The gradual decrease in the cost of LED lighting has helped boost business so much for PMC Eco Supply LLC that the company doubled its sales and revenues in 2015. The firm also outgrew the office space it had occupied since it was founded five years ago.
The company moved in February from Brighton to South Washington Street in East Rochester.
“We are definitely in a growth mode,” said President Patrick Coyne, noting he recently hired an additional salesperson and hopes to hire one more.
The company has five employees.
The majority of the customer base for the veteran-owned business is in the Rochester, Buffalo, Ithaca and Syracuse areas. Its focus is on small to midsize businesses, including local owners of national franchises.
“Utilities are one of the top five costs for most business owners, with lighting being a large part of that,” Coyne said. “I saw a way to help their bottom line. LED lighting is 10 times better than the fluorescent most businesses use. By switching their lighting to LED most customers see a 75 percent reduction in lighting use and a 25 percent reduction in overall electric costs.”
Experts point to the benefit of LED, which stands for light-emitting diode, over compact fluorescent light—LED uses less energy and lasts longer. Both LED and CFL have been shown to be much more efficient than traditional incandescent lighting.
Design Recycle Inc., a California company, analyzed use and cost of all three. It found a 60-watt incandescent light bulb draws more than $300 worth of electricity a year and provides some 800 lumens of light. An equivalent compact fluorescent uses less than 15 watts and costs $75 of electricity per year. LED bulbs draw less than eight watts of power, costing roughly $30 a year.
LED bulbs cost more than CFL bulbs and incandescent bulbs. According to estimates from the consumer site GreenLivingIdeas.com, incandescent bulbs cost 94 cents, CFL bulbs $1.60 and LED $4.99.
While there is a larger cost upfront, the LED lights last significantly longer, Coyne said.
“The life expectancy of LED is 50,000 hours, which is about eight to 10 years in a typical retail space. Fluorescent is about 4,000 hours,” Coyne says.
For the majority of commercial projects, PMC retrofits LED lighting into existing fixtures.
A benefit to customers is grant money PMC helps secure through New York State Energy Research and Development Authority.
“Nearly all projects are eligible for a grant and in many cases up to 50 percent of the project cost is covered by it,” Coyne said.
Grant funding paid for nearly 50 percent of the switch to LED for one of Coyne’s early projects. The company replaced 250 fluorescent lights with LED at Vesa’s Automotive Service on University Avenue.
“The project cost was $12,500 but the grant we had covered half of it,” said Joshua Consler, co-owner and vice president. “The whole project paid for itself in six months. And we have cut our electric bill in half.”
He also noticed a better working environment with the switch to LED.
“LED light is instant. Fluorescent takes a few seconds to warm up,” he said. “The quality of the light was brighter from the start and it hasn’t diminished over the last two years the way fluorescent did.”
Another advantage of LED lighting over CFL for Consler is it is more environmentally friendly.
CFL lights contain mercury, which is potentially hazardous.
“There aren’t the regulations on the disposal of the LED as there are with fluorescent, so there are fewer hassles on the other end,” Consler said.
Chris Goyette, general manager of Homewood Suites Rochester in Victor, Ontario County, worked with PMC to switch to LED lighting in several places at the hotel.
“We have bulbs in use 24 hours a day in the common space,” Goyette said. “That’s quite a bit of space and it took over 400 fixtures.”
In addition, guest rooms were switched to LED, which has improved the experience for guests, he says.
“LED made us aware of some painting issues in some rooms,” Goyette said. “Our staff cleans better since they have better lighting and our guests don’t have eye strain when they read.”
The cost savings have been an important improvement.
“I keep a spreadsheet and it shows we had a 7 percent increase in occupancy for 2015 and yet a decrease in electric costs,” he said.
There are plans to install LED lighting in more of the guest rooms in 2016. Goyette said he has become such a fan of the LED lights that he shared his experience with other business owners.
“People can be skeptical, so I called my colleagues. I was able to get three hotels to switch in the Rochester area. Holiday Inn Express next door, Best Western in Victor and Radisson Airport,” he said.
PMC has several projects scheduled for 2016 and expects the incentive program to continue.
“The percentage of the project covered by a grant varies on the size of the job and type of specific lighting design,” Coyne explained. “But the electric cost savings are worth it and we’re glad we can help businesses make it happen.”
Upstate LED, LLC is now a subsidiary of Pmc Eco supply, LLC