Threat to profitability

With the volume of recycled lighting products set to increase significantly over the next two years, lighting manufacturers could find they are faced with unexpected costs that pose a real threat to their profitability, compliance scheme Lumicom has said.

Lumicom CEO Peter Hunt said: “The way that recycling arrangements are funded is going to become increasingly important to lighting producers. In particular, those companies that have chosen a ‘pay-as-you-go’ compliance scheme are especially vulnerable - as recycling levels rise, so too will their costs.”

Through its integration with the Lighting Industry Association, Lumicom claims to have clear visibility of trends in the recycling of lighting products. It notes the 68% increase in its own recycling volumes in 2013 (compared to 2012) and the growing desire by end users to improve their own recycling figures.

Recycling targets are said to be increased by 45% per capita by 2016, rising to 65% by 2019, and Lumicom anticipates more rigorous enforcement by the Environment Agency.

“Lumicom members make an upfront payment, which remains the same irrespective of recycling volumes, so they clearly need have no concerns,” Hunt continued. “Their costs are wholly predictable and there are no unpleasant surprises in store. In fact, we believe this is one of the key factors behind our recent 15% increase in membership and the fact that Lumicom handles 54% of the lighting products that are recycled by the 36 compliance schemes in the UK. The fact that we specialise in lighting products and have an unparalleled understanding of the market is clearly another factor,” he added.