September 16, 2026
Electrical Manufacturers See Stronger Business Conditions
Survey respondents cite stronger activity despite inflation and policy uncertainty
Each month, the National Electrical Manufacturers Association (NEMA) publishes the Electroindustry Business Confidence Index (EBCI), a monthly survey designed to gauge business sentiment among North American electrical equipment manufacturers, including many lighting companies. Think of it as a quick pulse check: are manufacturers feeling better or worse about conditions than they did last month, and what do they expect six months from now?
August brought a further improvement in current conditions. The Current Conditions component rose to 65.8, up from 63.0 in July, extending a run of expansionary readings. Forty-two percent of respondents described conditions as better, while just 11 percent reported worse conditions. Comments pointed to stronger orders, shipments, and quote activity, with grid modernization and data center investment cited as supporting factors, even as trade policy uncertainty, inflation, and project delays remained on respondents' minds.
Future sentiment eased somewhat but stayed firmly positive. The Future Conditions component came in at 68.4, down from 73.9 in July, as more respondents expected conditions to hold steady rather than improve. Comments described expectations for steady demand and customer expansion, tempered by political and monetary policy uncertainty, international tensions, and, notably, some resistance to data center construction.
Unspoken Data Center Caveat
One nuance worth noting: the NEMA report makes no mention of lighting specifically, and its membership spans the broader electroindustry, including switchgear and power distribution. Several August comments pointed to data center investment as a driver of stronger orders, alongside a note of resistance to data center construction in some markets. It's reasonable to ask how directly that demand translates to lighting orders, since data centers are not historically a major source of high-margin architectural or commercial lighting projects. Lighting-specific readers should interpret the six-month outlook with that distinction in mind.
Methodology: The EBCI is based on monthly surveys of senior managers at NEMA member companies, designed to gauge the business environment of the electroindustry across North America. Readings above 50 indicate expansionary conditions for the sector.
Source: National Electrical Manufacturers Association (NEMA) Electroindustry Business Confidence Index (EBCI) survey. Used with permission.
