Positive Signs from the CE Pro 100

I realize most people hate anybody from the media. We tend to jump on anything negative, from hurricanes to housing to politics. And the media eats up recessions.

It all becomes self-perpetuating, too. The more bad news about the economy, the worse people feel, and the worse it gets. It's a snowball effect.

So let me be the first one to try to stop the snowball. The 2008 data from the 11th annual CE Pro 100, at first glance, is a real downer.

• Revenues fell 12 percent
• The number of installations dropped 5 percent
• The average revenue-per-installation fell by $498

But there is a lot of good news.

Despite revenues being down per installation, the average revenue per employee has increased. That's a clear sign that the largest and most successful integration companies in the industry are responding appropriately to the recession. Almost all the companies on the list have reduced their staffs since last year by an average of seven employees. (See chart below.)

And how many other industries would be elated to be down just 12 percent during this "great recession"? I would bet my right arm that car dealerships, airlines, retailers, restaurants and even media companies would trade with integrators in a heartbeat.

So, congratulations to every member of the CE Pro 100 for showing the rest of the industry the way out of this recession. I hope to see most of the CE Pro 100 during our second annual CE Pro 100 Summit in Los Angeles Nov. 2-4, where the group will be sharing many of the best practices that helped them thrive in this economy.

At EHX Spring, keynoter Steve Hayes of SnapAV told the audience that there is "good news" regarding the economy: The United States has reached "a 90-percent employment rate." Hayes correctly pointed out that CE pros don't sell systems to people who are unemployed. They sell them to people who have jobs, and right now, nine out of every 10 people have jobs. Those are the people you should be concentrating on.

Executive vice president Jim Ristow of the buying group Home Entertainment Source (HES) offered some great logic for attendees at the recent Brand Source/HES Summit in Dallas. With the demise of Circuit City and Tweeter, there are many consumers looking for a place to purchase electronics and have them installed.

Yes, many of those consumers will go to Wal-Mart and Costco if they don't need installation, and some will turn to Best Buy/Geek Squad for installation services.

But a huge chunk will become clients of custom installers and specialty retailers like you.