One Voice: Positive Signs from CEDIA EXPO 2012
Well, another EXPO has come and gone ... and what I heard throughout the event from manufacturers was how qualified the attendees were this year. One manufacturer told me this had been his best EXPO ever in terms of meeting decision makers, signing business, and getting the absolute most from his time and money.
Another manufacturer who’d been away from the industry for awhile, but has since returned, said that it was all about providing the largest margins with the greatest end-user solutions for his dealer base. He couldn’t have been happier this EXPO with a “packed booth and plenty of new business; EXPO was money well spent.”
At EXPO, I attended a press conference that included the highlights of a 2012 CEDIA report/research project produced with Parks Associates entitled: Size and Scope of the Residential Electronic Systems Market in the US. A key (and possibly most important) finding was that 2012 is expected to continue being better than 2011:
• ESCs project 18% revenue growth per installation, from an average of $28K in 2011 to $33K in 2012. Average project size is expected to increase in 2012.
• Electrical contractors anticipate an 80% increase in revenue per installation, from an average of $20K in 2011 to $36K in 2012.
• IT Pros also expect an increase in project prices; only security installation firms project flat project prices for 2012 compared to 2011. Number of completed projects is expected to increase in 2012
• ESCs expect 20% growth; security installation firms project 17% growth; IT Pros project 12% growth; and Electrical Contractors expect 8% growth.
• Significant increase from 2011 to 2012 in companies reporting product/service expansion. All dealer channels seem to be recognizing opportunities to leverage existing skills in new product or service segments to increase revenues per job, sell up-grades and add-ons, and serve new customer types.
• 73% to 84% of projects are in existing homes, and ESCs are adapting well.