End Users are now expecting that lighting products are provided with 10, 15, even 20 year warranties. Due to the manner in which some manufacturers issued warranties, major end users such as local authorities now insist that warranties are backed with capital set aside, tying up huge cash reserves.
Such cash reserves, deter smaller manufacturers, playing into the hands of global lighting companies. This represents the single major barrier to smaller manufacturers winning larger contracts detrimentally impacting growth and future value.
Warranties are becoming the new battleground. Major manufacturers utilise their size and trading history to dominate on large contract tender submissions, where smaller manufacturers struggle to compete even when offering more cost effective and efficient products due to their limited trading history.