How a Detroit-Area Integrator Survived Recession

Even affluent Troy, which is home to many white-collar auto workers and corporate folks, has suffered dramatically, Bellanti says. "We went from 5 percent unemployment to 15 percent. We lost a lot of the middle class and even the upper-middle class. It's recovering, but there have been a lot of foreclosures even on $1 million or $2 million homes."

Kunnath knows this all too well. "The market is tough, real competitive," says the builder. "There are limited jobs, not a lot of new-builds, mostly remodels, and because there are so many companies bidding, you have to be more aggressive with the numbers than you would have been four years ago."

Still, there are plenty of people doing well outside Detroit, which is something that isn't often covered in the media, Shoresh says. The community, in general, is very civic-minded.

In turn, much like Spire's referral base is boosted by its manufacturing-like approach to system building, it probably also benefits from being a civic-minded company. For instance, Spire, along with manufacturer partners, recently donated a theater to the children's hospital in Detroit.

"We didn't do this as a way to generate referrals, but as a way to give back to the community," chief technology officer Jeffrey Skalny says. "We are not going to deny that there are business benefits, but the original motivation was to bring a little joy to those that need it most. It also serves us as a company to bring perspective to our jobs and our lives. You learn very quickly what real problems exist in this life, and an A/V outlet buried by drywall is not one of them."

It does generate business too. "People see the ‘thank you' notes from the hospital hanging in our office and it's a great way to start a conversation," Bellanti says. "Once a customer sees that we are not about just taking their money, they start to feel very comfortable working with us."

It may be that Spire is just a good fit for the Detroit area. Many of its competitors have shuttered over the past few years. Shoresh does think Spire - with its work ethic and community service - is a good fit, but he says his company has grown while others have fallen because it adapts.

When it launched nine years ago, Spire had a small showroom and didn't do retail. "Our competition laughed at us," Shoresh recalls. "Back then product was king. Few of these companies have survived and some have become a shell of their glory days. Our engineering background, design methods and low overhead have helped us flourish, even in this economy."

In 2007, Spire took advantage of a soft commercial real estate market and built a new experience center. Shoresh says it's a move that will pay dividends for years to come.

Spire's new showroom - and its general success - are also a reflection of something that doesn't get played up in the media much, Shoresh says: Businesses and people can still thrive in greater Detroit.

"I really want people to realize that Detroit is an amazing place for entrepreneurs. There is so much talent here, inexpensive facilities, great infrastructure and some of the best universities in the country. It's also a great place to live. Yes, I mean it."

Enter the Experience Center, ‘Not a Showroom’
Shoresh isn’t the only CE pro that prefers a more exotic name for his company space than “showroom.” And hey, if a company manages to buy real estate near Detroit in 2007, it earns the right to call it whatever it wants.

Spire’s by-appointment “experience center” is aimed at builders, architects and designers in addition to home owners. It includes “several distinct areas that highlight some common installation options in the way technology integrates into each living space,” Shoresh says. “We put great emphasis on the aesthetics of the space and this resonates well with visitors.”

It includes:

• Living room with a 5.1 media system
• Family room highlighting premium audio and video
• Dedicated theater with lighting, acoustical treatment, seating and new audio and video technologies
• Conference room for commercial offerings and to review blueprints with clients
• Foyer with invisible speakers and lighting control
• Equipment room for showcasing head-end installation ability
• Engineering area to show how its systems are built, programmed and tested

There are no price tags, boxes, flyers or TV walls. “The goal is to help the client understand the options available and then decide which are important to them. Once we establish the desire, the value of our solutions becomes clear,” adds Shoresh.