The act of hedging is to protect oneself against loss by making balancing or compensating transactions. LumenCache is an innovative DC to DC power distribution platform which, among other benefits, provides builders with the opportunity to protect themselves against spikes in the price of copper due to processed copper shortages, as well as spikes in labor costs and scheduling constraints as a result of a shrinking pool of licensed electricians.
Copper as a metal is abundant throughout the world. As a society, we are not at risk of running out of copper any time soon. However, the process for turning copper ore into a metal that can be used for piping and wiring is limited, and demand for processed copper is growing far faster than new processing capacity is coming on line.
The move across the global economy to electrify the operation of buildings and to use electricity to fuel vehicles is creating a shortage of processed copper, which in turn is pushing the price up. These changes have already pushed the price of Romex 14/2 wire, the most commonly used wire in a home, to over $.50 per lf, and the price is expected to continue to increase to near $1.00 per lf over the next couple of years.
The same forces that are driving an increase in demand for copper are also driving an increase in demand for licensed electricians. However, there is another issue impacting the supply of electricians: the great labor shortage. The National Electrical Contractors Association (NECA) projects a need for 80,000 new electricians each year for the next 10 years to eliminate the electrician shortage. Currently, there are 3,000 more electricians retiring each year than joining the workforce. It is also important to note that it takes 4 years for a new candidate to make it through the ranks of journeyman to become a licensed electrician.
The LumenCache DC power distribution platform has many technical benefits, which will be addressed in future articles, but it is also an effective hedge against future increases in the cost of heavy copper wiring and licensed electricians. Here is a brief list of the pure economic benefits:
- Typically uses a single slot on an AC panel to power all of the lighting and low volt, DC powered devices in a home (lights, fans, USB outlets, etc.)
- Power is distributed using wiring with 80% less copper than typical wire used in homes today
- The entire LumenCache platform can be installed by a trained installer, but does not require a certified electrician
To learn more about the LumenCache system and to evaluate the benefits it can offer to your homebuilding business, contact Stephen Crouch at firstname.lastname@example.org or Derek Cowburn at email@example.com.