February 1, 2024
Signify to Close Texas Production Facility
Photo credit: Charles Bryan
Signify realigns North American operations, shifting product lines to other manufacturing sites
Signify has announced its plan to gradually shift production of its Genlyte Solutions portfolio from the company's San Marcos, Texas, facility to its locations in Camargo, Mexico, and Littlestown, Pennsylvania. This transition, set to occur over the course of 2024, is part of Signify's broader initiative to harness synergies and enhance operational efficiency across its manufacturing spectrum.
The San Marcos facility, situated midway between Austin and San Antonio, occupies an industrial space on 24 acres. Signify plans to completely exit the manufacturing site in San Marcos.
The San Marcos facility has been a cornerstone of Signify's (formerly Philips Lighting) legacy. This site, often referred to as the "outdoor facility," has housed design teams, a testing laboratory, manufacturing operations and product demonstration spaces. Brands such as Hadco, Gardco, Lumec, Stonco, and previously Wide Lite and Lightolier Controls, have some or all of their roots in San Marcos, underscoring the facility's significant contribution to Signify's portfolio.
Signify's plan to shift production to Mexico aligns with broader trends observed among US industrial companies including other electrical and lighting industry manufacturers. The decision to relocate some manufacturing to Signify's Littlestown facility could suggest a strategy to transfer lower volume or specialty product lines to that location.
The Littlestown facility, nestled near the Maryland border in Pennsylvania, is known for its production of 3D printed luminaires, encompassing decorative pendants, high and low bays, and tracks under Genlyte Solutions’ Lightolier brand and Cooper Lighting Solutions PrentaLux brand.
Strategic imperatives
This operational realignment is seemingly aligned with Signify's commitment to maintaining non-manufacturing costs between 25-29% of sales, a strategic objective aimed at optimizing organizational efficiency. Recent reports indicated that these costs stood at 31% in FY 2023, which may be prompting this strategic adjustment.
A Signify spokesperson shared:
"This was a difficult but necessary decision with the ongoing transformation in the lighting industry. Signify is focused on supporting impacted employees, providing resources and training to assist them through this transition."
"As the global leader in lighting, we remain committed to the market and will continue to drive innovation and leverage the breadth of our operations to best serve our professional customers."
Below is a 2-minute social media video posted by Greater San Marcos Partnership in 2020 that provides glimpses into Signify's San Marcos facility:
As of press time, Texas state records do not cite any recent layoff notices being filed by Signify or its subsidiaries including Genlyte Thomas Group LLC.
Signify's strategic realignment in North America is a calculated move to enhance operational efficiency and adapt to market demands. While the San Marcos facility's legacy will be honored, the shift towards lower cost manufacturing in Camargo represents Signify's strategic direction.
NOTE: A previous version of this article incorrectly stated that the San Marcos facility was 1 million square feet. This was an error; the correct measurement for the land/lot size is approximately 1 million square feet, or 24 acres. We regret the mistake.
