LED Warehouse Lighting Retrofits: Path to Energy Efficiency and Cost Savings

Posted on August 2, 2016 by

LED warehouse lighting retrofits

Warehouses are no longer just for storage. In today’s cost-conscious, efficiency-driven environment, manufacturers are reevaluating the definition of warehousing, As a result, LED warehouse lighting retrofits are increasingly becoming a path to better energy efficiency.

As a result of this sea change, manufacturers are seeking ways to more effectively manage costs, improve inventory control and streamline the supply chain. In the world of supply chain economics, costs associated with operating a warehouse are critical to a company’s bottom line.

For that reason, many companies across the globe are retrofitting their warehouses with LED high bays, swapping out fluorescent tubes and incandescent lighting for a more efficient LED alternative.

LED warehouse lighting retrofits are helping commercial and industrial users to realize a dramatic savings in energy and maintenance costs simultaneously boosting productivity, leading to an onslaught of fluorescent and LED high bay warehouse lighting suppliers, fixtures and retrofit kits.

Industry experts say lighting represents up to 37 percent of a typical warehouse’s monthly electricity consumption expense. A properly designed and executed LED lighting retrofit can reduce energy usage by up to 60 percent – making a significant difference in a company’s bottom line.

High bay LED lighting systems, common in warehouses, last up to three times longer than metal halide or T8 fluorescent lighting systems and up to 60 times longer than incandescent lighting sources.

Studies have shown that improving the lighting environment can result in an improvement in worker productivity by up to 25 percent. With labor costs being a company’s top expense, increased productivity again translates into a stronger bottom line.
Many companies are able to recoup their industrial lighting retrofit investment in a few short years and realize increased savings, lower maintenance costs and higher productivity over the long term.

Case Studies

  • AAA Auto Parts, Minnesota – AAA Auto Parts in Minnesota’s Twin Cities has high-level rack warehouses with more than 45,000 square feet of auto parts storage space. They called in a lighting specialist to analyze an LED solution for their operation.

They made the switch from linear fluorescents to 18W LED T8 lamps and realized a 57 percent reduction in energy use, doubled their foot candles and saw a return on investment in less than three years.

  • Astro Shapes, Ohio – Struthers, Ohio-based Astro Shapes provides aluminum windows, railings and light fixtures for architectural-grade applications and decided to cut back on energy costs.

Astro Shapes went to a system of 600 LED high bay lighting fixtures to light its 300,000 square foot facility, which operates 24 hours per day.

wholesale, logistic, people and export concept - manual worker on forklift loader and businessmen with clipboard at warehouse

Lamp failures with the legacy metal halides and tall ceilings made maintenance a challenge. The new high bay LED system is now providing monthly energy savings of $10,000 as well as lower lighting maintenance costs. Astro Shapes achieved a payback on investment in less than two years.

  • Goodwill of the Great Plains, Iowa – Goodwill of the Great Plains in Sioux City, Iowa converted from fluorescent and incandescent lighting to LED, installing 2,200 LED bulbs and 240 new ballasts. Goodwill is seeing savings of between $700 to $1,000 every month and expects a payback on investment in less than three years.

Goodwill is now exploring LED warehouse lighting retrofits at its other locations in Iowa.

“The industry is undergoing a massive transformation towards LEDs. This new technology provides tremendous new opportunities, and our mission is to promote the use of sustainable, energy efficient lighting solutions. We support a quick and smooth uptake of LEDs which will be beneficial for the industry, its customers, the consumers, and also the planet,” said Jan Denneman, president of the Global Lighting Association (GLA).

GLA was formed to share knowledge of global trends and legislative developments in lighting. GLA’s members are the U.S.-based National Electrical Manufacturers Association (NEMA), European Lamp Companies Federation (ELC) and the Japan Electric Lamp Manufacturers Association (JELMA). Associations from China, Taiwan, Brazil, India and Australia are also represented.

LED’s are experiencing a surge in growth owing to the acceptance of new technologies in the mainstream lighting industry, according to a report from Global Market Insights, headquartered in Delaware. Key markets include industrial lighting, outdoor lighting, architectural lighting, commercial lighting and warehouse lighting.

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