Lighting Science’s Zachary (Zach) Gibler moved into the CEO position in June 2009 and recently appeared on CNBC, where he explained how rapidly their volume is growing. “Production in the month of April [2010] was equal to our entire production in 2009, and production in just one week in September [2010] was equal to what we did in April [2010]. By January [2011], we hope to have production levels up to April’s level on any given a day”.
spacecoastbusiness.com
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Nov 1.
Birthing a New Era of Enlightenment
What invention epitomizes the dawning of the modern age more than Edison’s famous light bulb? It is the obvious choice, since there is a direct correlation between economic and cultural advancement and the availability of light. We even dubbed our utility companies “Power and Light.” In fact, seeing one of those dramatic satellite photos of “the Earth at night” awakens the realization that civilization “keeps the lights on.”
Of course, immediate access to light is something we take for granted. Yet few realize that this convenience accounts for a lighting industry generating hundreds of billions of dollars per year worldwide. But one of the most amazing discoveries of the digital age, the LED light, which is far more energy efficient and ecologically friendly than conventional lighting sources, only accounts for a small fraction of that market share, 1 to 2%. That however is rapidly changing and Lighting Science Group Corp., headquartered in Satellite Beach, is positioning itself to ride the wave this remarkable new technology is bringing to the world.
Lighting Science moved their operation to the Space Coast four years ago with a full-time staff of only six. They now boast nearly 300 full-time employees and have tripled their production capacity just since spring.
Advancing at the Speed of Light
Unlike some automobiles, which change their outward style annually to give the appearance of innovation, LED technology is evolving as fast as the digital processors that make the world of iPhones and PC’s possible. According to Fred Maxik, the founder and Chief Technology Officer of the company, “LED’s are still in the embryonic stage. What is more, there are significant innovations being made every six months.”
He continues enthusiastically, “You could compare it to how audio reproduction went from magnetic tape to CDs. The sound quality was better and the technology was a fraction of the size and weight. Then CDs were replaced by MP3 players, again, better sound reproduction, more storage, at a fraction of the mass. This is the kind of potential we have with LED lighting.”
Drawing inspiration from the likes of Nikola Tesla, whose brilliant innovations helped make Westinghouse one of the most recognizable brands in the country, Maxik sees in LED lighting a perfect synthesis between the entrepreneurial business endeavor and an overarching purpose to make a significant contribution to mankind. “Estimates are that 50 percent of the world’s lighting could be LED in the next 5 to 10 years, which represents a 25X growth rate.” When you hold the patents on some of the most daring new LED products, which Lighting Science does, your part of that 50 percent is pretty intriguing.
However, when you consider the ability to provide light for an entire village in some remote location in the Third World using LED lighting and a small generator, that is just as exciting. Or, a technology which can dramatically reduce energy consumption, without altering our lifestyles – that is a win-win scenario. Or, what would you say to sterilizing water and air using nothing but light, or developing technologies that help balance the melatonin and serotonin levels in our brain due to our exposure to artificial light?
Creating a Culture of Innovation
Nurturing a culture of innovation is one of the priorities at Lighting Science. Maxik describes it as a convergence between building market share and moving to become a dominant player, while nurturing the internal incentives the scientists, engineers, executives and employees have of making the world a better place for everyone.
But he concedes, many of their team jokes that they are like professional athletes who are thrilled they get paid to do what they love. “It is our hobby as well as our business.”
Asking the “What if?” question is welcomed, though one of the maxims of the company is “Prove It”. They have worked to create an atmosphere where all the staff is encouraged to suggest, without fear of offense or of being rejected. Lighting Science was built by finding the most talented and creative people who could produce a very “intellectually active” atmosphere, where those developmental “rabbit trails” could be chased and there is liberty to explore. All the while there is an understanding that the purest kinds of research are those that produce innovative products that can be used in the marketplace.
Describing their R & D process, Maxik explained that one of the criteria for any new product development was that the product had to provide a return on investment (ROI) to the end customer in three years. Surprisingly, at times, they have reduced the ROI down to one year. According to Maxik, “Even if it wasn’t good for the environment, which it is, our products are a good business decision. They close the gap between environmental consciousness and a sound business investment.”
Growth Challenges
Like trying to buy clothes that fit a growing toddler, Lighting Science is not without its obstacles to overcome, and many of them are the same kinds of business challenges any burgeoning company would have to face. Malignant, verses strategic, growth can unravel the best of companies with the most remarkable and marketable product line. Logistical and operational challenges, even providing parking for their growing workforce isn’t easy.
Lighting Science’s Zachary (Zach) Gibler moved into the CEO position in June 2009 and recently appeared on CNBC, where he explained how rapidly their volume is growing. “Production in the month of April [2010] was equal to our entire production in 2009, and production in just one week in September [2010] was equal to what we did in April [2010]. By January [2011], we hope to have production levels up to April’s level on any given a day”.
The greatest challenge for Lighting Science is funding that growth. As Gibler went on to explain, many countries are willing to provide substantial incentives to American companies to outsource their manufacturing operations abroad. Lighting Science has operations in China to serve their Asian and European demands and Mexican operations for North America. But Gibler was clear, “It isn’t the wages that makes these locations preferable, it is the availability of capital,” which as everyone knows it the lifeblood of any business.
Foundations of Success
To address these ‘growing pains’ Gibler has been methodically building the business and marketing components that will ensure Lighting Science’s continuing rise in this global market.
One such step was assembling a new board that includes the likes of Carlos M. Gutierrez, who was the U.S. Secretary of Commerce from 2005 to 2009, appointed by President George W. Bush, and was also formerly the Chairman and CEO of the Kellogg Company. Gutierrez joins Michael W. Kempner, the founder, president and CEO of MWW Group, one of the nation’s largest public relations and marketing firms. Also serving on their Board is Joseph C. (Joe) Montana, the winner of four Super Bowl rings and the founder of several sports performance and investment companies.
From the shelves of your local Home Depot to the luminous ball that drops in Times Square to ring in the New Year, Lighting Sciences products light the landscape. Soon they could be found in every home, retail store, manufacturing plant, museum or concert hall. The possibilities are limitless and the benefit ratios to customers are astounding. |
