LYTS’s LEDs helped customers reduce their energy consumption by up to 67% in 2020
55% of steel that LYTS procures is recycled metal
LSI was awarded $100 million by the Quick-Service Restaurant Program to install menu boards at more than 6,000 branches of a major restaurant chain
The Path to Drawdown: LEDs
First invented in 1994, Light-emitting diodes (LEDs) were designed as high-brightness, high-efficiency light bulbs. They work like solar panels in reverse, by converting electrons to photons instead of the other way around. LEDs use 90% less energy than incandescent bulbs and half as much as compact fluorescents for the same amount of light. While other lighting technologies convert energy into heat (and wasting most of it), LEDs turn 80% of their energy use into light.
There are many environmental advantages to LED lighting. Its efficiency in converting energy into light, not heat, helps reduce electricity consumption and air-conditioning load. For people without ready access to ample energy, LEDs can be powered with small solar panels and can replace expensive kerosene lamps and their noxious fumes and emissions. Where LEDs are used in streetlights, they can save up to 70% of energy and significantly reduce maintenance costs.
Project Drawdown projects that if LEDs become widely used in the residential and commercial lighting market, they can avoid between 10.2 - 10.8 gigatons of CO2 emissions in residences, and between 5.9 - 6.7 gigatons in commercial buildings. To achieve this, the global market share of LEDs needs to scale rapidly:
- In 2018, LED lighting comprised 3% of the total commercial lighting market and 2% of the residential lighting market;
- By 2050, LEDs should account for 95% and 90% of the residential and commercial markets, respectively;
- That’s 12.82% CAGR for residential LED, and 11.21% CAGR for commercial LED lighting between 2018 - 2050.
LSI Industries, Inc. (stock ticker: LYTS) manufactures non-residential lighting and retail display solutions, most of which are LED. They also offer internet of things-powered retail solutions. They manufacture their products in 11 manufacturing plants in the US and Canada.
LYTS's Role in Drawdown
LSI Industries’ lighting segment provides LED solutions for a wide range of end-market customers, including automotive, quick-service restaurants, retail and grocery stores, parking lots, sports complexes, gas stations and convenience stores, and warehouses.
This segment accounts for 67.5% of LSI Industries’ total net sales. But this segment’s sales has been on the decline in the last several years, dropping by 7.5% annually between 2018 and 2020. They attribute this to increased competitiveness (p. 23) between 2018 and 2019, and to the decline in sales due to COVID-19 (p. 23) in 2020.
LYTS: What We Like
LSI Industry’s lighting segment is poised to rapidly increase sales over the next few years through acquisitions and awards:
- LSI acquired JSI Fixtures in May 2021, a major grocery store lighting solutions provider
LSI was awarded $100 million by the Quick-Service Restaurant Program (p. 10) to install menu boards with their own lighting at more than 6,000 branches of a major restaurant chain between 2020 and 2022