NSCA And CEA Report Integrators Have A More Optimistic View Of 2010 Than 2009 - AvNetwork.com

NSCA And CEA Report Integrators Have A More Optimistic View Of 2010 Than 2009

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CEDAR RAPIDS, IA—The National Systems Contractors Association (NSCA) and the Consumer Electronics Association (CEA) today 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.

According to the report, the venue integrators focus on, depends on the sector they represent. The top three revenue venues for commercial integrators are: 1.) corporate facilities; 2.) restaurants, retail facilities and shopping malls; and 3.) 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.

The single-family detached housing market is the most popular venue for residential work and was cited by 92 percent of the respondents as their most significant residential venue. The remodel/retrofit arena was selected by 58.9 percent of respondents as providing the single most significant residential market value among all survey respondents, notwithstanding the company’s size or level of residential market involvement.

The report shows there is still a significant difference between residential and commercial integrators in revenue-generating applications. For example, home theater, automation and multi-room A/V are the top applications for those surveyed who are involved with the residential segment. Conversely, commercial integrators rank audio (fixed installation, live sound), A/V (display technology, interface control), video, and life safety as their top applications.

Commercial and residential integrators alike recognized the economy’s effect on their companies, identifying an improving economy as an opportunity to increase business. However, the economy has also hindered financing for new projects and increased competition for both commercial and residential contractors. But, over half (55 percent) of residential contractors see an increased demand in the retrofit market as one of their top market opportunities. A depressed housing market and lower market demand by commercial customers are also challenges for these sectors.

NSCA’s quarterly MIBs provide the electronic systems industry with current data on key industry issues complete with statistical results, interpretation, implications, market knowledge and implementation goals. This report is available for purchase at the CEA online store, for $1,500. NSCA corporate members can obtain a free copy of the report here; CEA members can obtain the report for free here.

A joint webinar presentation is scheduled for 3-4 p.m. ET on November 1. For more information and to register, click here.

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