Research by EH Publishing on the Installation Market Shows That the Largest Integrators Reported a Rebound in 2003, with Average Revenues of $3.87 Million.

How Does Your Integration Company Compare?

The two-armed custom-installation industry is now a three-legged stool. Audio and video have been joined (and surpassed) by structured wiring as the most common types of integrated subsystems installed by the largest dealers. And the logical result of the difference between structured-wiring-based businesses and A/V specialists is the continuing trend toward smaller installations, but a whole lot more of them.

This latest research from CE Pro magazine (sister publication to TecHome Builder) bears an important message for homebuilders who have not yet embraced structured wiring with open arms. In fact, the 2003 CE Pro 100 installed an average of 491 multi-subsystem jobs...a 15 percent increase over 2002, when the CE Pro 100 averaged 427 installations.

The revenue and installation growth is just one of the results from the 2003 CE Pro 100, a listing of the largest custom electronics installation businesses in North America. Once again, the list is a diverse mix of A/V companies, security firms, and hybrid consumer-electronics retailers with installation operations. The list is constantly changing, with several new participants this year.

Among the key data this year are:

• The CE Pro 100 reported total revenues of $387,777,054, a 15 percent increase over 2002's total revenue of $336 million.

• The average revenue per installation is $4,825, a 39 percent drop in the average price of a job from the previous year's $7,884. Moreover, it's a 61 percent drop over two years from the historically high $12,444-per-install figure reported in 2001. The trend once again is very apparent toward smaller, but more frequent, jobs.
• The CE Pro 100 installed a total of 80,357 jobs in 2003, an increase of 88 percent over the previous year. If several large companies are subtracted from the totals, an apples-to-apples comparison from last year still shows an average of 511 installations per company, a 19 percent boost over 2002.
• The largest company reported $18.5 million in revenue.
• More than one out of every four companies (28) is based in California.
• The average-revenue-per-full-time-employee benchmark was $116,205. The 2003 figure is up slightly (3 percent) from $113,191 per employee in 2002.
• 27 of the CE Pro 100 report having more than one business location. Continuing Trend Toward Smaller Jobs.
• For builders, the overriding trend from this year's data is the continuation of a trend that was first identified last year: smaller jobs with a lower price tag, but lots more of them. These smaller jobs are a reflection of the industry's moving away from being solely A/V-centric to being supported by structured wiring.

One welcome aspect of lower average installation prices is the opening up of the middle market. With homes priced between $300,000 and $750,000 as the "sweet spot" for electronics, this year's Electronics Installation Business Survey, conducted by EH Research and sponsored by GE Security, confirms that the middle market is the prime target for most integrators.

Fastest-Growing Areas for 2004
1. Flat-panel displays
2. Home theater (all types)
3. IP-based home controls
4. Video and audio servers
5. Lighting control (tie)
5. Distributed audio (tie)
7. Home networks
8. Structured wiring
9. Security
10. Window shades

Home-theater rooms—both dedicated and multipurpose using FPTV, RPTV and flat-panels—are anticipated to be hot sales areas for CE Pro 100 dealers.

Which Home Tech Brands Do Large Integrators Use?

The most-used brands by CE Pro 100 integration companies in various home technology categories are listed. The rank is based on the number of integrators using the brands. Builders should be aware of these brands.

Top Speaker Brands
1. SpeakerCraft
2. Sonance
3. Niles
4. JBL
5. Triad

Top Wire Brands
1. Liberty
2. Monster
3. Genesis

Top Audio Component Brands
1. Denon
2. Integra
3. Yamaha

Top Energy Mgmt. System Brands
1. Honeywell
2. Aprilaire

Top Security System Brands
1. Honeywell
2. GE Security
3. DSC
4. Bosch
5. Napco

Top FPTV Screen Brands
1. Stewart Filmscreen
2. Draper
3. Da-Lite

Top Telephone System Brands
1. Panasonic
2. Avaya

Top Structured Wiring System Brands
1. OnQ Home
2. UStec
3. Open House
4. Leviton
5. Greyfox
6. Futuresmart

Top Lighting Control Brands
1. Lutron
2. Vantage
3. Litetouch

Top Central Vacuum Brands
1. Beam
2. M&S Systems
3. MD Mfg.

Top Hard-drive Audio Server Brands
1. ReQuest Multimedia
2. Escient

Top Television Brands
1. Sony
2. Samsung
3. Runco
4. Sharp
5. Pioneer
6. Mitsubishi
7. Marantz
8. Fujitsu

Top Distributed Audio System Brands
1. Russound
2. Elan
3. Xantech
4. M&S Systems

Top Whole-House Automation Brands
1. Crestron
2. Elan
3. HAI
4. AMX