April 1, 2026

Comprehensive Analysis of the Canadian Lighting Industry

Survey Period January – March 2026

Executive Summary

The Q1 2026 Pulse of Lighting Market Survey reveals a lighting industry experiencing modest growth amidst cautious optimism. The survey captured insights from lighting industry professionals across three key market segments: Electrical and Lighting Distributors (37.04%), Lighting Manufacturers (35.19%), and Electrical Representatives/Agents (27.78%).

Key findings indicate mixed performance across market segments, with distributors showing the most conservative outlook. While project business demonstrated improvement, through-stock counter sales declined for nearly half of distributors. Manufacturers reported stronger growth trajectories, and the industry shows significant adoption of artificial intelligence tools, particularly for research and email communications.

The forward-looking sentiment for Q2 2026 suggests cautious optimism, with manufacturers and representatives generally more positive than distributors about near-term prospects.

Survey Demographics

The survey achieved balanced representation across the lighting industry value chain:

Respondent Category	Percentage
Electrical and Lighting Distributors	37.04%
Lighting Manufacturers	35.19%
Electrical Representatives/Agents	27.78%
Total	100%

Table: Survey respondent composition by market segment

This distribution provides a comprehensive view of market conditions across manufacturers, channel partners, and independent representatives, offering valuable perspectives from multiple points in the lighting distribution ecosystem.

Part 1: Electrical and Lighting Distributors (Questions 2-11)

Sales Performance: Q1 2026 vs. Q1 2025

Distributor sales performance in Q1 2026 showed a mixed picture with a tendency toward flat or modest growth:

Performance Category	Percentage
Down 10-20%	11.11%
Down 5-9%	22.22%
Flat (±2%)	33.33%
Up 2.1-4%	22.22%
Up 21%+	11.11%
Total Respondents	100%

Table: Distributor year-over-year sales performance, Q1 2026 vs. Q1 2025

Notably, one-third of distributors reported flat performance, while 33.33% experienced declines. Only 33.33% reported growth, suggesting market consolidation and competitive pressures. The outlier showing 21%+ growth indicates that well-positioned distributors can still achieve significant gains in selective market conditions.

Market Segment Performance

Distributors rated their performance across seven distinct market segments, revealing clear differentiation in activity levels:

Market Segment	Down	Quiet	Slow	Okay	Busy/Robust
Large New Construction	11.11%	11.11%	55.56%	22.22%	0%
Mid-sized New Construction	0%	33.33%	55.56%	11.11%	0%
Small New Construction	0%	22.22%	77.78%	0%	0%
Large Renovation Projects	0%	66.67%	11.11%	11.11%	11.11%
Medium Renovation Projects	0%	33.33%	44.44%	11.11%	11.11%
Small Renovation Projects	0%	22.22%	55.56%	22.22%	0%

Table: Distributor assessment of market segment activity levels

Key Observations:

Small new construction projects dominated activity, with 77.78% rating this segment as “Slow” indicating consistent but unspectacular demand
Large renovation projects were the quietest segment, with 66.67% describing activity as “Quiet”
No segment achieved “Robust” ratings from many respondents, indicating subdued market conditions
Medium-sized renovation projects showed the most promising, with 22.22% reporting “Busy” or “Robust” conditions

Supplier Concentration and Line Card Changes

Major lighting conglomerates (Acuity, Cooper Lighting Solutions, Current Lighting, and Genlyte Solutions) continue to dominate distributor line cards:

33.33% of distributors reported these manufacturers representing 76%+ of their lighting sales
44.44% reported 31-40% concentration with major conglomerates
Combined, 77.78% of distributors have significant exposure to the four major manufacturers

When asked about line card changes, distributor strategies varied:

44.44% increased business with conglomerates (Acuity, Cooper, Genlyte, Current)
22.22% shifted more business to mid-tier manufacturers, (Standard, Satco, Eiko, Ledvance, CSC)
33.33% made no lighting supplier changes
11.11% increased business with other suppliers

This data suggests a bifurcated strategy: larger distributors consolidating with major manufacturers for efficiency and rebate optimization, while others seek differentiation through mid-tier and specialty manufacturers.

Inventory Management

Inventory discipline remained a priority for distributors in Q1 2026:

88.89% maintained the same inventory levels as the prior quarter
11.11% reduced inventory levels
0% increased inventory—a striking indicator of cautious demand expectations

The complete absence of inventory expansion signals conservative planning and careful working capital management, reflecting uncertainty about demand acceleration in coming quarters.

Through-Stock vs. Project Business Performance

A critical divergence emerged between counter/through-stock business and project business:

Through-Stock Business (Counter and Small Project Sales):

44.44% reported decline
33.33% remained the same
22.22% improved

Project Business:

55.56% reported improvement
33.33% remained the same
11.11% declined

This divergence suggests that while larger projects are moving forward, day-to-day contractor and maintenance activity has softened—potentially indicating that smaller contractors are experiencing reduced activity while larger projects secured during prior planning cycles continue to progress.

Project Tracking and Backlog

Project execution showed reasonable stability with some delays:

44.44% reported projects 95%+ on track to deliver as expected
44.44% experienced delays due to other products required for job completion
11.11% noted projects being delayed or canceled due to broader concerns
0% reported significant project cancellations

Distributor backlogs showed mixed directional movement:

44.44% reported backlog increasing
22.22% reported flat backlog
33.33% reported declining backlog

The even split between increasing and decreasing backlogs reinforces the theme of market polarization, where some distributors are capturing business while others face headwinds.

Distributor Outlook: Q2 2026 vs. Q2 2025

Looking ahead to Q2 2026, distributors expressed modest optimism mixed with continued caution:

Expected Performance	Percentage
Down 21%+	11.11%
Down 16-20%	11.11%
Flat (±2%)	22.22%
Up 2.1-4%	33.33%
Up 5-9%	11.11%
Up 10-15%	11.11%
Total	100%

Table: Distributor sales expectations for Q2 2026 vs. Q2 2025

55.55% expect positive growth in Q2 2026
22.22% expect flat performance
22.22% expect decline

While more distributors anticipate growth than decline, the concentration in the modest “Up 2.1-4%” category suggests expectations remain tempered.

Part 2: Lighting Manufacturers (Questions 12-16)

Conglomerate Representation

Among manufacturer respondents, representation from the four major lighting conglomerates (Acuity, Cooper Lighting Solutions, Genlyte Solutions, Current Lighting) was limited:

14.29% represented one of the four major conglomerates
85.71% represented other manufacturers

This distribution indicates the survey captured primarily mid-tier and specialty manufacturers, providing valuable insight into the competitive dynamics beyond the major players.

Manufacturer Sales Performance: Q1 2026 vs. Q1 2025

Manufacturers reported stronger performance than distributors, with a clear majority achieving growth:

Performance Category	Percentage	Responses
Down 21%+	6.67%	1
Down 16-20%	6.67%	1
Down 5-9%	13.33%	2
Flat (±2%)	20.00%	3
Up 2.1-4%	40.00%	6
Up 5-9%	13.33%	2
Total Respondents	100%	15

Table: Manufacturer year-over-year sales performance, Q1 2026 vs. Q1 2025

53.33% of manufacturers achieved positive growth
20.00% remained flat
26.67% experienced decline

The fact that 40% of manufacturers achieved 2.1-4% growth suggests manufacturers are successfully navigating market conditions through product innovation, specification wins, and market share gains.

Manufacturer Backlog Trends

Manufacturer backlogs showed balanced movement with slight positive bias:

40.00% reported increased backlog
40.00% reported backlog remained the same
20.00% reported decreased backlog

The equal split between increasing and stable backlogs (80% combined) provides a foundation for optimistic forward guidance, suggesting manufacturers have reasonable visibility into Q2 and Q3 production requirements.

Market Sentiment from Specifiers and Design Professionals

Manufacturers reported concerning feedback from lighting designers, specifiers, design-build contractors, and ESCOs regarding future project activity:

Specifier Sentiment	Percentage
Very busy	6.67%
Steady	26.67%
Slowing down	20.00%
Concerned about next 6 months	46.67%
Total	100%

Table: Specifier and design professional sentiment on future project activity

The fact that 46.67% of manufacturers reported their specifier contacts are “concerned about the next 6 months” represents a significant warning indicator. Combined with the 20% reporting activity is “slowing down,” two-thirds of manufacturer contacts are expressing caution or concern about the forward pipeline.

This stands in notable contrast to the manufacturers’ own current performance, suggesting that while existing backlogs and current quarter activity remain solid, future specification activity may be softening.

Manufacturer Outlook: Q2 2026 vs. Q2 2025

Despite concerns from the design community, manufacturers maintained relatively optimistic outlooks for Q2 2026:

Expected Performance	Percentage
Down 2.1-4%	6.67%
Flat (±2%)	33.33%
Up 2.1-4%	26.67%
Up 5-9%	26.67%
Up 10-15%	6.67%
Total	100%

Table: Manufacturer sales expectations for Q2 2026 vs. Q2 2025

60.00% expect positive growth in Q2 2026
33.33% expect flat performance
6.67% expect modest decline

Manufacturers demonstrated more optimism than distributors, with 60% expecting growth compared to 55.55% of distributors. The concentration in the “Up 2.1-4%” and “Up 5-9%” categories suggests manufacturers anticipate continued momentum from Q1 performance.

Part 3: Electrical Representatives and Agents (Questions 17-24)

Representative Types

The representative segment included diverse business models:

Representative Type	Percentage
Lighting Agent	27.27%
CEMRA Supply Rep	36.36%
Employed Directly by Manufacturer	36.36%
Total	100%

Table: Representative and agent business model distribution

This balance between independent lighting agents, broader CEMRA supply representatives, and direct manufacturer employees provides a comprehensive view of the field sales environment.

Representative Sales Performance: Q1 2026 vs. Q1 2025

Representatives and agents reported the most challenging conditions among the three segments:

Performance Category	Percentage
Down 10-15%	27.27%
Down 5-9%	9.09%
Down 2.1-4%	18.18%
Flat (±2%)	9.09%
Up 2.1-4%	9.09%
Up 5-9%	27.27%
Total Respondents	100%

Table: Representative year-over-year sales performance, Q1 2026 vs. Q1 2025

36.36% achieved positive growth
9.09% remained flat
54.55% experienced decline

The fact that a majority of representatives experienced declining sales suggests market share shifts, specification challenges, or contractor relationship pressures. The polarization is notable—those achieving growth averaged 5-9%, while those experiencing decline averaged 10-15%, indicating significant performance divergence.

Representative Market Sentiment

Representatives reported more balanced feedback from specifiers and design professionals compared to manufacturers:

Specifier Sentiment	Percentage
Very busy	18.18%
Steady	36.36%
Slowing down	27.27%
Concerned about next 6 months	18.18%
Total	100%

Table: Specifier sentiment reported by representatives

Notably, representatives reported less concerning feedback than manufacturers:

Only 18.18% of representatives heard concerns about the next 6 months (vs. 46.67% from manufacturers)
36.36% reported “Steady” activity
18.18% reported “Very busy” conditions

This discrepancy could reflect different manufacturer lines being represented, geographic variation, or different interpretations of specifier feedback.

Representative Outlook: Q2 2026 vs. Q2 2025

Despite challenging Q1 performance, representatives maintained cautious expectations for Q2 2026:

Expected Performance	Percentage
Down 5-9%	27.27%
Down 2.1-4%	9.09%
Flat (±2%)	36.36%
Up 5-9%	18.18%
Up 10-15%	9.09%
Total	100%

Table: Representative sales expectations for Q2 2026 vs. Q2 2025

27.27% expect positive growth in Q2 2026
36.36% expect flat performance
36.36% expect continued decline

Representatives demonstrated the most conservative outlook among the three segments, with the largest percentage expecting flat performance and an equal share expecting decline as growth.

Industry-Wide Insights: Pricing and Technology Adoption

Pricing Dynamics (Q1 2026)

The survey captured pricing movement across all respondent segments (Question 21, n=30):

Pricing Change	Percentage
Down 6%+	3.33%
Down 3-5%	16.67%
Down 1-2%	16.67%
Flat (0%)	26.67%
Up 1-2%	13.33%
Up 3-5%	16.67%
Up 6-8%	6.67%
Total	100%

Table: Average lighting pricing changes in Q1 2026

Key Pricing Observations:

26.67% reported flat pricing—the single largest category
36.67% reported price decreases (ranging from 1% to 6%+)
36.67% reported price increases (ranging from 1% to 8%)

The balanced distribution between increases and decreases, with flat pricing as the plurality response, suggests a lighting market in pricing equilibrium after years of commodity-driven volatility. Aggressive pricing to win specifications appears balanced by selective price increases where manufacturers and distributors maintain differentiation.

Artificial Intelligence Adoption

The survey included comprehensive questions about AI usage across the industry (Question 23), revealing significant technology adoption:

AI Application	Percentage
Research (ChatGPT, Claude, Gemini, CoPilot, Perplexity)	87.50%
Writing Emails	62.50%
Analyses	50.00%
Pricing	29.17%
Built into CRM	29.17%
Inventory Management	16.67%
Order Quotation	16.67%
Sales Order Entry	12.50%
HR	8.33%

Table: AI usage across lighting industry companies

AI Adoption Highlights:

87.50% use AI for research via platforms like ChatGPT, Claude, Gemini, CoPilot, and Perplexity
62.50% use AI for writing emails
50.00% use AI for business analyses
29.17% have integrated AI into pricing and CRM systems

Despite widespread adoption, governance remains underdeveloped:

48.28% of companies have written AI governance policies
51.72% lack formal AI governance policies

The rapid adoption of AI tools for research and communication, combined with limited governance frameworks, suggests an industry in the early stages of AI integration. The 29.17% adoption rate for pricing and CRM integration indicates more strategic implementations are emerging beyond simple productivity tools.

Industry Event Participation

LEDucation, a major industry trade event, showed strong anticipated attendance:

65.52% planned to attend LEDucation
34.48% did not plan to attend

The two-thirds attendance rate demonstrates continued value placed on in-person networking, product education, and specification relationship building despite increasing virtual communication tools.

Comparative Analysis Across Segments

Sales Performance Summary

Comparing Q1 2026 vs. Q1 2025 performance across all three segments reveals clear differentiation:

Segment	Growth	Flat	Decline
Distributors	33.33%	33.33%	33.33%
Manufacturers	53.33%	20.00%	26.67%
Representatives	36.36%	9.09%	54.55%

Table: Comparative sales performance by segment, Q1 2026 vs. Q1 2025

Manufacturers demonstrated the strongest performance, with the majority achieving growth and the smallest percentage experiencing flat conditions. Representatives faced the greatest challenges, with over half reporting declines. Distributors showed the most balanced split, with equal thirds across growth, flat, and decline categories.

Forward Outlook Summary

Comparing Q2 2026 expectations across segments:

Segment	Expect Growth	Expect Flat	Expect Decline
Distributors	55.55%	22.22%	22.22%
Manufacturers	60.00%	33.33%	6.67%
Representatives	27.27%	36.36%	36.36%

Table: Q2 2026 sales expectations by segment

Manufacturers remain the most optimistic, with 60% expecting growth and only 6.67% anticipating decline. Distributors show moderate optimism. Representatives demonstrate the most conservative outlook, with expectations for decline and flat performance outweighing growth expectations.

Conclusions and Market Implications

The Q1 2026 Pulse of Lighting Market Survey reveals a lighting industry navigating mixed signals with cautious optimism:

Key Takeaways

Polarized Performance: Success is not evenly distributed. Some companies are achieving strong growth while others face significant headwinds, suggesting market share shifts and the increasing importance of strategic positioning.
Project Business Outperforming Counter Sales: The 55.56% improvement in distributor project business versus 44.44% decline in through-stock sales indicates larger projects are moving forward while day-to-day contractor activity has softened.
Manufacturers Leading Growth: With 53.33% of manufacturers achieving growth versus 33.33% of distributors and 36.36% of representatives, manufacturers are capturing value through specification wins and product innovation.
Specifier Concern Creates Future Uncertainty: The 46.67% of manufacturers reporting that specifiers are “concerned about the next 6 months” represents a potential leading indicator of softening demand in Q3-Q4 2026.
Inventory Discipline Reflects Caution: Zero distributors increased lighting inventory levels, with 88.89% holding steady and 11.11% reducing inventory—clear evidence of conservative demand planning.
Major Manufacturers Maintain Dominance: The four major conglomerates (Acuity, Cooper, Genlyte, Current) represent 76%+ of sales for one-third of distributors, with 44.44% of distributors increasing business with these suppliers.
Pricing Stability Returns: After years of volatility, 26.67% reported flat pricing with balanced distributions between increases and decreases, suggesting market equilibrium.
AI Adoption Accelerating Without Governance: 87.50% of companies use AI for research, and 62.50% for email writing, yet 51.72% lack formal AI governance policies.
Representative Challenges: With 54.55% experiencing sales declines, representatives face the most challenging environment among the three segments, suggesting potential territory consolidation and line card rationalization.
Modest Growth Expectations: While more respondents expect growth than decline in Q2 2026, expectations cluster in the modest 2-5% range rather than robust double-digit growth.

Strategic Implications

For manufacturers, the current environment rewards specification support, product innovation, and channel relationship investment. The strong manufacturer performance relative to distributors and representatives suggests successful manufacturers are winning share through design community engagement and differentiated product offerings.

For distributors, the data suggests focusing on project business development while addressing through-stock decline. The complete absence of inventory expansion indicates an industry waiting for clearer demand signals before committing working capital.

For representatives, the challenging Q1 performance and conservative Q2 outlook suggest the need for intensified specifier engagement, market segmentation, and potential line card optimization to compete in a market showing signs of consolidation.

The lighting industry enters Q2 2026 with solid current performance but emerging questions about future momentum. The divergence between current backlog strength and specifier concerns about the next six months will be a critical dynamic to monitor in upcoming quarters.

Methodology Note

This report is based on the Q1 2026 Pulse of Lighting Market Survey conducted in March 2026. The survey captured responses from lighting industry professionals across Canada, including electrical and lighting distributors lighting manufacturers and electrical representatives and agents. Response rates varied by question, with some questions directed to specific segments. Percentages are calculated based on actual respondents to each question. The survey provides directional market intelligence and sentiment indicators rather than statistically projectable market sizing.