7 Ways to Grow Revenue in 2010

When CE Pro released its 2010 State of the Industry Report, the numbers were hard to swallow:

• The average custom electronics integration company experienced a 51 percent drop in revenue from residential installations in 2009.
• The gross median revenue of an installation company plummeted from $1.09 million in 2008 to $531,250 in 2009.
• The average number of installations plunged from 134 to 78 jobs.

But that doesn’t mean all of these companies are giving up on the CE industry. In fact, nearly 50 percent of integrators are predicting higher revenues in 2010 and 34 percent expect flat revenues.

New Opportunities Await

One of the reasons for this optimism is the emergence of new revenue sources in the marketplace. From energy management to digital media, commercial to home health technology, retrofit to recurring revenue, CE pros are finding ways to bounce back.

That’s one reason over 1,000 of them have already signed on for EHX Spring 2010: The New Opportunities Show (March 25-27in Orlando, Fla.). EHX and CE Pro have put together a lineup of CEDIA training, CE Pro sessions and "Office Hours," Dealer-to-Dealer Panels and Manufacturer Training to provide you with the education and training you need to get involved.

"The industry has become extremely competitive," said one CE Pro survey respondent. "The only way to stay ahead of the pack is by promoting your business through creative ways. It seems as though entrepreneurs want to sit back and watch the money roll in. However, we all know that is just not going to happen!"

Get the CE Pro experts' take on these new opportunities, and then see how you can capitalize on them at EHX Spring.

Commercial

CE Pro says: "Another trend is the move toward more residential integrators working in the commercial market. One-fourth of a typical CE pro's income now comes from commercial work. Likewise, the majority of integrators perform at least one commercial job per year, with 80 percent of you doing installations in small office environments."

Find it at EHX:

• Light Commercial Markets: Critical Success Factors You Need to Know before Getting In
• Digital Signage Success Stories

Smart Energy

CE Pro says: "By far, energy management and alternative energy creation were named as the most likely new opportunity in 2010. 84 percent of dealers report that they will be expanding into green initiatives this year."

Find it at EHX:

• Getting Into Green: Understanding USGBC’s LEED
• Go Beyond the Hype and Find the Real Opportunities in the New Energy Economy

Retrofit

CE Pro says: "The move toward the existing home market as the primary source of new business continues to gain steam. In 2004, 60 percent of revenue was derived from new home construction. Today, it's just 41 percent. That trend is likely to continue in 2010 if the new home market remains stagnant."

Find it at EHX:

• Retrofit Installation
• Important New Wireless Technologies for the Existing Home Market

Digital Media

CE Pro says: "Dealers report that they are now wielding their knowledge to influence consumers' choices for digital media management, such as online music and video download services. CE pros report that they are the No. 1 influence for customers on digital media products and programming sources."

Find it at EHX:

• Designing Ethernet Networks
• The Insider’s View of the Technology

Home Health Tech

CE Pro Readers said: When asked which future business opportunities integrators will explore in 2010, 46 percent of respondents indicated Home Health Technology. Smart choice. The rapidly growing population of seniors is a lucrative audience hungry for technology that can't be ignored.

Find it at EHX:

• The Next Giant Revenue Opportunity for Dealers
• Case Studies and Advice with Real Dealers in the Aging/Technology Sector

Custom Electronics

CE Pro Readers said: An analysis of the 2009 expenditures-per-product revealed home theater remained the most stable product category (over $96K!), experiencing a decline of only 19 percent from the previous year. EHX continues its commitment to the custom electronics industry by providing in-depth training and the hottest new products in this space.

Find at EHX:

• Advanced Home Theater Design Lab
• Using 2.35:1 Anamorphic Lens Systems to Deliver the True Widescreen Experience

Branching Out on Your Own?

CE Pro said: The survey revealed an increase in small companies, those with gross revenue less than $250,000 (33% in 2009 compared to 22% in 2008).

While these numbers were impacted by a down economy, CE Pro suggests the increase could also be due to former technicians who have opened their own business. And if you are going it alone, there is plenty of training to get you on your way.

Find at EHX:

• Introduction to Operational Management
• Working with the Architectural, Interior Design, & Builder Community