VividGro, the horticultural LED division of Lighting Science, announced that it has built partnerships with U.S. suppliers to domestically produce LED fixtures with cost-effective solutions and has moved back its manufacturing lines back to the U.S. since the beginning of 2018.
VividGro has relocated its production and assembly of all of its product lines in Rockledge, Florida, since the first quarter of 2018. Through strategic partnerships with domestic suppliers, the company has minimized its overseas sourcing and managed to create local job opportunities with its products and components manufactured in the U.S., according to VividGro.
(Image: VividGro)
With local and smaller batch production, the company can now flexibly provide customized solutions according to specific client needs while saving the cost of shipping and storing. With production lines beginning to run by 3Q18, robust sales are continuing to support the new business model in the fourth quarter.
Albert Tomasko, Vice President of Operations for VividGro, said “When you look at the price per assembly, it seems like doing business in China at first glance appears to be a good idea. But when you consider the massive quantities that need to be bought, shipped, insured, and stored, the benefit decreases dramatically.”
“We aren’t limited to modifying what is already in stock: we can work with our clients to create truly customized assemblies without sacrificing our industry-leading standards for quality and competitive pricing,” Tomasko stressed.
Since the U.S. government imposed the tariffs on Chinese products in July, several LED lighting companies have taken measures to deal with the extra cost. Current by GE, LEDVANCE, Eaton and Acuity Brands have announced price increases in response to the increased tariffs. Some producers such as VividGro and Neo Lights Holding have moved their production lines out of China to avoid the tariffs.
The U.S. and China have agreed to suspend the new tariffs for 90 days at a post-G20 summit meeting on December 1st. The impacts of the current trade truce on the industry of LED lighting are still pending.
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