March 13, 2025
Manufacturers Are Raising Prices, With More on the Way
Market pressures force pricing adjustments as material costs and tariffs escalate
For weeks, lighting manufacturers have been rolling out price increases. Some made their move in early February, reacting to tariff hikes on Chinese imports. Others, like Genlyte Solutions and Cooper Lighting, announced this week, adjusting to market pressures as the cost of materials and components continues to rise. Across the industry, the pattern is clear: companies are bracing for higher costs, and distributors and contractors are scrambling to adjust.
Any company still resisting price hikes is on borrowed time. If April 2 tariffs take hold, that time runs out.
If tariffs on Mexico and Canada take effect and remain in place, the ripple effect will be immediate. Any manufacturer still holding out will have to decide — absorb the hit or pass it along. And given the scale of the potential increases, there’s little doubt which option most will choose.
The Rolling Wave of Price Increases
Lighting manufacturers aren’t moving in unison, but the end result is the same. Some companies, particularly those with deep exposure to China, moved quickly after tariffs were announced in early February. Others waited until March, reacting to the short-lived implementation of Mexico and Canada tariffs before they were temporarily pulled back.
Still, others were forced to act this week as 25% increased steel and aluminum tariffs took effect, pushing material costs higher. Cooper Lighting announced a 5% increase on select brands, though high-volume MarketPro stock products will see little impact. Genlyte Solutions followed with a steeper adjustment, raising prices on professional LED lamps, electronics, luminaires — including poles and brackets — and controls products by an average of 5-8%.
Now, with April 2 looming, another wave may be inevitable. The pressure is mounting on those with significant manufacturing operations in Mexico and Canada. Even companies with domestic production aren’t immune — many of their suppliers source internationally, meaning increased costs will eventually work their way through the supply chain.
Meanwhile, Canadian manufacturers that ship heavily into the U.S. are holding out hope that the tariffs don’t materialize at all. For them, the difference between staying competitive and facing a serious disadvantage rests on what happens in Washington.
Acuity Brands: The Steady Hand, For Now
One company that has yet to announce a price increase is Acuity Brands. No earth-shattering news there. Acuity has long projected a steady hand, signaling that it has been preparing for tariff volatility and maintaining control over its supply chain. Rather than chasing competitors’ moves, the North American leader typically charts its own course. But with 53% of its 2024 revenue tied to its seven factories in Mexico, if the April 2 tariffs on Mexico hold, price increases seem inevitable.
The timing also adds another layer of complexity. Acuity is set to report earnings on April 3, just one day after President Trump’s next tariff decision. If tariffs take effect, the company will have to weigh when and how to adjust. Announcing a price increase before an earnings call could raise questions from investors, while delaying too long could mean absorbing rising costs with no immediate recourse. Either way, the market will be watching closely.
What Happens If April 2 Sticks?
If the tariffs go into effect and stay in place, it won’t be a question of whether more price increases are coming — it will be about how much and how fast. Nearly every manufacturer will be forced to adjust, regardless of where they produce their products. Distributors and contractors will feel the squeeze, caught between suppliers passing along higher costs and customers reluctant to accept steeper prices.
Some manufacturers may wait a few days or even weeks to make their moves, but waiting only buys time — it doesn’t change the outcome. If tariffs stick, price increases are a certainty.
The Bottom Line
The past six weeks have been a preview of what’s to come. Companies that hadn’t raised prices in February are doing so now. Acuity has yet to make a move, but with its exposure to Mexico, the longer-term math seems hard to ignore.
And if the April 2 tariffs hold, those still on the sidelines won’t stay there for long. This isn’t about if — it’s about when and how much.
