June 21, 2023
Signify to Partner with New Agent in Philadelphia
After a 12+ year run with Penn Lighting, the two companies are going their separate ways
Signify is making a move in the Philadelphia metropolitan market.
Signify will transition away from Penn Lighting Associates towards new sales representation in the Greater Philadelphia, South Jersey and Delaware markets for its Genlyte Solutions portfolio of luminaire brands, Interact connected brand, Philips Dynalite brand and Color Kinetics. Penn Lighting will represent these Signify brands until August 20, 2023.
In a customer notice obtained by inside.lighting, Penn Lighting described the move as "a mutual decision to part ways." The agency struck a positive tone in communicating confidence in executing a smooth transition and reinforced its dedication to serving customers throughout the market. Penn Lighting has been the Signify agent since late 2010 when the agency broke off a decades-long partnership with Cooper Lighting.
Neither Signify nor Penn Lighting has communicated any major milestone next steps at this time. However, we expect Signify to announce its new agency partnership within the next four to six weeks. Like many large market and brand transitions, this change will likely set off a chain reaction of other movements. However, we anticipate minor fallout and do not predict that local agents and various manufacturers will change their dance partners as if it were a Saturday night on Delaware Ave.
Will Penn Lighting pair up with another major lighting brand?
This could happen, but it seems unlikely. Acuity Brands and Current™ are firmly entrenched with their respective partners, Illuminations Inc. and Diversified. Those partnerships also span three traditional markets: Metro Philadelphia, Northern New Jersey, and Metro New York City.
Signify's sister brand, Cooper Lighting Solutions, teamed up with Lighting Solutions after their partnership with Penn Lighting ended over a decade ago. It seems improbable that those two would reunite, given their past experience and the influence of Signify. Similarly, Penn Lighting parted ways with local controls juggernaut Lutron years ago, and Lutron appears secure with its partner, Synergy Electrical Sales.
So, we predict Penn Lighting will remain a more independent agent, maintaining its relationships with significant brands like Focal Point, Wattstopper, Visa Lighting, Vode and others.
Second split, different circumstances
Interestingly, Keith Eagle, Vice President and General Manager of the U.S. Professional Channel at Signify, held the role of Area Vice President at Cooper Lighting when Penn Lighting resigned the line in 2010. Eagle, now in a corporate executive role at Signify, likely endorsed this recent change. We interpret this as a coincidence and irony, with no grudges among the parties.
Related: Philadelphia Lighting Market »
Where will Signify go?
We believe that Signify instigated this market change, and for this reason, we think they have a plan they're not ready to publicize yet. They have 60 days to finalize their new partnership, to bring brands like Lightolier, Color Kinetics, and others across the territory from Egg Harbor to the Main Line, from A-town to the 'Burg. Here are our predictions:
New York and Northern New Jersey will be part of the calculus: With the territory's two largest agents, Diversified and Illuminations, maintaining a footprint in Northern New Jersey and New York Metro, we anticipate the next agent for Signify will also have a presence in these markets. Lighting project influences, distributor acquisitions, and manufacturer partnerships are regularly spanning these once-separate territories.
Synergy Electrical Sales: (DraftKings 3:1)
Anchored with the Lutron line and other electrical lines, Synergy could be a good landing spot for Signify in the local market. Synergy currently hosts other lighting lines throughout the territory, including Signify's Philips lamps and Advance drivers. They are a known entity to Signify, making consolidation under one roof the leading option in our opinion.
Synergy also has a presence in Northern New Jersey and New York City, having allied with longtime New York agent, Pyramid Lighting, over two years ago. If Lutron were ever to part ways with its current agent in New York Metro, Synergy would likely be a strong contender for that line.
SLS: (DraftKings 7:1)
Specified Lighting Sales (SLS) has been a significant New York City agent for a long time and has represented some prominent specification brands there, such as Focal Point, Finelite, Crestron and Amerlux. However, SLS does not have a presence in Philadelphia, but it has expanded into Northern New Jersey in recent years.
Notably, as reported by the inside.lighting I-Team in 2021, SLS partnered with Signify in New York and New Jersey to represent the Genlyte Solutions package there. (Color Kinetics was not part of that deal.)
So, SLS moving into Philadelphia would be a gangster move, but would also require a total territory start-up. While Philly is the business epicenter, effective coverage of the market requires staff that can easily get to South Jersey, Delaware, Allentown, Scranton, Harrisburg and York.
An SLS Philly start-up would demand patience and investment, but it could be a long-term strategy for Signify in the Northeast corridor. An enabling factor is that SLS principal owner, Randy Kirsch, resides in either Bucks County or Montgomery County, Pennsylvania. At 67 years old, Kirsch may be open to tackling a new and exciting market challenge, or he may not.
Digital Filaments (DraftKings 20:1)
Digital Filaments, an independent lighting agent, has a competent group of lighting people who represent reliable specification lines and solid general lighting lines. The impression we get from this agency is that they are most interested in valued two-way partnerships with their manufacturers. They don't seem to be chasing conglomerate lines, but would likely entertain the conversation if approached.
Rest of the field (DraftKings 25:1)
We've learned never to be surprised when significant lines are in play. There could be a surprising move from Pollart Sales, Luminosity or Brazill Brothers. Will ELA, which recently reentered the Northern New Jersey market, continue its journey down the Turnpike into Metro Philly? Or will someone else catch us and other lighting professionals off guard?
Stay tuned to inside.lighting for more excruciating marketplace breakdowns like this. We'll keep you updated on further developments.
Related: Philadelphia Lighting Market »
