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CE Pro 100 Reports 12% Decline in Revenue
Average company earned $6.59 million in 2008, down from $7.4 million. Average number of installations drops 5 percent.
The largest custom installation companies in the industry are not coated in Teflon after all. After being insulated from the initial housing cycle downturn in 2007, the CE Pro 100 integration companies reported a downturn of 11.7 percent in 2008.
The average company on the list earned $6.59 million in 2008, down from $7.4 million. The average number of installations was down 5 percent.
The data reflects the first across-the-board, category-wide downturn among CE Pro 100 integrators since the inception of the list in 1999. (The list only had 50 companies for the first two years.)
The 2008 statistics as a whole are somewhat encouraging, considering many other industries would be elated to show a revenue decline of only 11.7 percent. Some companies actually showed increases this year. Also, the average revenue per employee rose 2 percent — a sign that integrators are tightening their belts to be more productive with fewer employees.
Not only did the average number of installations fall in 2008, but the average installation price fell 7 percent. Those drops represent a total reversal from the trend in 2007, which saw the average number of installations and average price increase.
With both revenue and prices falling, it's a sure sign of softness in the market — unlike previous years, in which dropping installation prices could be rationalized as a reflection of a paradigm shift in the market.
Case in point: for the past several years, many dealers have seen erosions in their average installation prices as flat-panel TVs, primarily, dropped precipitously in price. That erosion was accompanied by a corresponding increase in the number of installations. It made sense. Dealers were working harder, doing more jobs to earn about the same amount of revenue. Not anymore.
Most members of the CE Pro 100 made it through 2007 without being negatively impacted by the slowdown in the U.S. housing market. Data shows that companies that appeared on both the 2007 and 2008 lists, 48 reported revenue drops, while 22 actually showed an increase in revenue.
Audio Video Design (No. 15) in Newton, Mass. showed custom revenues up $1.8 million in 2008 — an incredible feat. Several other companies reported flat revenues and the rest are new companies. Many of the new companies could also be reporting data that is lower than last year, but the survey did not include that question.
Key data from the 2008 CE Pro 100:
The prestigious CE Pro 100 list has changed from only traditional audio/video companies to a mixture of companies with roots from audio/video, hybrid retail, automation, structured wiring, security, high-voltage electrical and HVAC. The top of the list reflects that diversity.
Click here to download the CE Pro 100 list.
The average company on the list earned $6.59 million in 2008, down from $7.4 million. The average number of installations was down 5 percent.
The data reflects the first across-the-board, category-wide downturn among CE Pro 100 integrators since the inception of the list in 1999. (The list only had 50 companies for the first two years.)
The 2008 statistics as a whole are somewhat encouraging, considering many other industries would be elated to show a revenue decline of only 11.7 percent. Some companies actually showed increases this year. Also, the average revenue per employee rose 2 percent — a sign that integrators are tightening their belts to be more productive with fewer employees.
Digging Deep into the Data
Not only did the average number of installations fall in 2008, but the average installation price fell 7 percent. Those drops represent a total reversal from the trend in 2007, which saw the average number of installations and average price increase.
With both revenue and prices falling, it's a sure sign of softness in the market — unlike previous years, in which dropping installation prices could be rationalized as a reflection of a paradigm shift in the market.
Case in point: for the past several years, many dealers have seen erosions in their average installation prices as flat-panel TVs, primarily, dropped precipitously in price. That erosion was accompanied by a corresponding increase in the number of installations. It made sense. Dealers were working harder, doing more jobs to earn about the same amount of revenue. Not anymore.
Most members of the CE Pro 100 made it through 2007 without being negatively impacted by the slowdown in the U.S. housing market. Data shows that companies that appeared on both the 2007 and 2008 lists, 48 reported revenue drops, while 22 actually showed an increase in revenue.
Audio Video Design (No. 15) in Newton, Mass. showed custom revenues up $1.8 million in 2008 — an incredible feat. Several other companies reported flat revenues and the rest are new companies. Many of the new companies could also be reporting data that is lower than last year, but the survey did not include that question.
Key data from the 2008 CE Pro 100:
- Average revenue per installation was $6,034, a 9 percent decrease from $6,532 in 2007.
- The CE Pro 100 installed a total of 102,521 jobs in 2008, down from 114,495 jobs in 2007.
- The average number of installations per company is 1,090, only down slightly (5 percent) from 2007.
- California is home to 19 of the companies, while only five are based in Florida, down from eight in 2007.
- The average-revenue-per-full-time-employee benchmark increased 2 percent to $136,459.
The prestigious CE Pro 100 list has changed from only traditional audio/video companies to a mixture of companies with roots from audio/video, hybrid retail, automation, structured wiring, security, high-voltage electrical and HVAC. The top of the list reflects that diversity.
Click here to download the CE Pro 100 list.
CE Pro 100
 | CE Pro 100 Reports 12% Decline in Revenue Average company earned $6.59 million in 2008, down from $7.4 million. Average number of installations drops 5 percent. Crunching the Numbers Trends, takeaways and trite observations about the CE Pro 100 integration companies. How the Top 3 Companies Remained the Same Guardian Home Technologies, Modia and Audio Command Systems once again are the top three companies in the CE Pro 100. Download the Complete CE Pro 100 List Get the list and find out who made this year's most prestigious custom installation ranking. Verifying the CE Pro 100: How It's Done This year, 87 of the 100 companies provided verification in the form of copies of tax returns or letters from an outside CPA. Positive Signs from the CE Pro 100 How many other industries would be elated to be down just 12 percent during this "great recession"? Integrators Reveal Favorite Brands The CE Pro 100 highest-revenue-earners indicate their top brands in each of 34 custom electronics categories. Inside the CE Pro 100 Brand Analysis We're taking the CE Pro 100 Brand Analysis one step further, looking at some of the products from manufacturers in several of the 34 product categories. 6 Secrets to Success CE Pro 100 companies were asked to offer advice on marketing and employee management. Some (hire a CFO) are easy to understand and some (what's this about a car wash?) aren't so simple. | |
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About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
1 Comments (displayed in order by date/time)
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These numbers are sugar coated as they don’t take into account companies that no longer exist. I imagine if you factor those in you’ll find revenue is down 30-40%.