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CEDIA HOME CONTROLS REPORT CEDIA EXPO ATTRACTS CE ENTHUSIASTS WORLDWIDE control — will keep them as a staple in these types of projects. T ey can off er a service that is not plug-and-play and may never be, " Shonkwiler says. Home theater / audio systems — T e average number of installations for 2011 and projected for 2012 remains steady. T e average project size was $20,000 for home theaters and $11,000 for audio sys- tems. According to the report, more than 30% of security installation companies surveyed are already off ering distributed audio and video to their clients. Also to consider, wireless technology is being widely used in audio system installations. More than one-third (39%) of dealers surveyed report they are incorporating wireless technology, and a similar num- ber (37%) are implementing a mobile device as the primary control interface. For those dealers that have yet to em- brace this category, it's a good option to look into to diversify your business. Among other key fi ndings, expecta- tions for security system installations re- main about the same in 2012 compared to 2011. CEDIA's results show 22% of se- curity installations in 2012 are IP-based, and 46% of security system dealers off er professional monitoring services using their own central station or a third-party provider. Energy management and mon- itoring also appears poised for signifi - cant growth as more installation fi rms gear up to off er services such as climate and lighting controls, automated shad- ing and motorized window treatments. "One of the great things that will help this industry come out of the recession and see a positive trend in growth, even if it is modest, is that technology is get- ting out to the mass adopter faster than ever before because of the iPhone, be- cause of that mobile device possibility," Shonkwiler says. "T at ability to now appeal to a larger audience is defi nitely going to drive additional installations. " RETROFIT AS BUSINESS SAVIOR Reinforced by CEDIA's report is the stark reality that projects in the residential market have remained heavily one- sided in existing homes while new home Custom Electronic Design & Installation Association revealed the preliminary results of its second annual report titled "Size and Scope of the Residential Electronic Systems Market in the U.S." at CEDIA Expo 2012 in September. Erica Shonkwiler, CEDIA market research manager, presented key fi ndings from the study during a featured press conference at the event, which was held at the Indiana Convention Center in Indianapolis. More than 450 exhibitors displayed and demoed wares for more 16,900 attendees from 71 countries. Despite several years of recessionary conditions, CEDIA announced the expo ex- perienced positive growth with non-exhibitor attendance gains of 4% over last year's event. Ninety new exhibitors and more than 80 home technology products made their debut at the event. Other highlights included guided tours of CEDIA's Future Technology Pavilion, which showcased technology solu- tions that brought together the fully intuitive home, a dedicated Security Solutions area and much more. CEDIA, a global trade group with 3,500 member com- panies, infl uences public policy, provides referrals, promotes better business practices, educates members, among other benefi ts. Its annual CEDIA Expo is considered by many as the leading tradeshow in the residential electronic systems indus- try. Interested in attending next year's expo? If so, make plans to travel to Denver, Sept. 25-28. The tradeshow fl oor will be open Sept. 26-28. For more information, visit cedia.net. construction continues to recover from the recession. Results show 73%Ǧ84% of all installations are now retrofi t. In 2007, the ESC channel was estimated to have a near 50-50 split between work in new vs. existing homes. In 2011, the mean percentage for ESCs' revenues from residential business was 72%. As for installing security installers, the latest numbers show 77% of their gross revenue is generated in existing homes with the balance in new construction. Could the tide be on the verge of return- ing to a more balanced split between the two market niches? T e latest housing numbers available at press time indicate a vast improvement that could revitalize the economy's sluggish recovery. According to the Commerce Depart- ment, construction starts in September were at an 872,000 annual rate, up 15% month-over-month and up 35% year- over-year. In fact, construction activity in September was at its highest level since July 2008. T e increase has been fueled by record-low mortgage rates, more stable home prices and a shortage of 40 / SECURITYSALES.COM / NOVEMBER 2012 previously occupied homes for sale. While a boost in construction starts may eventually lead to a rebirth of sorts for the new home market, the dealer channel for the time being will remain heavily entrenched in existing homes. Getting there proved to be a diffi cult transition for many companies; however, expected growth in 2012 illustrates that ESCs are adapting and fi nding oppor- tunity in changing markets. All dealer channels seem to be recognizing oppor- tunities to leverage existing skills in new product or service segments to increase revenues per job, sell upgrades and addǦ ons and serve new customer types. "Contractors and integrators had to adjust to the fact the majority of their business was retrofi t and remodel. Many had to seize those opportunities in order to survive, " Shonkwiler says. "Hard les- sons were learned. For a while, there was just a lot of denial. People didn't want to give up the fact a lot of their business came from new homes. " Rodney Bosch is Managing Editor of SECURITY SALES & INTEGRATION. He can be contacted at rodney. bosch@securitysales.com or (310) 533-2426. Erica Shonkwiler, CEDIA market research manager, presented key fi ndings from the association's residential electronic systems market report during CEDIA Expo 2012, held in September in Indianapolis.