Why are LED prices rising in 2021? LED lighting prices have steadily declined in price since their introduction in 2010. Today we are seeing significant increases in price points together with diminishing availability.
Covid 19 plays a big part in why these products are now costing more. One of the primary issues is the chronic shortage of semiconductors worldwide, these electronic components are used in all electronics, so it’s not just LED lighting feeling the pain. From computers to car manufacturers this semiconductor shortage is being felt by many industries. As with everything when demand outstrips supply, prices go up! all indicators are that this shortage will not go away soon, expected to be late 2022 into early 2023 before supply chains get back to normal.
Another added problem affecting “why are LED prices rising” is logistics and the shortage of dockworkers in counties such as China. The bottleneck of container ships at both ports of laden and ports of arrival has caused big increases in ocean freight transportation. Today shipping container pricing has increased by over 500% compared to the same time last year.
LED lighting products are suffering from multiple issues, most related to Covid 19 impact this is “why are LED prices rising.” This chronic problem has put many smaller Chinese LED manufacturers out of business during 2021. Also smaller US LED importers have been forced to reduce their inventory levels as the costs escalate meaning their purchasing power has been cut drastically.
Several large US LED manufacturers have imposed multiple unprecedented price increases throughout 2021, this may not be the end as costs continue to climb.
Americas Best LED lighting represents Vootu LED products exclusively and currently, Vootu has inventory levels that are pre-Covid impact pricing. Others may be hiking their prices but Vootu still has commercial-grade LED lighting at low price points. Eventually, our pricing will increase, no one can prevent the impact of why are LED prices rising when this is a worldwide problem.
Americas Best LED can be contacted for help and assistance selecting the right product to meet your lighting needs, call us TODAY at 727 242 0008