of LED bulbs and fixtures being requested are new to government purchasing protocol. Their sales structure is designed for commercial purchasing – not government purchasing.

Government executives are quick to point out that energy costs are a big budget item and as prison facilities, courthouses, school campuses and public parks move to LED lighting, the savings are astounding. Taxpayers love the idea of cost savings coupled with environmentally friendly technology. But, finding large manufacturers that can fulfill the demand in the United States is difficult. It appears LED manufacturing firms are behind the curve when it comes to selling to government.

Public sector entities in Texas are embracing LED technology. Recently, the city of Dallas became one of the first major cities to replace traditional lighting fixtures at five city-owned parking garages. They predict huge savings. Similarly, the Dallas Independent School District installed LED lights that are projected to save the district hundreds of thousands in a short period of time.

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Texas is not alone. Last month, the city of Detroit began a $160 million overhaul of its streetlight system. The new LED bulbs are said to be twice as bright as the old high-pressure sodium lights. And, the new bulbs will use 40-55 percent less energy over their five- to eight-year lifetime. The project includes placing 42,200 streetlights on city streets in residential areas.

More recently, the city of Austin announced it would install 35,000 LED street lights that are expected to save the city more than $200,000 in energy costs. Last December, CPS Energy in San Antonio announced it would also install 20,000 LED city street lights.

Elsewhere, California plans to totally phase out the use of incandescent bulbs by 2018. Legislation has been filed in Connecticut and New Jersey to do the same.

But, what is likely the world’s largest initiative to replace street lights with LED technology was completed last year in Los Angeles. The $57 million retrofit affected 141,000 street lights and the city expects to reduce by two-thirds the energy consumed and reap a savings of $7 million while reducing carbon emissions by nearly 48,000 metric tons.

Other California cities are also moving to LED technology. Rancho Cordova is replacing 4,800 street lights with LED bulbs. Officials in West Sacramento expect to save about $225,000 per year through the addition of 2,500 LED lamps.

The city of Las Vegas installed LED fixtures in 42,000 street lights and Portland General Electric began switching 25,000 of its existing lights to LED in a project that will include five counties and 47 cities in Oregon. An interstate exchange in Idaho now has upgraded to LED lighting and the city of Newnan, Georgia, is installing LED street lights.

Most believe LED lighting will eventually be standard technology. There appears no doubt the trend will continue in government as long as the emphasis is on energy efficiency, conservation and cost reduction. As adoption of this technology continues to grow it will become clear to LED manufacturers and distributors that one of their largest marketplaces in the world is the public sector.

Suppliers of LED technology worldwide can accelerate their positioning in the United States public sector market by taking advantage of third party services that close the gap in terms of experience and know-how. Further information for LED technology providers regarding cooperative purchasing programs and contracting vehicles that make sales to public officials quicker and easier can be found at http://bit.ly/1kZ2ZiZ

About the Company
Strategic Partnerships, Inc. (SPI) is a full-service government affairs and procurement consulting firm. SPI teams work with clients to identify upcoming opportunities and capture new business. SPI is recognized as a pioneer in the business of partnering public and private entities for commercial purposes. For more information contact Anna Scott, Corporate/External Relations, at 512-531-3919 and/or visit http://bit.ly/1kZ2ZiZ

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