Security Sales & Integration

November 2012

SSI serves security installing contractors providing systems and services; surveillance, access control, biometrics, fire alarm and home control/automation. Coverage in commercial and residential product applications, designs, techniques, operations.

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RESIDENTIAL RESEARCH CEDIA Sees Growth in Home Controls by Rodney Bosch Custom Electronic Design & Installation Association's latest research projects a 5% gross revenue increase this year compared to 2011 for electronic systems contractors. Among key fi ndings, the residential network is rapidly becoming the backbone of virtually every low-voltage subsystem in the home. Plus, highlights of CEDIA Expo 2012. I nstalling systems contractors are evolving from years- long recessionary tumult and a ravaged housing market better adapted to overcome challenges in a fast-chang- ing residential marketplace, according to a recently released study by the Custom Electronic Design & Installation Association (CEDIA). T e results of "Size and Scope of the Resi- dential Electronic Systems Market in the U.S. " feature data gath- ered from 770 contractors, detailing characteristics of companies working within the residential market, the current number of installation companies in the industry, the size of the workforce, trends, forecasts, and the economic impact of the industry. While the overall pace of growth noted in the study is modest, CEDIA Market Research Manager Erica Shonkwiler says that likely works to the favor of many companies that are emerging from the economic collapse as much leaner organizations. "For a long time people experienced such great success in this industry that they didn't have to focus on running really lean companies. T ey didn't have to worry about what they were do- ing back of house, them is no matter how much business comes in the front door from here on forward, they are going to run an effi cient, strong, 38 / SECURITYSALES.COM / NOVEMBER 2012 " she says. "What the last few years have taught durable company. Slow growth after that lesson will help the industry to be more prosperous in the long run." Participating dealers included electronic systems contractors (ESCs), security installing contractors, electrical contractors and IT professionals. An "other" segment included remodelers, etc. T e report, now in its second year, was conducted with the help of Dallas-based research fi rm Parks Associates. Although com- piled and released this year, the data was gathered in 2011 and is a follow-up to the inaugural report excerpted last year for 2010. Among notable conclusions from the report, the surveyed contractors anticipate a 5% gross revenue increase and a 17% increase in the number of projects in 2012 compared to 2011. Moreover, installing contractors report a greater percentage of projects in existing homes than ever before while indicating they are expanding into new product and service off erings. OVERALL REVENUE PICTURE FOR DEALER SEGMENTS CEDIA estimates there are between 20,000-22,500 contracting fi rms in the U.S. that install at least one type of technology from the association's portfolio of 20 residential product categories. (T e online version of this story includes a chart listing each

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