By now you have probably heard something about big price increases for fluorescent lamps and most of you have seen some significant price increases already. Brace yourself because there is more to come.
In order to explain, I need to talk about Rare Earth Metals. Most of us are not even aware that such a thing exists, but they are prominent in all our lives in some form. Rare Earth Metals, or Rare Earth Elements, refer to a group of seventeen chemical elements in the periodic table. These Elements play an important role in the manufacturing of everything from electronics to glass, ceramics, metal alloys, magnets and catalysts used in the refinement of petroleum. LCD displays, lasers, UV resistant glass, capacitors, the fuel cells in Hybrid cars are all dependent on these elements.
Not to mention almost everything with a magnet of any sort in it, like the MRI machine that helps diagnose disease or the electric generators in the wind turbines we see going up in rural areas everywhere.
Three of these rare earth elements are also used in lighting. These elements are what make up the phosphors in Fluorescent and LED lighting technologies. It takes 3 colors (red, blue and green) to make any variation of white light. It is the amount of each element in this tri-phosphor mix that creates the different color temperatures in the lights we all buy. This mixture is what makes the difference between warm white, cool white or daylight and all the shades in between.
The United States was a large producer of these rare earth elements for many years, but by the mid 1990’s the U.S. stopped mining these elements due to a number of reasons that ranged from environmental issues to a lack of demand, as we couldn’t compete with the inexpensive labor China was able to utilize. This has come at some serious environmental costs to China over the years. By not adhering to careful regulations these rare earth mines, that produce waste water filled with acids and radioactive materials, have been responsible for the contamination of farmland and waterways. By following environmental guidelines this wastewater can be disposed of properly. As China continues to cut production to get these environmental issues under control prices will continue to rise.
There is hope however as the mines in the mountain pass area of California are reportedly operating and expanding again. That particular area is expected to be able to produce 25% of the world’s demand by 2013. Another company has also recently discovered in Nebraska what they believe to be the world’s largest known Rare Earth Element deposit. The catch is it could take years to get through all the processes and planning required before any mining can start.
We feel a responsibility to keep you informed of these increases and why they are happening. We have seen 40% increases in Fluorescent lighting already, with another 23-25% coming in November. Most manufacturers are even predicting increases upwards of another 50% in 2012, and perhaps more.
Many companies are cautioning that prices are subject to change without notice, and some companies are actually requiring we call in for pricing at the time we wish to order instead of giving us prices in print. If you are considering the idea of buying ahead we would recommend you contact us as soon as possible analyze your future lighting needs and arrange the correct quantity so you’re not forced to make a last-minute purchase that you may regret later.