Commercial Automation on the Rise
The vertical market presents a towering opportunity for commercial pros.
Demand for large-scale building automation is about to soar.
That vertical market presents a towering opportunity for commercial CE pros, according to Crestron marketing manager Jeff Singer.
Singer recently called the integration community to task, emphasizing that it shouldn't sit back while behemoth companies like Cisco and Siemens dominate building automation - an industry he says is approaching $1 billion in North America without even counting commercial lighting, which itself is closing in on $1 billion.
"The A/V industry is changing, and the industry needs to grow up and see what it wants to be," Singer said.
Crestron isn't alone in predicting that building automation is poised for tremendous growth. Building managers increasingly want to bring control of systems together, including audio, video, security, lighting, IT, telecommunications, mechanical, electrical and plumbing, according to a report by Acclaro Growth Partners. The report indicates that demand will increase for a whole bunch of reasons, especially energy- and money-saving benefits.
Acclaro contends that CE pros - especially those comfortable installing Crestron and AMX controls systems - are well-equipped to provide the solutions building managers will demand because those products "already have the capability to provide total building automation."
But just because demand is likely to exist and CE pros have the requisite technical ability doesn't mean it's the right move for them, according to Nick DeClemente of Concierge Direct, an integrator with plenty of building automation experience. "It's unbelievably difficult" to be profitable, he says, and most CE pros lack the necessary bandwidth.
DeClemente concedes that CE pros with lots of commercial experience are better equipped for building automation "because they're used to living in a bid-spec world." Ultimately, though, he says he'd "be very cautious recommending [building automation] to integrators that are ill-prepared to do it - and most of them are."
But his integration company can handle it. CE Pro chronicled its ambitious automation project in New York City's The Plaza Hotel. For others that want to see if they're up to the challenge, Acclaro has a few suggestions:
But it might be worth investigating whether you can ride the wave of a potential $2 billion industry.
That vertical market presents a towering opportunity for commercial CE pros, according to Crestron marketing manager Jeff Singer.
Singer recently called the integration community to task, emphasizing that it shouldn't sit back while behemoth companies like Cisco and Siemens dominate building automation - an industry he says is approaching $1 billion in North America without even counting commercial lighting, which itself is closing in on $1 billion.
"The A/V industry is changing, and the industry needs to grow up and see what it wants to be," Singer said.
Crestron isn't alone in predicting that building automation is poised for tremendous growth. Building managers increasingly want to bring control of systems together, including audio, video, security, lighting, IT, telecommunications, mechanical, electrical and plumbing, according to a report by Acclaro Growth Partners. The report indicates that demand will increase for a whole bunch of reasons, especially energy- and money-saving benefits.
Acclaro contends that CE pros - especially those comfortable installing Crestron and AMX controls systems - are well-equipped to provide the solutions building managers will demand because those products "already have the capability to provide total building automation."
But just because demand is likely to exist and CE pros have the requisite technical ability doesn't mean it's the right move for them, according to Nick DeClemente of Concierge Direct, an integrator with plenty of building automation experience. "It's unbelievably difficult" to be profitable, he says, and most CE pros lack the necessary bandwidth.
DeClemente concedes that CE pros with lots of commercial experience are better equipped for building automation "because they're used to living in a bid-spec world." Ultimately, though, he says he'd "be very cautious recommending [building automation] to integrators that are ill-prepared to do it - and most of them are."
But his integration company can handle it. CE Pro chronicled its ambitious automation project in New York City's The Plaza Hotel. For others that want to see if they're up to the challenge, Acclaro has a few suggestions:
- Test the water with retrofits
- Pursue relationships with facility managers, building owners and real estate professionals
- Focus on buildings "where there is more of an A/V function" like museums, libraries, schools and higher-end hotels
But it might be worth investigating whether you can ride the wave of a potential $2 billion industry.
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About the Author

Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.



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