CEDIA View: Big Changes For ESCs Across The Board
It goes without saying that the business world, and this industry, saw great upheaval over the last few years. In changing times, the best way to survive, and even thrive, is to be armed with the best, most up-to-date information. By properly reading the tea leaves, you can see where things are headed and adapt accordingly.
CEDIA recently released our 2012 Benchmarking Survey. In it, 88 participants told us about conceivably every aspect of their business—revenue, staff, project size and type, marketing and advertising—you name it, we probably asked about it. The survey covered the period of January to December 2011. It highlights some interesting trends. Of note:
Businesses are seeing some growth and are branching out.
As you can see in the graph, net revenue has increased and is expected to grow even more this year—almost 12 percent, in fact. Staff is expected to grow, and the median number of projects from 2010 is up by more than 48 percent. Meanwhile, approximately 82 percent reported expanding their services or technology offerings in 2011.
ESCs are increasingly offering remote network monitoring and diagnostic services.
As ESCs are seeking out various types of recurring monthly revenues (RMR) to offset the declines in product-oriented profits, the biggest RMR came from remote network monitoring and diagnostics. The percentage of respondents who say they now offer it has doubled since the 2011 survey (from 16 percent to 32 percent).
Work on existing homes is now the norm.
Projects in existing homes, whether retrofit or remodel, now account for 73 percent of the typical ESC’s jobs, up slightly from 67 percent in 2010. New custom home projects now comprise only 27 percent of the typical ESC’s jobs. Members, perhaps optimistically, are anticipating the percentage of new home projects to grow to 40 percent in 2012.
Related story: CEDIA Has Your Project Inspiration