By Steven J. Thorburn On January 12, 2011
As I walked into the International Association of Amusement Parks and
Attractions (IAAPA) 2010 trade floor, it was clear that there was an
energy level on the floor that I had not felt in 10 years. This industry took a
big hit after 9/11. IAAPA was a ghost town in 2001, and no one traveled for
almost a year. Now, it seems, everyone is wheeling and dealing, optimistic
about the future. Combine this with reports that things look much better for
the design and construction industry in 2011 and you arrive at my bold claim
in the title of this column.
I’m reminded of the
giant mechanical pirate
ship in front of Treasure Island in Las Vegas. Every
night that ship comes around the corner, engages
in battle, and slowly starts to sink. But just when
it looks like the ship is about to go under, it stops,
and shortly after the show ends, it reverses motion,
rising up out of the water and moving back to reset
itself for the next battle. This last recession worked a
lot like the pirate ship. The ship has stopped sinking,
and (hopefully) we have begun moving back up.
Once the ship starts to rise, it will be interesting
to see who has still been able to cling on in the icy
waters of our economy. More importantly, how
can you make sure you are one of the lucky ones to
emerge perhaps a little dampened by the recession,
but no worse for the wear?
The first key is to be a company that can follow
directions and give the client what they require of you,
within a timely manner and at a good value. Clients are
still very price sensitive, and that’s not likely to change
any time soon. While the recession might have washed
away some of the weaker competitors, there are still
plenty of people out there bidding the same projects
you want, and value will often be a deciding factor.
Secondly, more than ever the quality of your people
and their ability to provide customer service will
dictate your future success. Perhaps my expectations
have risen, or maybe I have become more acutely
aware of the intrinsic value of a dollar, and since I
know what it takes to earn it, I place a higher premium
on what it should get me in return. Or, what is more
likely is that organizations struggling
to stay alive have slashed training
budgets and staffing levels requiring
more work from fewer people with
less guidance from management. This
will only work for so long. As the ship
starts to right itself, the smartest
businesses will take the time to seek
out the best people to work for them.
With a nearly 10 percent
unemployment rate, there is a huge
sea of people available to tap for
work, but you will have to weed
through a bunch to get to the good
ones. Taking the time and resources
upfront to find the best people will
help you down the road (though, to
be fair, retaining top talent is a whole
other issue).
Finally, I think it is increasingly
important for everyone to take
ownership in projects they are
working on. It might mean taking a
little extra time to train the on-site
technicians how to operate a system
or troubleshoot problems. Earning
that reputation for customer care will
lead to the next project, and success for the company.
Unfortunately, like the pirate ship at Treasure
Island, our economy is likely to go through this dip
again in the future. Maybe by that time the rules
will have changed, but by following these key steps
you’ll at least be closer to the top of the mast for the
next “show.”
Steven J. Thorburn, PE, LEED AP, CTS-I, CTS-D, is the design
principal for Thorburn Associates an acoustical consulting,
technology engineering and lighting design firm.
Research
Shows Industry
Optimism
NSCA and the Consumer
Electronics Association (CEA)
recently released the latest Market
Intelligence Briefing (MIB) report,
Commercial-Residential Crossover
in the Electronic Systems Industry,
which examines opportunities, challenges,
and perspectives of commercial
and residential integrators.
Despite economic challenges
during the past two years, 54 percent
of integrators overall have a
more optimistic view of 2010 than
2009, the report found. Integrators
involved in both the commercial
and residential markets were slightly
more optimistic, with 60 percent
expecting a more positive 2010.
While the complexity and specialization
of systems and services
can differentiate commercial from
residential projects, these industry
segments often intersect at the technological,
design, and information
technology levels. Slightly more than
half of those surveyed in this new
MIB report are involved in both
residential and commercial projects.
Randy Vaughan, founder of
Ambassador Enterprises, and new
chairman of CEDIA’s board, feels
that it has been a great asset to have
both commercial and residential
projects on the AE roster over past
few years, but warns against companies
who think they can simply add
the other market to their business.
“You’ve got to be able to talk the
talk, and understand what the real
needs are,” he said. “The products
are very similar, but that’s the least
of the whole thing. If they do the
research, and understand the market,
it could be excellent.”
According to the report, the top
three revenue venues for commercial
integrators are: corporate facilities;
restaurants, retail facilities, and
shopping malls; and K-12 schools.
Among these categories, this year’s
survey respondents gave the highest
ranking to retail venues. This
increase highlights areas of crossover
between commercial and residential
integrators, because the technologies
and services used for retail projects
correlate with tools used by integrators
working on residential projects.
We’ll see what 2011 brings, but
Vaughan feels positive about the
upcoming year. “I expect it to be
slightly better in residential, and in
commercial we’re dealing with a
backlog now.”