CEDIA Dealers Report 13% Revenue Jump in 2010
Association's annual benchmarking survey reveals higher revenues and profits for integrators last year.
Both revenues and profits increased in 2010 for integrators.
Those are among the key findings released by the Custom Electronic Design & Installation Association (CEDIA) from its 2011 Benchmarking Survey, which evaluates the state of the CEDIA member electronic systems contractor businesses for calendar year 2010 and reports on 2011 expectations. Results from the survey indicate that companies are beginning to see some relief from the economic downturn; respondents anticipate the number of growth opportunities to increase in 2011.
The key findings reveal:
- Respondents reported their gross revenue increased by 13 percent from 2009 to 2010.
- Average net profit margin rose to 4.1 percent in 2010 from 3.5 percent in 2009, after having dropped by nearly half from 6.8 percent in 2007.
- The median number of projects for an ESC company in 2010 was 41, with an average project size of $32,000.
- Remodeling and retrofit work in existing homes continues to be the leading source of revenue for an integration company, making up 63 percent of gross revenue.
- Respondents reported that “systems integration/control” was the most profitable product category for them in 2010.
- While still the largest category, the “home theater/media rooms” product category dropped significantly as a percentage of gross revenue from 24 percent in 2009 to 17 percent in 2010.
Overall, the data mirrors much of the same information revealed in the CE Pro State of the Industry report in January.
“CEDIA’s Benchmarking Survey provides a snapshot of the performance data of industry companies,” says CEDIA CEO Utz Baldwin. “The data gives ESCs the ability to compare themselves to industry averages and high performance metrics, allowing them to identify their company’s strengths and improve upon weaknesses to accomplish greater profitability.”
The survey report provides detailed benchmarks, best practices, and trend analysis based on data collected from CEDIA member electronic systems contractor (ESC) companies. The data represents company information in such categories as strategic and business planning, financial performance and management, operations, and staffing and compensation.
The CEDIA Benchmarking Survey is designed to provide external references and best practices that will help ESCs evaluate and improve their business operations. The survey results also help manufacturers, distributors, sales representatives, consultants, analysts, and those seeking to enter the industry assess the state of the electronic systems contractor business and analyze opportunities for growth and development.
The full Benchmarking Survey report, conducted by independent research firm Brand Ubiquity, will be made available free of charge to the CEDIA members who participated in the survey. The survey is available for purchase through the CEDIA Marketplace at a rate of $1,495 for non-participating CEDIA members and $2,995 for non-members.
We're Looking for Your BEST Projects
Don’t miss your chance to enter to win a 2019 BEST Projects Award. We’ll be announcing winners at a special Gala event at CEDIA EXPO. We can’t wait to see what you’ve been up to this year! Enter your projects now.
ResearchABI Study States 4K Poised to Serve as the Public’s Preferred Video Format
What Recession? CE Pro Mid-Year Report Predicts Growth for Second Half of 2019
Houzz Survey: Outdoor Security Having a ‘Major Moment’
Control4, Crestron, Savant Top Home-Automation Charts - CE Pro 100 Brand Analysis 2019
Sonos and the Home Gym: Untapped Potential?
View more on Research