VALO brings lighting manufacturing back to SA

VALO is bringing its manufacturing back to SA as part of an ambition to take its stadium lighting technologies to the world.

High performance lighting company VALO is bringing its manufacturing back to Adelaide following the launch of a new $8m research, development and production hub in Kent Town.

The company, which specialises in stadium lighting technologies, has boosted its local workforce from four to 15 over the past 12 months, and expects that number to quadruple by the end of the year as it explores growth opportunities interstate and overseas.

The new carbon neutral Kent Town facility is being equipped with a new state-of-the-art automated assembly line to manufacture printed circuit boards.

Previously sourcing products from manufacturers in South Korea and Southeast Asia, VALO founder and chief executive Aaron Hickmann said an overseas tour with Flinders University’s New Venture Institute several years ago inspired his vision to bring manufacturing back to his home city.

“I attended the Frankfurt lighting fair and then toured a number of manufacturing companies in Germany that manufacture the equipment to manufacture,” he said.

“Once you invest in the equipment, you can plant the equipment in China or in India, or you could put it in Australia. The only difference is our labour cost, energy cost and land cost here is the most expensive in the world.

VALO founder and chief executive Aaron Hickmann at the new Kent Town manufacturing hub. Picture: Tom Huntley

“So as long as you invest vertically from the ground up, literally own the land, own the building, own your equipment, then we can manufacture here.

“It’s a long-term play, 20 to 50 year vision really with all of this, but if you’ve got a bean counter telling you ROI needs to be less than five years, that’s why people don’t manufacture here anymore.”

VALO was established in 2012, originally manufacturing LED downlights and residential lighting products for major home builders.

When imports flooded the market, and a price war ensued, the company pivoted to a new specialisation in high performance stadium lighting.

In 2015 it embarked on its first major project - developing an LED solution for Titanium Security Arena, which became the first major basketball stadium in the southern hemisphere to be powered by LED.

VALO has since partnered with organisations including Sport SA, Adelaide United and Illuminate Adelaide, while partnerships with Sport NSW, VicSport, Baseball Australia and Hawthorn Football Club are expected to provide a platform for growth in interstate markets.

By the end of the year, Mr Hickmann expects the company to have 60 staff working across the country, while an expansion into the lucrative US market is also on the cards.

“We’ve earmarked either California or Texas, where VALO will be based, and we’ll have a presence in the United States by the end of the year,” he said.

“That’s the land of sport, the land of arenas, that’s where we need to be. The export opportunity is 20 to 100 times the opportunity that is here in Australia, which means our export potential is massive.

“We’ve already identified a number of opportunities that we’re engaged on in terms of projects. If we can launch the brand with one of those projects, most likely it’s going to be an NFL-style project, that’s the aim.”

Mr Hickmann said the company was also exploring opportunities with councils regarding smart street lighting solutions, while continuing to produce new lighting technologies for Australia’s ageing sporting infrastructure.

“We’re accelerating the use of disruptive technologies, not just in premium sport stadium lighting, but also in street lighting, and producing cutting-edge, high performance lighting

solutions for other large-scale environments such as airports, sea ports, transport hubs and distribution centres, both in Australia and internationally,” he said.

“Stadium infrastructure across Australia is ageing, and there’s a need to bring lighting up to broadcast quality in many areas. With major events such as the 2023 FIFA Women’s World Cup on our doorstep, our lighting needs are becoming increasingly important.”