Make no mistake, broadband is here ... and it's driving consumers to reach for more sophisticated electronics tools. As of March 2006, 42 percent of American homes have high-speed Internet connections, and that number is predicted to increase significantly. U.S. households with connected entertainment networks will reach 30 million by 2010, according to research firm Parks Associates.
Meanwhile, the uses for whole-house wiring cover the gambit, from home theater, security systems, home networking, gaming, multiroom audio, lighting controls, home automation and energy management. The list of applications continues to grow as more manufacturers take advantage of technology advances by implementing new products and solutions for homeowners.
Still, many builders seem to sense roadblocks to offering structured wiring in their new homes. Back in March, during the Spring Electronic House Expo, the Consumer Electronics Association's (CEA) TechHome Division hosted a roundtable addressing common issues builders have with structured wiring installations. We list 10 of them, along with descriptions of the panel's responses.
1. Why isn't the basic installation package of coax TV, phone cable and wall plates sufficient? According to the National Association of Home Builders, structured wiring is installed in approximately 49 percent of today's new homes. If builders aren't offering digital upgrades with new constructions, there is the possibility that they are leaving money on the table. New-home buyers are more sophisticated and look for offerings that support today's 'wired' lifestyle. Many perceive structured wiring as an essential upgrade rather than a luxury. In addition to providing a backbone for a wide variety of digital home services, it also 'future-proofs' the home and adds resale value.
2. Structured wiring is too complicated. My customers won't understand it. Simply discussing data networking as an added capability won't likely do justice to the prospects of offering structuring wiring. In the context of what data networking provides -- home office capabilities, shared broadband access, online gaming and media sharing -- structured wiring appeals to today's buyer. With a younger, tech-savvy generation moving into the home market, buyers are receptive to upgrades that increase the resale value of their homes and offer expansion possibilities for adding new broadband services. Brochures and other sales materials designed specifically for prospective homebuyers -- and written in laymen's terms -- are available from manufacturers. These materials provide buyers with a straightforward overview about its features and benefits. This information can also be offered by builders to prospective homebuyers or made available as a demo in model homes. Some builders partner with local integrators that specialize in structured wiring and digital home technology.
3. Structured wiring doesn't sell homes any faster, so why offer it? More homeowners expect to have broadband access, just as they expect telephone, electricity, water and gas services. Structured wiring incorporates enclosures, service modules, RG-6 cabling and Category 5/5e wire, all of which are necessary for creating the backbone to support highspeed voice, video and data connections. Today, buyers are looking for home automation, lighting, communications, entertainment and security systems, and realize that structured wiring is a must. It also offers builders an important competitive differentiator as a value-added provider.
4. Structured wiring doesn't offer good margins compared with other upgrades or options, so why should I bother? Structured wiring should be considered a necessity in today's digital world -- a standard feature that puts builders ahead of the competition. Builders can partner with local structured wiring integrators to customize programs that achieve both the optimal upgrade options and increased builder profit margins.
5. My customers don't ask for structured wiring. The primary reason new homebuyers don't buy structured wiring, according to CEA research, is because the builder didn't offer it. Homebuyers naturally assume that in today's technical world they are getting a wiring infrastructure that allows for home networking, multiroom audio and home entertainment options to meet the needs of applications they plan to use today and tomorrow. Builders will find that taking a proactive approach and offering structured wiring -- including discussions about the simplicity of installation -- is actually an easy sell.
6. Isn't everyone going wireless anyway? Compared with wireless technologies, hard wiring is more reliable, less vulnerable to interference, and offers better media performance and higher bandwidth. Security rightfully remains a valid concern with wireless applications. Structured wiring provides the backbone required to sell other addon upgrades within the home, clearly offering a profitable new income stream for builders.
7. Structured wiring is going to complicate the construction schedule with delays. Traditional new-home wiring must be planned and installed, and structured wiring can be installed simultaneously. Integrators are familiar with timelines, so once a builder gains experience with a few installations, it becomes an easy option.
8. Can't the homeowner just install structured wiring after the home is built? Adding structured wiring to an existing home is not cost-effective for the builder or the homeowner. It also creates significant damage to drywall, trim, electrical and plumbing systems that are expensive to repair and can even create liability issues. While it can be done, a retrofit sacrifices aesthetics within the living space.
9. My builder sales team can't sell structured wiring. Installing structured wiring in a model home or showroom pre-sells the system and makes it easy for sales teams to demonstrate value to prospective homebuyers. It allows prospective buyers to get some first-hand experience with the technology. Partnering with a structured wiring integrator also helps builders increase success with customers, resulting in greater take rates on upgrades that offer higher profit margins. Pointing out the installation cost difference during construction or as a retrofit offers a persuasive argument.
10. Why add structured wiring now when I've been having success without it? Structured wiring is profitable for builders, and also provides a value-added benefit for buyers. Yesterday's homebuilding techniques don't accommodate today's digital lifestyle. Demand for multiple computers, satellite services, high-definition TVs, Internet phone service (VoIP), home-theater systems, whole-house video, as well as audio, gaming and other electronic devices make the features and benefits of structured wiring a necessity. In addition, homeowners appreciate the opportunity to include the cost of structured wiring in their mortgages.
Jason Sherrill is a product manager for Cooper Wiring Devices ([www.cooperwiringdevices.com]), Peachtree City, Ga., a division of Cooper Industries, Houston. He currently serves on the Consumer Electronics Association's (CEA) TechHome Division board.