This urgent communication is intended to make you aware of the global raw material crises which is affecting the entire lamp industry…


Rare Earth Oxides (REO) are a critical raw material in the manufacture of fluorescent based lighting systems.  China currently produces 95% of the world’s total output of REO.  In October, China announced plans to cut production and reduce REO exports.  This has caused the immediate threat of a major global shortage with significant impact to products that are dependent on these raw materials.

As a result of this shortage, lamp manufacturing costs have skyrocketed upwards of 300% and all major lamp manufacturers, including Philips, have been forced to issue significant price increases on affected lamps.  Rumsey has been informed of impending prices increases averaging 25%, primarily on T5, T8, T12, CFL pin and self-ballasted lamps.   LEDs will soon be affected as REOs are used in their production as well.

Industry experts are predicting the REO shortages to continue through at least 2014 until new supplies come on line.  As a result, the industry is bracing for additional price increases while the supply shortage remains.

How does this impact Rumsey lamp customers?

  • Philips and Rumsey are closely monitoring the phosphor situation and are strategically managing lamp purchases in an effort to minimize the overall impact, however, customers should expect extended lead times and possible shortages
  • Because of the volatility of this situation customers need to read terms and conditions on all lighting quotations

Rumsey representatives are available to discuss this in more detail and to help you develop strategies to deal with this volatile situation.  Leveraging alternatives such as longer life lamps or the application of lighting which is less affected by this shortage are two specific steps you can take.  Please rest assured that Rumsey is continually being updated on the world-wide REO situation and its impact on price and availability as well as working to manage our own inventory and costs as best we can. 

This is an unprecedented global crisis in the lighting industry and Rumsey along with Philips is committed to support you in every way we can during this difficult market.

Still have questions? Below please find additional informational resources: