LZF´s factory. Photo courtesy of LZF.
Arkoslight´s factory. Photo courtesy of Arkoslight.
LZF´s factory. Photo courtesy of LZF.
Arkoslight´s factory. Photo courtesy of Arkoslight.
The 2024 DANA has had a profound impact on the Valencian lighting industry, disrupting both production and supply chains. While some facilities were able to avoid direct damage, the impact was felt at the material and operational levels, resulting in delivery delays and additional costs. Three luminaire companies from the region share their experiences, strategies, and plans for overcoming this disaster.
For Fambuena, the DANA was devastating: "Water and mud flooded their warehouses, showrooms, and assembly areas up to a meter and a half deep, causing significant economic losses. The company's raw materials, merchandise, and equipment were compromised, and it had to reprocess outstanding orders at significant cost. To resume operations, Fambuena contacted customers to explain the delays, relied on unaffected factories, and secured payment extensions from banks, Social Security, and the Tax Agency. While 85% of customers accepted the delays and didn’t cancel their orders, the company is worried about cash flow issues if government aid continues to fall short and insurance doesn’t cover the full extent of the damages.
For LZF, the DANA had a major impact on both production and logistics. The factory in Chiva suffered damage to stored materials, leading to delays in the supply chain and international shipments. In response, the company implemented a contingency plan that included reassigning shifts, expanding the logistics team, and working with alternative carriers. Looking ahead, LZF has put in place a more robust inventory management system, diversified its suppliers, and upgraded its facilities to better protect against extreme events. "Our international customers and partners have been incredibly supportive, which has been so important in helping us get back to business as usual," says LZF.
Although Arkoslight’s headquarters is located in an affected area, the company was fortunate to avoid significant property damage. But many employees lost their vehicles, and the company's much-anticipated 40th anniversary celebration had to be canceled. Production and logistics were back up and running within two weeks, and Arkoslight was able to maintain service continuity by having enough inventory on hand. The company believes that "investing in robust, reliable architecture and maintaining a balanced sourcing policy are essential," and recommends this approach to all companies in the sector.
Despite the varying degrees of damage, all three companies agree that solidarity has been crucial in overcoming the crisis, which has exposed the vulnerability of supply chains and underscored the need to strengthen logistics strategies. Through measures like supplier diversification, inventory optimization, and investment in infrastructure, the Valencian lighting sector is preparing to be more resilient to future challenges. These initiatives will ensure operational continuity and lay the foundation for turning adversity into opportunities for innovation and growth.
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