NOVEMBER 2004
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TOP STORY
U.S. Construction Jumps, Hits New Record of $1 Trillion
FINANCIAL NEWS
Genlyte Group Announces 11% Sales Increase
Juno Lighting Announces 21.4% Sales Increase
Acuity Brands Lighting Announces 6% Increase in Sales
Catalyst Lighting Group Announces Commencement of Private Placement
TIR Systems Selling 2.2 million Shares to Raise $10M
Divcom Lighting Reports 233% Increase in Earnings
INDUSTRY NEWS
NHTSA’s Crackdown Continues on Illegal Lighting
NEMA Helping Companies Cope with Counterfeiting
Counterfeiting the Subject of Architectural Lighting Magazine “Exchange”
Daylight Dividends Publishes School Case Study
LSI Announces Gene Moore Awards
Forum to Address Business Issues in Construction
TIR Wins $1.4 Million in New Lighting Orders
OSHA Launches Safety Web Page for Residential Construction
Energy Star Now Accepting Award Applications
Energy User News Magazine Announces EE Building Award Winners
NLPIP Publishes New Color Guide
Lighting Research Center Studies LEDs in Supermarkets
NLPIP Expands Online Lighting Q&A
Varon Lighting, Inc. Partners with Hellux GH
Advance Earns A-D’s “Best Exclusive Program” Award For 2003-2004
Lighting Research Center Proposes Photometry System to Accommodate Mesopic Vision
Universal Display Corporation Wins $750,000 DOE Contract
Color Kinetics Earns New Patent
DOE and NIST Grant Cree $4.2 Million in Funding
Research Report Finds Thriving Lighting Fixtures Industry in China
Vancouver Goes for the LEED Gold
Labor Department Announces Grant of About $4.3 Million to Train and Recruit Workers for Construction Industry Careers
ODDS AND ENDS
Maui considering low pressure sodium ... survey finds most young people consider a job in construction to be "unattractive" ... Ohio University Student Senate takes a "lighting walk" to call for need for lighting to make the campus safer ... construction employment in Ireland up 5% ... should the lighting of a national monument be changed for a good cause?
ECONOMIC NEWS
September Economic Indicators
Electroindustry Business Confidence Stays Steady in September
Consumer Confidence Weakens in September
Manufacturing Gets Boost in September
U.S. Job Growth Weaker Than Expected
Foreign Investment Shows Decline, with Possible Major Implications for Economy
PEOPLE
TOP STORY
U.S. Construction Jumps, Hits New Record of $1 Trillion
U.S. construction spending increased twice as much as was expected in August, hitting a seventh consecutive monthly record high, with the value of put in place construction valued at a seasonally adjusted rate of $1.02 trillion, according to the U.S. Commerce Department, 0.8% (±1.9%), 10.1% (±2.4%) above the August 2003 estimate of $922.0 billion.
During the first 8 months of this year, construction spending amounted to $646.8 billion, 9.4% (±1.6%) above the $591.2 billion for the same period in 2003.
Private Construction: Spending on private construction was at a seasonally adjusted annual rate of $777.7 billion, 1.4% (±1.9%) above the revised July estimate of $766.8 billion. Residential construction was at a seasonally adjusted annual rate of $550.6 billion in August, 1.7% (±1.9%) above the revised July estimate of $541.5 billion. Nonresidential construction was at a
seasonally adjusted annual rate of $227 billion in August, 0.8% (±1.9%) above the revised July estimate of $225.3 billion.
Public Construction: In August, the estimated seasonally adjusted annual rate of public construction spending was $237.6 billion, 1% (±2.9%) below the revised July estimate of $240.1 billion. Educational construction was at a seasonally adjusted annual rate of $62.9 billion, 2% (±4.2) below the revised July estimate of $64.2 billion. Highway construction was at a
seasonally adjusted annual rate of $64.7 billion, 2.9% (±7.7%) below the revised July estimate of $66.6 billion.
FINANCIAL NEWS
Genlyte Group Announces 11% Sales Increase
The Genlyte Group Incorporated has announced that its Q3 2004 sales of $303.1 million were 11.1% higher than the $272.8 million reported last year. The increase in net sales was due primarily to higher shipments and better pricing for certain products, said the company, and also reflects the benefit of $1.3 million from recent acquisitions. The backlog decreased $13.8 million or 13.7% to $87.3 million at October 2, 2004 from July 3, 2004, reflecting the shipment of orders placed in advance of the May price increase as well as the normal seasonal pattern for the non-residential construction market.
The Genlyte Group completed on July 31, 2004 the acquisition of the 32% minority interest in Genlyte Thomas Group LLC (GTG) owned by Thomas Industries Inc. for a cash price of approximately $402 million. Sales during the nine-month period increased 15.3% to $881.9 million from $764.8 million.
Q3 2004 results include a $5.3 million one-time amortization expense related to the step-up of inventory and backlog for purchase accounting adjustments related to the acquisition of the 32% minority interest in GTG. In addition, the company recognized $.5 million of increased depreciation and amortization expense related to the step-up of property, plant and equipment and intangible assets attributed to the acquisition.
During the third quarter, the company recognized a $1.6 million foreign currency exchange loss related to the translation of US dollar denominated investments and receivables held by the Canadian divisions.
The New Oxford Aluminum and USS Manufacturing acquisitions during 2004 and the Shakespeare Composite Structures acquisition during the second quarter of 2003 contributed $17.7 million of the $117.1 million sales increase.
"We are concerned that although we increased prices during May, our costs for steel, freight, energy, ballasts and employee benefits have substantially offset any price increases, and the cost increases are escalating. Accordingly, we have announced another price increase of between 5% and 10% effective in November 2004," says Chairman, President and CEO Larry Powers.
He adds, "We are beginning to see a recovery in some of the markets we service, however lighting is one of the last building materials to be installed in any construction project. The overall commercial construction outlook reflects a soft rebound during the next year or two. Office, retail and high-end hospitality markets continue to be relatively soft. Residential construction markets remain surprisingly strong. We have seen some recent strength in sales for healthcare construction business. The retail and school construction, which is normally strong during the third quarter, was about the same as last year. As always, we continue to take actions to minimize these economic issues. These actions include our ongoing industry leadership in product development, price increases, a refocusing of our sales force toward the more active markets including healthcare and other institutional facilities, and continued cost containment actions."
Juno Lighting Announces 21.4% Sales Increase
Juno Lighting, Inc. has announced that for the quarter ended August 31, 2004 sales increased 21.4% to $63.2 million compared to third quarter 2003 sales of $52 million.
Sales for the first nine months of fiscal 2004 increased 22.4% to $178.1 million compared to $145.5 million for the like period in 2003.
Acuity Brands Lighting Announces 6% Increase in Sales
Acuity Brands has announced that net sales at Acuity Brands Lighting in Q404 were $422.6 million compared to $398.1 million reported in the year-ago period, an increase of $24.5 million, or 6%.
Acuity Brands, Inc., with fiscal year 2004 net sales of over $2.1 billion, is comprised of Acuity Brands Lighting and Acuity Specialty Products. Acuity Brands Lighting is a leading manufacturer of lighting fixtures and includes brands such as Lithonia Lighting, Holophane, Peerless, Hydrel, American Electric Lighting, and Gotham. Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 11,000 people and has operations throughout North America and in Europe and Asia.
The increase in net sales at Acuity Brands Lighting was due primarily to higher shipments and better pricing for certain products, according to the company. The backlog at Acuity Brands Lighting decreased $51.2 million, or 25%, to $152.8 million at August 31, 2004 from May 31, 2004, reflecting the shipment of orders placed in advance of a price increase effective in May and the normal seasonal pattern for the non-residential construction market.
"I am pleased to report that we again demonstrated meaningful improvement in our financial performance while experiencing no tangible improvement in the non-residential construction market,” says Vernon J. Nagel, Chairman and CEO of Acuity Brands. “We delivered these positive results while incurring costs and inefficiencies to redeploy resources within the supply chain at ABL that we anticipate will strengthen future performance and while confronting rising raw material costs company-wide. For example, the increased cost of steel reduced consolidated operating profit by approximately $5 million in the fourth quarter as compared to the prior year.”
He adds: "We expect that fiscal 2005 will be a challenging year, as we are cautious about the potential for a meaningful recovery in the non-residential construction market and expect that prices for certain components and raw materials (particularly steel and petroleum-based products) will continue to increase dramatically.”
Catalyst Lighting Group Announces Commencement of Private Placement
Catalyst Lighting Group, Inc. has commenced a private placement of units on a reasonable efforts basis with expected aggregate gross proceeds of $2-4 million. Each unit currently is expected to consist of Catalyst’s common stock, as well as five-year warrants to purchase the company’s common stock at an exercise price of $3.00 per share.
Catalyst intends to utilize any proceeds of the private placement to fund the retirement of a significant portion of its subordinated debt, to finance the growth of its business expansion, including by way of acquisitions, fund product development and general working capital.
Catalyst Lighting Group, Inc., through its sole subsidiary, Whitco Company, LP, manufactures and markets light poles for the commercial and industrial markets. The company sells and distributes its products through a network of more than 70 agents stationed throughout the United States.
TIR Systems Selling 2.2 million Shares to Raise $10M
Vancouver-based TIR Systems Ltd. recently announced that is has issued 2.2 million shares at $4.50 each in the hopes of raising $10 million. TD Securities acted as the lead underwriter; the underwriters have the option to buy up to an additional 333,500 shares on the same terms. Shares in TIR, which were halted pending the news, traded down $0.40 at $4.75 before trading resumed on the Toronto Stock Exchange.
Divcom Lighting Reports 233% Increase in Earnings
Montreal-based Divcom Lighting Inc. says its Q3 profit jumped 233% to $470,000 as revenue surged after a recent acquisition.
Earnings for the quarter ended August 31 amounted to 1.11 cents per share and compared with $141,000 or 1.09 cents per share a year earlier, when there were fewer shares outstanding.
Revenue increased to $5.9 million from $1.3 million as this year’s acquisition of Snoc Inc. boosted income.
Montreal-based Divcom is the parent corporation of a group of lighting companies that make energy-efficient lighting products for urban communities, roadways and tunnels, as well as lighting for public, commercial, industrial, residential and custom uses.
INDUSTRY NEWS
NHTSA Continues Crackdown on Illegal Lighting
Continuing its crackdown against manufacturers and suppliers of illegal lighting equipment, the National Highway Traffic Safety Administration (NHTSA) recently announced its decision that high intensity discharge (HID) conversion kits produced by a Texas company do not comply with federal safety standards.
The owner of ASTEX USA, a supplier of aftermarket HID kits, was ordered to conduct a recall campaign and provide a no-cost solution to the customer. The company is based in Dayton, TX. When installed in a motor vehicle, the HID kits “can be expected to produce excessive glare to oncoming motorists and others,” NHTSA said in its decision.
To date, NHTSA has investigated 24 HID conversion kit suppliers; all investigations have resulted in recalls or termination of sales.
“These illegal lights are a potential hazard to those who share the road,” says NHTSA Administrator Jeffrey Runge, MD. “And we will continue to pursue those offering them for sale and violating the law.”
Companies that sell, import or manufacture non-compliant equipment could face substantial civil penalties, NHTSA said.
NEMA Helping Companies Cope with Counterfeiting
The National Electrical Manufacturers Association (NEMA)’s anti-counterfeiting program is helping manufacturers address growing concerns over unscrupulous manufacturers of knock-off products that threaten public safety.
“The continued growth of counterfeit electrical products is a real concern for us,” says Randy Carson, Senior VP and Group Executive of Eaton’s Electrical business. Eaton is one of several manufacturers working with NEMA.
“We’re in the business of improving the safety and performance of our customers’ facilities,” says Carson. “When counterfeit products enter the market, property and lives are put at risk. Our responsibility to our customers, our Westinghouse heritage, and our current brands is to increase awareness of the issue, educate those who can make an impact, and assist law enforcement agencies whenever possible.”
NEMA’s Anti-Counterfeiting Committee, established in 2003, helps NEMA members understand how to protect their intellectual property rights, informs the public about counterfeit electrical products, exchanges information with other organizations concerned about counterfeiting, and works with law enforcement and public officials to address this problem.
The Bureau of Customs and Border Protection currently seizes approximately $1 million per month in counterfeit electrical merchandise, up from $4.5 million worth of counterfeit electrical products seized in total from 1997 through 2002. Those products not seized often end up in the market.
“Counterfeiting is growing,” says Clark Silcox, General Counsel for NEMA. “In fact, last November and December shipments of products such as extension cords and power strips totaling $8 million were seized. It’s tough to put hard numbers on the counterfeit electrical market, but based on the anecdotal evidence I hear, it’s happening everywhere.”
The damage of counterfeiting goes beyond the obvious economic loss to original equipment manufacturers. Counterfeit products jeopardize the performance of electrical systems and place personnel in danger of electrical accidents. While hard data does not exist tying counterfeit products to industrial accidents, in 1999 there were 17,200 industrial facility fires, according to the National Fire Protection Association (NFPA). These events resulted in 29 deaths, 609 injuries, and $1.1 billion in direct property damage.
“Counterfeit electrical products are a threat to the health and safety of anyone who uses electrical products,” Silcox says. One product that is particularly susceptible to counterfeiting because of its small size and ubiquity is the low voltage circuit breaker. It is the most common type of over-current protection, ensuring the safe flow of electricity in residential, commercial, and industrial applications. Without circuit breakers, the safe flow of electricity becomes nearly impossible. Lives and property are put at risk when breakers do not perform properly.
“Counterfeit circuit breakers,” Silxcox says, “have been found that are nothing more than a good looking switch providing no electrical protection whatsoever.” In addition to jeopardizing code compliance and personnel safety, use of unauthorized products can invalidate existing warranties.
For example, counterfeit breakers installed in switchgear can void the switchgear warranty. Warranty issues oftentimes result in unnecessary repair and replacement costs for the end user.
“Engineers and operators are on the frontlines of defense against counterfeiting,” says Silcox. For their safety and for that of others, NEMA encourages them to know their original equipment and replace suspect equipment with new, approved products.
Counterfeiting the Subject of Architectural Lighting Magazine “Exchange”
Architectural Lighting Magazine recently published a new “exchange” at its website. Below is the question:
QUESTION: Copying is said to be a form of flattery, but when it occurs at the scale of the global marketplace is it? With the overwhelming increase in the production and sale of counterfeit goods worldwide, how do designers and manufacturers protect their intellectual property? The issue of copying products within the lighting industry seems to have struck a particular nerve within the industry. How do these "knock-offs" affect the design and manufacturing process? How are small start-up companies affected as they try to enter the lighting marketplace? What can the lighting industry do to respond to this issue as it affects both designers and manufacturers?
To see the answers submitted by five manufacturers, click here.
Daylight Dividends Publishes School Case Study
The Daylight Dividends program recently released the first of three case studies that evaluates daylighting designs in non-residential buildings. The first study explores effective design strategies for schools through an assessment of one school built specifically to harvest the benefits of daylight.
Daylight Dividends, a program administered by the Lighting Research Center (LRC), is a national effort to help people reap the human and economic benefits of good daylighting design in buildings. Daylight Dividends is a program sponsored by the U.S. Department of Energy, New York State Energy Research and Development Authority, California Energy Commission, The Connecticut Light and Power Company, Iowa Energy Center, Northwest Energy Efficiency Alliance, and the North Carolina Daylighting Consortium.
Smith Middle School, located in Chapel Hill, NC, was built from the ground up with daylighting and other environmental features in mind. Incorporating good daylighting practice into the building’s design yielded positive results in energy savings and comfort, as well as a reasonable return on the added investment, says Peter Morante, LRC’s Director of Energy Programs and principal investigator for the case study.
Architects integrated south-facing roof monitors into the school’s design to provide the majority of daylighting within the building. The monitors allow the electric lighting to remain at a low level most of the day, reducing internal heat gains and the need for additional cooling. Cloth baffles within the monitors help distribute the light uniformly and eliminate glare. Fluorescent lighting installed in the classrooms operates on dimming ballasts with photosensors and motion sensors to limit unnecessary electric lighting.
 Interviews and surveys conducted with the school principal, teachers, maintenance personnel and students indicated a high degree of satisfaction with the daylighting and overall comfort of the school, according to Morante.
“Teachers love the amount and quality of light provided by the daylighting scheme. Many times teachers do not even turn on the lights because their lighting needs are met by just the daylighting,” he says. Some maintenance issues were identified, including difficulties with commissioning the lighting controls, cleaning the baffles, and replacing expensive dimming ballasts.
The case study also documents energy savings and increases that resulted from the daylighting strategy employed at Smith Middle School. Morante noted that the school reduced its lighting energy consumption by approximately 64% and its cooling energy by 20% through the daylighting design. Heating energy increased by approximately 20% because the lighting systems produced less heat. Total energy savings can be used to offset the added costs to build a daylit school, says Morante. “While the cost to construct the school increased, the annual energy costs were reduced, giving the school district a payback of four years for their daylighting investment.”
For more information about Smith Middle School and its daylighting design, download the free case study from the Daylight Dividends Web site.
LSI Announces Gene Moore Awards
Founded 13 years ago by manufacturer Lighting Services Inc, the Gene Moore Awards recognize the talent of display window designers, who can actually make holiday shopping fun. The awards program is named for the legendary Tiffany & Co lighting designer, Gene Moore.
The program is open to designers who use LSI products in their creations. This year's winners were:
First Place: Shelly Sabel's holiday 2003 design for the Ralph Lauren Sport store in New York City, titled The Ski Lodge. Sabel will receive a prize of $2,500.
Second Prize: James Ranson of Saks Fifth Avenue for his 2003 Symphony of Christmas at the company's flagship store. He receives $1,500.
Third Prize: Janis Bell, national visual director at Holt Refrew in Toronto, for the The Night Before Christmas display.
The deadline for the 2004 Gene Moore Awards is November 30, 2004. For more information, click here.
Forum to Address Business Issues in Construction
With the construction industry facing ever diminishing profit margins due to competition from design-build firms, construction management firms, increased labor costs and other factors, there
is a strategic need for developing profitable relationships--business
development. Critical to any firm's business development efforts is the
company's ability to stand out from the competition. In response to this need,
Strategic Research Institute and Business Development Journal will host the
"Business Development Strategy: Securing Your Vision in Construction" forum,
Dec. 1-2, in Las Vegas.
Designed to guide the A-E-C executive on how to effectively promote their
company's services, cultivate new markets to gain new business, and compete
with the more established names in the industry for lucrative contracts, this
event features presentations and panel discussions on issues readily
applicable to any burgeoning company with a desire to be at the forefront of
the construction industry. Attendees will benefit from useful information to
enhance their business development efforts, secure the latest updates on the
economic outlook of the markets and how they can affect their company's
future, and establish contacts through networking with other A-E-C executives.
Featured Speakers Include:
Richard A. Belle
Director, Public Affairs
DESIGN-BUILD INSTITUTE OF AMERICA
Tony Stewart
VP, Business Development
SKANSKA USA BUILDING
Richard Condit
Chief Administration Officer
SUNDT CONSTRUCTION
Linda Louis
Executive Director
NATIONAL ASSOCIATION OF MINORITY CONTRACTORS
Chris Hornbeck, A.I.A
Vice President, Business Development
FISHER DEVELOPMENT
David Allen
VP, Business Development and Brand Management
MCKINSTRY COMPANY
Gary Craig
President
PROJECT EDGE
Phil Beck
Senior Partner
SMITH, CURRIE, & HANCOCK
Don Gendall
Director, Business Development
THE WEITZ COMPANY
John Myrna
President
MYRNA ASSOCIATES
Enrico Brandise
Vice President
MARSH
Patrick Hicks
Managing Shareholder
LITTLER MENDELSON (Las Vegas)
Alex Aybar
Publisher & COO
BUSINESS DEVELOPMENT JOURNAL
Larry Silver
President
CONTRACTOR MARKETING
Chris Carruth
Vice President
HARDIN CONSTRUCTION
To register, call (888) 666-8514, email info@srinstitute.com or click here to visit their website.
TIR Wins $1.4 Million in New Lighting Orders
TIR Systems Ltd. recently announced receipt of orders totaling $1.4 million for its Destiny Series of architectural Solid State Lighting (SSL) products. This revenue is expected to be recognized in fiscal 2005.
The Destiny Series consists of six products which address a wide range of functional requirements for architectural lighting applications. The products are Destiny CW, Destiny CG, Destiny CV, Destiny DL, Destiny SL and Destiny LP. All except Destiny CW were launched into the global markets starting in March 2004 at Lightfair International in Las Vegas followed soon after at Light+Building 2004 in Frankfurt and Elenex 2004 and World Lightfair 2004 in Hong Kong and Japan respectively. The majority of these orders are for the newly launched products.
To find out more about TIR, click here.
OSHA Launches Safety Web Page for Residential Construction
The Occupational Safety and Health Administration (OSHA) has launched a new safety website page for residential construction.
The web page, created with guidance and assistance from the National Association of Home Builders (NAHB), contains information and tips specifically related to safety and health for workers in residential construction, and features information about OSHA standards that apply to residential construction, the hazards present in residential construction, and solutions available to the industry.
From the web page:
"An estimated 1.6 million Americans are employed in the construction industry, half of which work in residential construction. Each year, roughly 38,000 construction injuries are reported, with some 21,000 involving days away from work. Many OSHA standards apply to residential construction for the prevention of possible fatalities. This page provides information about those standards, and the hazards present in residential construction. It was developed in cooperation with the National Association of Home Builders (NAHB) as part of the OSHA-NAHB Alliance."
To visit the page, click here.
Energy Star Now Accepting Award Applications
Adapted from the Energy Star Website:
Each year, the US Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) honor organizations that have made outstanding contributions to protecting the environment through superior energy efficiency.
All organizations participating in ENERGY STAR are encouraged to apply for a 2005 ENERGY STAR Award. To be considered, an organization must meet the specific eligibility requirements in the award application and submit a complete application package by December 15, 2004. Applicants should be sure to respond to all of the award criteria specified in the application and not exceed specified page limitations. Organizations may apply for more than one award if they meet the eligibility requirements. In such cases, a complete award application package must be submitted for each award.
More detailed instructions on application submissions are included as part of each award package below.
Efficient Products
Partner of the Year - Product Manufacturers
Partner of the Year - Retail Partners
ENERGY STAR National Product Campaign Award
Efficient Buildings/Facilities
Partner of the Year - Leadership in Energy Management
Excellence in Promoting Superior Energy Performance
Efficient Homes
Partner of the Year - New Homes
Excellence in Home Improvement
General
Regional, State and Community Leadership in Energy Efficiency
Award winners will be recognized at the ENERGY STAR Awards Ceremony on March 15, 2005 in Washington, DC.
For more information, contact Karen Schneider or click here.
Energy User News Magazine Announces EE Building Award Winners
Energy User News (EUN) presented its 2004 Energy Efficient Building Awards in a special session held on the show floor of the World Energy Engineering Congress on September 22, 2004. Five awards were presented—one for the Energy Manager of the Year and four for award-winning projects.
The Energy Efficient Building Awards recognize innovations in building management and energy efficiency, in either retrofits or new construction throughout North America, which provide unique building solutions and also achieve significant energy and cost savings. Projects are evaluated by a panel of judges on a variety of criteria including payback, annual dollar and energy savings, additional environmental benefits, integration of energy-efficient technologies or strategies and innovations in design, strategy, or financing
Kevin Heslin, editor of EUN, awarded Energy Manager of the Year to Mark Barich, energy manager of Summa Health Care Systems. According to Siemens Building Technologies which nominated Barich and SUMMA, Barich “has assumed responsibility for the $5.5 million SUMMA utility budget since 1994 and played the lead role in defining program objectives, evaluating vendors, reviewing and directing program options and in establishing agreeable methodologies for tracking the impact of the program.”
EUN recognized the University of New Mexico (UNM) as Project of the Year for a series of campus-wide physical plant utility projects that addressed the university’s need for significant repair, improvement, and upgrade of its utility systems. Summa Health Care received the award for Best Retrofit Project, for their energy project that enabled two integrated, acute-care hospitals, St. Thomas and Akron City, and numerous distributed care centers to meet the challenge of funding significant growth and expansion plans.
Best New Construction Project was awarded to Western Milling CHP, a large animal feed processor in California that with the aid of Cummins Cal Pac implemented a project to control its energy costs for electric power and steam generation.
Ridge Lytton Vineyards received the award for Best Renewable Project for its ambitious goal of creating a winery that would utilize as many environmentally friendly techniques as possible, resulting in a new winery and tasting room that has a very low environmental impact and is made from self-sustaining materials.
NLPIP Publishes New Color Guide
The National Lighting Product Information Program (NLPIP) has released a new publication that looks at color and  explains how it can be measured and quantified. Lighting Answers: Light Sources and Color examines methods to approximate color perceptions in people. Color is not a physical property of objects, but rather a human physiological and psychological response to light. A host of measurements are now available to describe such factors as the color appearance of light sources and objects, the ability of a light source to render colors accurately, and the stability of color properties over a lamp’s lifetime. The human visual system is complex, however, so these measures are only approximations, and their usefulness is limited.
 The lighting industry needs to quantify color properties, and in order to provide information useful for specifying electric light sources properly, Lighting Answers: Light Sources and Color describes many of the methods for characterizing the color properties of light sources. It also addresses these methods’ strengths and weaknesses. Part I focuses on the metrics used to describe the appearance of light emitted from a light source, and it describes the human color vision system. Part II focuses on the color appearance of objects when illuminated by a light source. It proposes a “triangulation” method for describing color rendering to help lighting specifiers to select light sources based on their ability to show object colors. This section also discusses the relationship between color rendering and luminous efficacy (lumens per watt). Older light source technologies forced a trade-off between the two, but many products now available provide both good color properties and high efficacy.
To download this publication for free, click here.
Lighting Research Center Studies LEDs in Supermarkets
The Lighting Research Center (LRC) is evaluating light-emitting diode (LED) technology for use in commercial display freezers. The study, funded by the New York State Energy Research and Development Authority (NYSERDA), will evaluate performance, energy savings, shopper preferences, and product sales for this technology compared with the fluorescent lighting currently found in supermarket freezers.
The LRC is collaborating with GE’s GELcore, the Golub Corporation (Price Chopper supermarkets), and Tyler  Refrigeration (a division of Carrier Corp.) on this project. The team recently installed a four-door freezer with a prototype LED lighting system in the frozen-food aisle at an Albany, N.Y.-area Price Chopper supermarket.
N. Narendran, PhD, LRC Director of Research, says of the new field study, “To the best of our knowledge, this is the first freezer to operate with advanced white LED technology on a supermarket retail floor.” During the next several months, LRC researchers will survey shoppers about the LED freezer and a similar fluorescent-lighted freezer to determine shoppers’ lighting preferences. Shoppers will evaluate the attractiveness and the clarity of the merchandise within each freezer case. The LRC also will analyze sales data to determine whether the freezer lighting has any influence on consumers’ buying habits. Results will be presented in spring 2005.
In a prior laboratory study, the LRC developed a prototype refrigerator lighting system using LEDs with the goals of reducing energy usage and producing better illumination for the merchandise. The results showed that the LED lighting system produced more uniform illumination on the displayed products and was strongly preferred by more people than traditional fluorescent lighting  in this application. LRC researchers also estimated that when the efficacy of white LED lighting systems reaches 38 lumens per watt, LEDs will use less energy than traditional fluorescent lamps in this application. The efficacy of white LED lighting systems currently stands at approximately 24 lumens per watt and is expected to exceed 38 lumens within two years.
Finding more efficient ways to light freezer and refrigerator cases is important because supermarkets spend nearly half of their electricity costs on refrigeration. Though fluorescent lighting is generally considered energy efficient, these lighting systems do not perform well inside freezers, says Dr. Narendran.
“Cold temperatures decrease the light output of fluorescent lamps and, at the same time, reduce their operating life,” he says. The final result is increased power consumption and more frequent maintenance, which impact the overall cost of operating the lamps. Improvements in white LEDs, however, are showing potential for these light sources to have better efficiency than fluorescent lamps. “LEDs are not plagued with the cold temperature problems affecting fluorescent lamps, which means energy and maintenance costs can be reduced in the long run by using LEDs inside freezers.”
NLPIP Expands Online Lighting Q&A
From the National Lighting Product Information Program (NLPIP) website:
Do you have a lighting question? If so, NLPIP most likely has the answer. The National Lighting Product Information Program recently expanded its online FAQ section to include nearly 200 questions and answers in a broad range of lighting topics. Examples of FAQs include:
• Can a T5 lamp replace a T12 or T8 lamp?
• Can LEDs be dimmed?
• How hot are halogen torchieres?
• How can task lighting maximize energy savings?
A short answer is provided for each question along with a link to the NLPIP publication that covers that topic. In some cases, a link to a more detailed answer is provided. Online visitors can view the questions and answers for a particular topic by selecting one of several categories.
The FAQs were developed from previously published NLPIP Lighting Answers publications, which help lighting professionals, contractors, designers, building managers, homeowners, and other consumers find and effectively use efficient, quality products that meet their lighting needs. New FAQs will be added as new Lighting Answers become available.
To see the new Q&A section, click here.
Varon Lighting, Inc. Partners with Hellux GH
Varon Lighting, Inc. has announced a new alliance with Hellux Leuchten GH, a multinational manufacturer of architect-designed, pedestrian-scale, pole- and building-mounted outdoor area and site lighting.
Hellux products are used by specifying architects, lighting engineers and professional lighting designers throughout Europe. With the new alliance with Varon Lighting, the Hellux line will now be available in North America.
Hellux lighting products will continue to be designed and manufactured in Germany, but will be assembled, finished and inventoried at Beacon Products, Inc., a Varon subsidiary, in Sarasota, FL. They will be sold through the new Visio Division of Beacon Products, headed by Edward J. Kramer, IESNA.
All Hellux products distributed in the U.S. will be UL listed for wet locations, backed by strong warranties and completely compatible with standard U.S. installation and maintenance procedures.
For more information, contact Beacon Products, Inc., 6503 19th Street East, Sarasota, FL 34243, (941) 755-6694, fax (941) 751-5535 or email: info@beaconproducts.com.
Advance Earns A-D’s “Best Exclusive Program” Award For 2003-2004
Advance Transformer Company recently earned the “Best Exclusive Program” Award for 2003-2004 presented by Affiliated Distributors (A-D), a network of independent distributors representing the electrical, plumbing, PVF (pipe, valves, and fittings), and industrial distribution channel.
The award recognized the success of Advance’s “Ballastpalooza” promotion, an A-D-exclusive program that resulted in record participation and strong sales results among A-D affiliates. The award was presented at A-D’s annual North American Meeting of its Electrical Supply Division (ESD) in Dallas, TX in September 2004.
For more information about Advance Transformer, click here.
Lighting Research Center Proposes Photometry System to Accommodate Mesopic Vision
Lighting specifiers selecting outdoor fixtures typically consider the luminous efficacy of a fixture in order to gain maximum energy efficiency. However, the problem, Lighting Research Center (LRC) researchers say, is that the lumens per watt value is based on a photometry system that does not consider how the human visual system works at light levels typically found outdoors at night. To correct this problem, LRC researchers have proposed a new system of photometry designed to characterize light at any light level.
The current photometry system, says LRC Director Mark Rea, uses one of two luminous efficacy functions, each of  which represent the sensitivity of the human eye at different light levels. The first and most common method, the photopic luminous efficacy function, represents the spectral sensitivity of the eye during the daytime. The second, known as the scotopic luminous efficacy function, characterizes sensitivity in near-complete darkness. Between photopic and scotopic is the mesopic region, which describes nighttime light levels experienced outdoors that are neither complete darkness nor complete light.
“The problem with the current photometry system is that it remains unclear which luminous efficacy function should be used for nighttime applications where electric lighting is used, such as driving down the road at night,” says Rea, who directed the LRC team’s research into the new system. Without a system that works at all light levels, he says, some light sources used at night draw excess energy to put out the necessary light level.
The proposed unified system characterizes light at all light levels using the parameter X, which describes the proportion of photopic light at any luminance. At high light levels, X equals 1; at scotopic levels, X equals 0. At mesopic levels, X falls in between. LRC researchers express the value of X as a function of the photopic light level (candelas per square meter) and the ratio of the photopic and scotopic efficacy for the light source.
Rea notes that with this system, lamp manufacturers and lighting practitioners can continue to use conventional photometric measurements using the photopic luminous efficacy function. “The system preserves existing measurements, which can be extended with values of X to compare the effectiveness of different light sources to produce a required luminance.” Potential results for this system, he says, include increased energy efficiency, reduced light pollution, and added safety and security at night.
A detailed explanation of the new photometry system can be found in the journal article “A proposed unified system of photometry” by Rea, Bullough, Freyssinier-Nova, and Bierman, published in Lighting Research and Technology, volume 36, issue 2.
If you would like a copy of the paper from the LRC library, please email Julia Ceriotti at cerioj@rpi.edu.
Universal Display Corporation Wins $750,000 DOE Contract
Universal Display Corporation, a developer of organic light emitting diode (OLED) technologies for flat panel displays, lighting and other opto-electronic applications, has been awarded a $750,000 Small Business Innovation Research (SBIR) Phase II contract from the U.S. Department of Energy (DOE) to develop and demonstrate advances in its OLED technology for energy-efficient, white lighting. This program is a continuation of a DOE SBIR Phase I program awarded in 2003.
In this program, entitled, “Low Voltage, High Efficiency White Phosphorescent OLEDs for Lighting Applications,” Universal Display and its partners will continue their development of high luminous efficiency white phosphorescent OLEDs using techniques that lower the device operating voltage. Lower voltage is important to the future of solid-state OLED lighting because it results in further reductions in power consumption, making these light sources more energy efficient. With these advances, in combination with the company’s OLED technology, it is believed that OLEDs have the potential to achieve the energy efficiency targets to be an attractive alternative to incandescent and fluorescent lighting.
According to a report prepared for the U.S. Department of Energy, over $25 billion per year could be saved by 2025 if solid-state lighting is successfully adopted. With the further advantages of a thin, lightweight and even flexible lighting form factor, OLEDs have become an important component of the Department of Energy’s Solid-State Lighting (SSL) initiative as a leading technology candidate for the next-generation general lighting market.
For more information about Universal Display Corporation, click here.
Color Kinetics Earns New Patent
Color Kinetics Incorporated, a developer of solid-state lighting systems and technologies, has been awarded a patent relating to the synchronization of intelligent solid-state lighting systems and effects.
Issued October 5, 2004, US patent number 6,801,003 covers certain systems and methods for synchronizing lighting effects between various LED-based lighting systems without the use of a network. For example, one means for synchronizing lights is monitoring fluctuations in the power that is delivered. The patent covers methods that are applied today in pool and spa lighting systems, and has potential for use in other fields such as specifier- grade architectural lighting, retail and display lighting, and consumer products that require the intelligence for synchronized lighting effects without the network infrastructure.
“The ability to synchronize LED-based lighting effects without the use of a network represents another innovation in intelligent control, and allows for wider-ranging applications in both new and existing lighting environments,” says George Mueller, Chairman and CEO, Color Kinetics.
For more information about Color Kinetics, click here.
DOE and NIST Grant Cree $4.2 Million in Funding
Cree, Inc., a developer of light emitting diode (LED) technology, has announced that the Advanced Technology Program (ATP) through the National Institute of Standards and Technology and the National Energy Technology Laboratory (NETL), on behalf of the US Department of Energy’s Office of Building Technologies, have selected Cree to receive a combined total of $4.2 million in funding for solid-state lighting research and development. The two programs, which remain subject to the negotiation and execution of contract terms and conditions, aim to reduce cost and energy consumption for general lighting.
The ATP project goals include the ability to quadruple the brightness and double the efficiency of existing LED systems, and reduce the cost per lumen using a white LED lamp. The research will span three years and be conducted in cooperation with Nanocrystal Lighting Corporation. The selection criteria for the ATP award were rigorous and Cree was selected based on the difficulty of the proposed project, the level of technical innovation required to accomplish the goal and the potential for significant benefits to the nation’s economy.
The NETL project aims to provide a viable replacement for the energy inefficient incandescent light. This research and development program will also span three years targeting the development of an array of small-area LEDs with integrated optics, thermal management and electrical power handling circuitry.
“The innovation resulting from these programs should create more energy-efficient and cost-effective products,” says Chuck Swoboda, Cree’s President and CEO.
Research Report Finds Thriving Lighting Fixtures Industry in China
Research and Markets, a major European market research firm, has announced the publication of “The Lighting Fixtures Industry in China.” The report covers China, Hong Kong and Taiwan. A breakdown of lighting fittings exports and imports is provided by country and product (residential lighting, commercial lighting, lighting fixtures components, Christmas and traffic lighting).
The report offers a comprehensive picture of the lighting fixtures industry in China, providing trends in lighting fixtures production and consumption, lighting products imports and exports for both indoor and outdoor lighting, as well as data on the supply structure and company profiles.
The report provides a breakdown of lighting fixtures production, by province, by segment (residential lighting, commercial lighting, industrial lighting, outdoor lighting) and by light sources used (traditional incandescent, halogen incandescent, linear fluorescence, gas discharge, LED).
Data on residential lighting are broken down by style (traditional, modern and design lighting) and by positioning of the source of light (floor lights, table lights, wall lights, ceiling lights, suspensions), while data on commercial lighting are broken down by single product (downlights, fluorescence systems, projectors, spotlights, entertainment lights).
Data on productive concentration and employment are also provided. Lighting fixture’s sales by country and product, are provided for a sample of companies, as well as short company profiles.
Addresses of 220 among Chinese and Hong Kong lighting fixtures companies are also included.
Products covered by the report include indoor lighting, outdoor lighting, decorative lighting, residential lighting, architectural lighting, commercial lighting, industrial lighting, urban landscape lighting, technical outdoor lighting, traditional lighting, modern and design lighting, floor lamps, table lamps, wall lamps, ceiling lamps, traditional incandescent lighting, halogen incandescent lighting, compact fluorescence lighting, linear fluorescence lighting, gas discharge lighting, fluorescence systems, downlights, projectors, spot lights, lighting fittings, lamps, electrical materials.
For more information, click here.
For more information about the company’s U.S. lighting fixtures market research report, click here.
For more information about the company’s European lighting fixtures market research report, click here.
Vancouver Goes for the LEED Gold
During the summer, the City of Vancouver announced the adoption of green building standards, LEED for British Columbia (LEED-BC), for all new civic buildings greater than 500 square meters. New public buildings must achieve the Leadership in Energy and Environmental Design (LEED) Gold certification. The City also mandated specific energy points in the LEED Rating System to ensure a 30% energy reduction in all new civic buildings.
LEED-BC, licensed to Canada by the U.S. Green Building Council (USGBC), is a performance based tool that rates different elements of building design and construction to ensure better environmental performance. LEED-BC has been tailored to meet the needs of the British Columbia market and will be administered by the Canada Green Building Council (CGBC).
”No other city has raised the bar to the level of LEED Gold, and we look forward to more cities following their leadership,” says Rick Fedrizzi, USGBC President, CEO & Founding Chairman.
LEED Gold is an ambitious standard which only two buildings in Canada have qualified for to date. Both of these buildings are in British Columbia. The expectation of the City, with the adoption of the LEED Gold standard, is to save the taxpayers of Vancouver millions of dollars in long-term operating costs and encourage other municipalities to take similar action in support of the environment.
The announcement also serves as a catalyst to promote greening of the 2010 Winter Olympics, which will be held in the City of Vancouver.
“This firmly establishes Vancouver’s reputation as a North American leader in green building not to mention the positive statement this sends to the world from a municipality that will be hosting the 2010 Winter Games,” says Joe Van Belleghem, Vice Chair, CGBC and Board Member, USGBC.
Labor Department Announces Grant of About $4.3 Million to Train and Recruit Workers for Construction Industry Careers
Secretary of Labor Elaine L. Chao recently announced a grant of nearly $4.3 million to the Home Builders Institute (HBI) to recruit, educate, and train about 2,500 high school students, incumbent and dislocated workers for career opportunities in the construction industry.
The Bureau of Labor Statistics estimates that 279,000 additional tradesmen and women will be needed in the construction industry by 2012.
Through this grant, HBI and its partners will establish an associate’s degree or equivalent credential that addresses the skills needed in residential construction. Ten construction trade academies will be established across the nation to offer training in carpentry, electrical, plumbing, and heating and air conditioning crafts. The program products and educational tools will be disseminated to community colleges and vocational training centers for replication throughout the country.
Key partners in the project include the Home Builders Association of Kentucky, the Florida Home Builders Association, the South Carolina Home Builders Association, York Technical College in South Carolina, and the American Association of Community Colleges.
ODDS AND ENDS
In the bad ideas department, a Maui County Council committee is now considering a lighting ordinance designed to reduce interference with astronomical observations at the summit of Haleakala. The ordinance requires shielding, but also low sodium lamps for outdoor lighting in new developments. It also calls for upgrading public and private street lighting and parking lots and for resorts with shielding and low pressure sodium lamps once these older systems require replacement. Maui’s Police Department is worried that the new street lights would increase traffic accidents and inhibit detection of crime. The Police Captain said the use of low pressure sodium lamps makes it difficult to determine the color of vehicles and clothes. As usual, municipalities should consult lighting professionals before passing lighting laws.
In the U.S., young people see a job in construction as not very desirable, despite a projected labor shortage and good opportunities. According to new research commissioned by Tarmac, 75% of young people consider a career in construction as “unattractive.” About 1,600 people between the ages of 16 and 55, and living across the country, were surveyed. For more results from the study, click here.
New Mexico ’s Construction Industries Division has collected $324,981 in fines from unlicensed contractors so far this year, and expect the fines to top $500,000 by the end of the year. Contracting without a license has been called one of the top illegal construction activities.
Architecture+ of Troy and Petersen Group Architects of Clifton Park have been selected to head a consortium of firms selected to design and oversee the expansion of the passenger terminal at Albany International Airport. The $1.7-million design phase for the new Concourse D is fully funded by federal grants. Other partners in the consortium include Sage Engineering LLP of Albany, N.Y.; C.T. Male Associates PC of Colonie; Ysrael A. Seinuk PC Consulting Engineers of Schenectady; Clark Engineering & Surveying of New Lebanon; AvAirPros of Naples, Fla.; G2 Project Planning Inc. of New York City ; and Matthews Nielsen Landscape Architecture of New York City. Martin Wander, designer of the current airport terminal, is also part of the consortium.
Columbus Air Force Base has received more than $8 million for construction projects from the 2005 Military Construction Appropriations bill, which was signed last month and puts aside $62 million for Mississippi military installations. Columbus Air Force Base will get $7.7 million for building a new fire and rescue station and $711,000 for a family housing project. The bill also includes $1.3 million for construction of a Weapons of Mass Destruction/Civil Support Team Facility in Jackson. Gulfport will be receiving $4.65 million for construction of an Organizational Maintenance Shop and $4.35 for a new Vehicle Maintenance Facility. Camp Shelby has been funded $5.3 million for a new training facility for Military Operations in Urban Terrain (MOUT), with $2.7 million for the construction of a wastewater treatment facility. Keesler Air Force Base in Biloxi was appropriated $35.8 million for privatization of family housing.
The Ohio University Police Department has been investigating lighting on campus after students expressed concerns about safety in a Student Senate lighting walk to demonstrate unsafe areas. While crime has not been on the increase on campus, Student Senators say improved lighting will make the campus safer as a whole and deter sexual assaults in particular. Ohio University ’s facilities management staff zeroed in on areas where trees blocked the light emitted from existing fixtures, and has dedicated $400,000 for new lighting.
Construction employment in Ireland is up 5.1%, with the monthly employment index increased from 100.5 in August 2003 to 105.6 in August 2004. The annual increase in employment was 4.9% for July 2004. Average wages and salaries increased by 8.1% to 36,028 Euro.
The National Park Service was not happy about plans to light St. Louis' 630-ft.-tall Gateway Arch monument in pink today in recognition of Breast Cancer Awareness Month. A spokesperson for the Park Service said they oppose the precedent, not the cause, saying it opens the Arch up to other organizations making similar requests. Congress approved the lighting of the arch at the request of Senator Jim Talen (R-Mo), whose mother died of breast cancer in 1988. The spokesperson said monuments such as the Arch are considered "sacred sites," and pointed out that "the color or the style or the functon was all the result of those architects and design. They're pieces of art, and we don't want to see changes, even temporarily."
ECONOMIC NEWS
September Economic Indicators
North American EBCI Remains Unchanged in September
The National Electrical Manufacturers Association (NEMA) announced that its Electroindustry Business Confidence Index remained essentially changed in September, edging down by less than one point to 56.3. The Europe and Asia/Pacific indexes, both of which stood at 50 points last month, improved to 56.3 and 54.2 points, respectively. In contrast, the Latin America index contracted sharply from 67.6 in August to 50.0 this month.
Following 12 months during which the index reflected improving conditions, the reading of 50 should be interpreted as indicating that conditions are unchanged from that improved level. However, the worrisome nature of a reading of 50 index points is that it reflects, on aggregate, no improvement in business conditions, and the potential for contraction is uncomfortably close.
The Electroindustry Business Confidence Index indices gauge the business confidence of the electroindustry in Asia, Europe, North America, and Latin America, and are based on the results of a monthly survey of senior managers at NEMA member companies. Those companies represent more than 80% of the electroindustry.
For a complete summary of the September index, including charts and a list of participating companies, click here.
To see historical NEMA’s Electroindustry Business Confidence Indices, click here.
Consumer Confidence Weakens in September
U.S. consumer confidence dipped in September, suggesting that Americans remain uncertain about the job market and overall economy.
The University of Michigan’s Index of Consumer Confidence fell to 94.2 in September from 95.9 in August, according to market sources who saw the subscription-only report. Analysts had been looking for a slight increase to 96.0.
The current conditions component declined to 103.7 from 107.9 while the expectations index declined to 88.0 from 88.2.
Manufacturing Gets Boost in September
Manufacturing activity increased in September for the sixteenth straight month, but at a slower pace than August, according to the Institute for Supply Management (ISM).
ISM reported that its manufacturing index registered 58.5 in September, down from 59, and in August, and higher than the 58.3 predicted by analysts.
An ISM reading of 50 or above means that the manufacturing sector is expanding, while a figure below 50 represents a contraction. The index has been above 50 since June of last year.
Improving manufacturing activity has some economists predicting a long, sustained economy recovery, but also additional interest rate hikes by the Fed. Other economists are predicting that interest rates will stay the same until the end of 2005 due to uncertainty and weaker-than-expected job numbers.
U.S. Job Growth Weaker Than Expected
The Labor Department announced that the U.S. economy added 96,000 new jobs in September, lower than expected. Wall Street economists had been predicting 148,000. The Labor Department also revised its estimate of new jobs created in August from 144,000 down to 128,000.
The unemployment rate is holding steady at 5.4%.
Nonfarm payroll employment continued to trend upward in September, increasing by 96,000, and the unemployment rate was unchanged at 5.4%, the Bureau of Labor Statistics of the U.S. Department of Labor reported in October. Over the prior 3 months, payroll employment rose by 103,000 on average. In September, modest job gains occurred in a few service-providing industries.
Unemployment (Household Survey Data): The number of unemployed persons was unchanged at 8.0 million in September, and the unemployment rate held at 5.4%, seasonally adjusted. The jobless rate is down from its most recent high of 6.3% in June 2003; most of this decline occurred in the second half of last year.
Total Employment and the Labor Force (Household Survey Data): Total employment was about unchanged in September at 139.5 million, and the employment-population ratio—the proportion of the population age 16 and over with jobs—was little changed at 62.3%. Over the month, the civilian labor force was essentially unchanged at 147.5 million. The labor force participation rate was 65.9% in September and has been at or near that level since late last year.
About 7.7 million persons (not seasonally adjusted) held more than one job in September. These multiple jobholders represented 5.5% of total employment, compared with 5.2% a year earlier.
Persons Not in the Labor Force (Household Survey Data): The number of persons who were marginally attached to the labor force was 1.6 million in September, about the same as a year earlier. (Data are not seasonally adjusted.) These individuals wanted and were available to work and had looked for a job sometime in the prior 12 months. They were not counted as unemployed, however, because they did not actively search for work in the 4 weeks preceding the survey. There were 412,000 discouraged workers in September, little changed from a year earlier. Discouraged workers, a subset of the marginally attached, were not currently looking for work specifically because they believed no jobs were available for them. The other 1.1 million marginally attached had not searched for work for reasons such as school or family responsibilities.
Industry Payroll Employment (Establishment Survey Data): Total nonfarm payroll employment increased by 96,000 in September to 131.6 million, seasonally adjusted. Payroll employment has risen by 1.8 million since
reaching a trough in August 2003, with about half of the gain (885,000) occurring in March, April, and May. Since May, payroll job gains have totaled 405,000. Employment increases in September occurred in financial activities, professional and technical services, and temporary help services.
Construction Employment: Construction employment was about unchanged in September and has shown little growth since May.
“The economy has been through a great deal lately—devastating hurricanes and rising oil prices,” says U.S. Secretary of Labor Elaine Chao. “Yet the unemployment rate remains at 5.4% and 96,000 jobs were created last month. This shows the strength and resilience of our economy and that the labor market continues to improve.”
According to the best estimates, it now appears that about 585,000 jobs have been lost since President Bush took office in January 2001.
Foreign Investment Shows Decline, with Possible Major Implications for Economy
I don’t know what scares me more these days, oil or the national debt.
The U.S. government, which runs a deficit, must frequently raise money through periodic offerings of long-term Treasury bonds. Typically, foreign investors gobble up a large percentage of these bonds. But in September, they did not come in expected numbers for an offering of 10-year Treasury notes. As a result, bond prices fell and interest rates rose until Wall Street stepped in and bought almost the entire auction.
After a 20% decline in buying in July, private foreign investors sold $4.4 billion more in Treasury bonds than they bought in August. In July, foreign bank purchases declined 76% but rebounded in August, saving the dollar from a possible tumble. Foreign stock purchases declined in August as well with a net sell-off. Lending from foreign governments in particular exploded last year -- to $109 billion, up from $7.1 billion in 2002.
Foreigners hold about half of the $3.7 trillion in outstanding Treasury bonds. The government has become heavily dependent on these sources of cash to pay for the roughly $1 billion it spends a day on its bills. Foreign investment and lending also help finance the U.S. trade deficit, which is about $600 billion a year. Foreign capital also keeps U.S. stock prices high.
Economists are hoping that the lack of enthusiasm for U.S. Treasury bonds may be a fluke, and not a bearish trend. If it’s a trend, it could damage the U.S. economy while raising interest rates and hurting the value of the dollar.
When “borrowing” from the Social Security fund is discounted, the average U.S. taxpayer currently spends 22% of his or her taxes on covering interest payments on the national debt. That means the average U.S. taxpayer currently works about 2.5 months a year to pay taxes for which he or she gets virtually nothing.
PEOPLE
Crestron has appointed Richard Hurst as Director of Sales & Marketing for Lighting Control Products.
Catalina Lighting has promoted Jim Scott to the position of Senior Vice President of North American Sales.
Color Kinetics has appointed David Emma to the position of Vice President, OEM and Licensing.
Con-Tech Lighting has promoted Patty Beck to the position of Manager of Quotations and Technical Support, Alice Werner to the position of Customer Service Manager, and Steve Schafraneck to the position of National Accounts Customer Service Manager. Con-Tech has also hired Mickey Scherer and Dan Hama into the Quotations and Technical Support Department.
Syska Hennessy Group, Inc. has promoted Muhannad Abdulhamid, PE to the position of Managing Director of the firm’s Los Angeles office.
John P. Murphy has joined Juno Lighting’s board of directors and was appointed to the Board's audit committee.
Wayne R. Hellman and Sabu Krishnan have resigned from Fiberstars’ Board of Directors.
Edward J. Kramer has been named Division Director for the new Visio Lighting division of Beacon Products, Inc., a subsidiary of Varon Lighting, Inc. |
