• CEPro_logo_blue-new
  • TOPICS
      • News
        • People & Places
        • Product Briefs
      • Projects
      • Events
      • Control
        • Central Vac
        • Energy/Power
        • HVAC/IAQ
        • Interfaces/Devices
        • Lighting
        • Motorized Shades
        • Whole House Systems
      • Audio/Video
        • Audio/Video
        • AV Accessories
        • AV Racks
        • Cabling
        • Displays
        • Furniture
        • Headphones
        • Home Theater
        • Media
        • Mounts/Lifts
        • Multiroom AV
        • Projectors/Screens
        • Speakers/Subwoofers
        • Wireless AV
      • Security
        • Access Control
        • Alarms/Sensors
        • Services/Platforms
        • Surveillance/Cameras
      • Business Support
        • Associations/Buying Groups
        • Cell Phone Boosters
        • Distributors/Reps
        • Operations
        • Recurring Revenue
        • Research
        • Sales/Marketing
        • Software Services
        • Tools/Testers
      • Networking
        • Cellular
        • Devices/Equipment
        • Wireless
        • Wired/Installation
      • Markets
        • Builders
        • Commercial
        • Design
        • Europe
        • Outdoors
        • Resimercial
        • Wellness
      • CE Pro Hub Pages
        • Bose
        • Savant
        • Inside Sound United
  • PRODUCTS
  • RESOURCES
    • Reports/Downloads
    • Buyer’s Guide
    • Webcasts
    • Podcasts
    • Integrator Jobs
    • Digital Edition
    • CE Pro-iQ
  • SUBSCRIBE
    • CEDIA SHOW UPDATES
    • CEPRO PRINT EDITION
    • CEPRO DIGITAL EDITION
    • CEPRO NEWSLETTERS
  • DISCOVER
    • CEDIA Expo
      • September 29 – October 1
        Dallas, TX
      • VISIT SITE
    • KBIS
      • February 8 – 10
        Orlando, FL
      • VISIT SITE
    • Total Tech Summit
      • October 26 – 28
        Orlando, FL
      • VISIT SITE
    • Commercial Integrator
      • VISIT SITE
    • Security Sales
      • VISIT SITE
    • Tech Decisions
      • VISIT SITE
    • Campus Safety
      • VISIT SITE
    • Design Well
      • VISIT SITE
    • KBB Online
      • VISIT SITE
    • AV-iQ
      • VISIT SITE
    • CE Pro-iQ
      • VISIT SITE
  • Search
  • TOPICS
    • News
      • People & Places
      • Product Briefs
    • Projects
    • Events
    • Control
      • Central Vac
      • Energy/Power
      • HVAC/IAQ
      • Interfaces/Devices
      • Lighting
      • Motorized Shades
      • Whole House Systems
    • Audio/Video
      • Audio/Video
      • AV Accessories
      • AV Racks
      • Cabling
      • Displays
      • Furniture
      • Headphones
      • Home Theater
      • Media
      • Mounts/Lifts
      • Multiroom AV
      • Projectors/Screens
      • Speakers/Subwoofers
      • Wireless AV
    • Security
      • Access Control
      • Alarms/Sensors
      • Services/Platforms
      • Surveillance/Cameras
    • Business Support
      • Associations/Buying Groups
      • Cell Phone Boosters
      • Distributors/Reps
      • Operations
      • Recurring Revenue
      • Research
      • Sales/Marketing
      • Software Services
      • Tools/Testers
    • Networking
      • Cellular
      • Devices/Equipment
      • Wireless
      • Wired/Installation
    • Markets
      • Builders
      • Commercial
      • Design
      • Europe
      • Outdoors
      • Resimercial
      • Wellness
    • CE Pro Hub Pages
      • Savant
      • Bose
      • Inside Sound United
  • PRODUCTS
  • RESOURCES
    • Reports/Downloads
    • Buyer’s Guide
    • Webcasts
    • Podcasts
    • Integrator Jobs
    • Digital Edition
    • CE Pro-IQ
  • SUBSCRIBE
    • CEPRO PRINT EDITION
    • CEPRO DIGITAL EDITION
    • CEPRO NEWSLETTERS
    • CEDIA SHOW UPDATES
  • DISCOVER
    • Cedia Expo
      VISIT SITE
    • Commercial Integrator
      VISIT SITE
    • Security Sales
      VISIT SITE
    • Tech Decisions
      VISIT SITE
    • Campus Safety
      VISIT SITE
    • Design Well
      VISIT SITE
    • Total Tech Summit
      VISIT SITE
    • KBB Online
      VISIT SITE
    • AV-iQ
    • CE Pro-iQ
M
POPULAR SEARCHES
News
Projects
Control
Audio Video
Security
Business Support
Markets
SUBSCRIBE CEDIA EXPO
Associations/Buying Groups | Business Support | Markets | News | Operations | Research
May 14, 2020

CEDIA Study: Coronavirus Impact Hits Industry Hard

CEDIA COVID-19 Study reveals business fell for 85% of integrators with most projects delayed 1 to 3 months. Paying bills and staff safety are top concerns.
Jason Knott  
CEDIA Study: Coronavirus Impact Hits Industry Hard

Integrators have been focusing significantly more on continuing education during the coronavirus outbreak, with 62% of those surveyed (in the U.S) suggesting they've spent more time on technical training recently. 

View the slideshow
Article:
Associations/Buying Groups | Business Support | Markets | News | Operations | Research
May 14, 2020

CEDIA Study: Coronavirus Impact Hits Industry Hard

Confirming with hard data what many in the industry already knew anecdotally, CEDIA has revealed the findings of its COVID-19 Impact Study and the numbers are not pretty. Like most other businesses around the world, custom integrators in the U.S., Canada and U.K. are experiencing lower revenues, concerned about paying their bills, and worried about the safety of their staffs.

Moreover, new sales that are occurring during the coronavirus pandemic are at lower price points on average. Nearly half (46%) of U.S. and Canadian integrators have either laid off or furloughed staff, and among those that have trimmed their staff numbers, the majority have let go more than half of their employees.

The survey was conducted by The Farnsworth Group from April 13-28 and had 344 worldwide respondents. In general, integrators in the U.K. are faring worse than those in America.

“It is not a big shock that there is a large negative impact on how COVID-19 has impacted businesses,” says Grant Farnsworth, director of business strategy and managing partner at The Farnsworth Group. He was joined by James Bliss, CEDIA EMEA Brand and Communications Manager for a webcast to dig deeper into the data.

About 90% of system integrators reported they are doing less work because of COVID-19 with the top reasons being homeowners not wanting contractors in their homes, government mandates, homeowner finances, and person discomfort being in close contact with others. Most integrators are currently expecting project delays to last about 1 to 3 months.

Learn the Art of Landscape Lighting Design

Experts recommend landscape lighting design as an entry point for integrators into the revenue opportunity of home lighting. Check out our new resource for tips and best practices. Download "Learning the Skill and Art of Landscape Lighting Design” today!.

Approximately two-thirds of system integrators experienced fewer bids in March, with about half stating their bids were monetarily about the same as before and the other half stating they were smaller. Along with few bids in March, about half of integrators are seeing lower project closure rates.

Most companies have experienced or plan to implement layoffs or furloughs. Nearly all integrators are concerned for the future of their business, with about half stating extreme concern primarily due to the ability to pay bills, the health of their staff, and the ability to get project requests.

Most integrators expect revenue to be less, with about half of integrators expecting much less revenue. Most integrators expect to be able to operate their business at these lower revenue levels for maximum of 3 to 6 months.

In general, smaller integration companies are in a more dire situation than larger firms, says Farnsworth. “The larger the firm, the more likely they are to stay financially stable during this crisis,” he points out.

Bliss notes that the primary reason for the U.K. dealer community being hit so much harder has to do with the national policy in Great Britain compared to the state-by-state restrictions in the U.S.

Looking forward, Farnsworth says there is no way to predict the future.

Positive Signals from the Data

CEDIA events CEDIASTRONG
Related: CEDIA Webinars Assist Integrators with ‘Financial Fitness’

On the bright side, integrators report a surge in home network installations since the coronavirus hit. The data show that 8% of integrators say their home network projects are up significantly, and another 30% say that subsystem business has increased slightly. Another 25% of integrators report their home network installation business has remained unchanged since before the lockdown. This trend clearly points to the growth in home offices and the reliance homeowners have on their Internet connections while stuck at home.

Another positive signal from the data is that the worst appears to be over. Farnsworth tracks weekly data across the entire home construction industry and the impacts appear to be lessening.

“We are starting to see the severity of the negative impact slightly decline,” he says. “It appears that the end of April is when the market bottomed out. We are starting to see signs of life.”

CEDIA Study: Coronavirus Data Is Ugly

Some of key data points for U.S. integrators from the study are:

  • 72% of integrators are experiencing fewer bids.
  • 50% of custom installers have seen their average system price drop.
  • 62% of integrators have seen their closing rate drop.
  • 77% of integrators report that business has slowed because homeowners do not want them in their homes, while 45% of integrators said projects were delayed because the homeowners are concerned about finances. Interestingly, 37% of integrators said the reason that business has slowed is because they have concerns for their own safety to enter a client’s home… so the fear of the virus is on both sides of the equation with homeowners and dealers.
  • 85% of integrators expect lower revenues in 2020.
  • 30% of projects are delayed between one and three months, another 28% of jobs have been pushed back three to six months, and 20% of projects are now delayed between six and 12 months.
  • 54% of integrators said COVID-19 was a “big negative” on their business, but 2% of integrators said the crisis has benefitted their business. Those are likely integrators who have found a niche in growing areas like wellness or security.
  • In terms of future proposals, 48% of integrators say those bids are “much lower.”
  • In total, nearly half (49%) of all proposals are for less money than before the lockdowns hit; however, 46% of integrators say their average proposal prices have not changed, and 5% have actually experienced a jump in their average job size.
  • Commercial work has also slowed, with 64% of dealers saying their requests for commercial project proposals are either “much lower” or “somewhat lower.”
  • 46% of integrators have either laid off or furloughed staff. Among those companies, nearly half (47%) have either laid off or furloughed more than half of their employees.
  • 9% of integrators say they are likely to lay off or furlough even more employees in the coming weeks.
  • 75% of U.S. integrators have applied for government assistance during the crisis.
  • During the downtime, dealers are spending time training staff (62%), researching new products or niche markets (46%), sprucing up their marketing presence and website (37%), reconfiguring their showrooms or warehouses (32%), or increasing their marketing (29%).
  • 96% of integrators are either “extremely concerned” or “somewhat concerned” about the future of their business.
  • 61% are most concerned about paying their bills.
  • 58% are concerned about the safety of their staff.
  • 32% are concerned about the safety of their clients.

ABOUT THE AUTHOR

Jason Knott
Follow
Jason Knott:
Jason Knott is Chief Content Officer for Emerald's Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. 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 has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California.
View Jason Knott's complete profile

ARTICLE TOPICS

Associations/Buying Groups • Business Support • Markets • News • Operations • Research

ARTICLE TAGS

CEDIA • coronavirus • Research

SHARE

Share On Facebook
Share On Twitter
Share On Linkedin
Share On Whatsapp
Share Via Email
Copy URL
← Previous Article Next Article →
Article Central VacNewsWellness

Amazon Acquires iRobot Roomba for $1.7B in Cash

Amazon adds iRobot's Roomba vacuum cleaner to its growing portfolio of smart home solutions including Ring, Fire TV and Echo smart speakers.
Article Amplifiers/ReceiversAudio/VideoAV AccessoriesAV RacksControlDesignFurnitureHome TheaterInterfaces/DevicesLightingMarketsMediaMotorized ShadesMultiroom AVNetworkingNewsProjectors/ScreensSpeakers/Subwoofers

SDI’s Audiophile-Centric Approach Reflects an Evolving Market 

SDI is helping Boston-area homeowners meet their home technology objectives without cluttering their homes with unsightly electronics.
Article Central VacNewsWellness

Amazon Acquires iRobot Roomba for $1.7B in Cash

Amazon adds iRobot's Roomba vacuum cleaner to its growing portfolio of smart home solutions including Ring, Fire TV and Echo smart speakers.
Article Devices/EquipmentNetworkingSecurityServices/PlatformsSponsored Content

Preventing Cyberattacks Before They Occur

guardDog’s ASM solution preemptively recognizes, exposes and shuts down cybersecurity threats before an attack can happen, and can help prevent it.

SHOW NEWSLETTER

Sign Up

CE Pro

Subscribe Sign Up

Content Types

News
Products
Projects
Companies
Downloads
Webcasts
Podcasts
Events

Specials

IntegratorJobs
CEDIA EXPO
CE Pro 100
CE Pro Summit
Awards Programs

Company Info

About
Contact Us
Customer Service
Media Solutions & Advertising

Subscribe

Magazine
Newsletters
Digital Edition

Connect

Twitter
Facebook
LinkedIn
YouTube
RSS Feed

Categories

AUDIO/VIDEO
AV Accessories
AV Racks
Amplifiers/Receivers
Cabling
Displays
Furniture
Mounts/Lifts
Multiroom AV
Projector Screens
Speakers/Subwoofers
Wireless AV
CONTROL
Central Vac
Energy/Power
Interfaces/Devices
HVAC/IAQ
Lighting
Motorized Shades
Whole-House Systems
NETWORKING
Cellular
Devices/Equipment
Wireless
Wiring/Installation
SECURITY
Access Control
Alarms/Sensors
Services/Platforms
Surveillance Cameras
BUSINESS SUPPORT
Associations/Buying Groups
Distributors/Reps
Operations
Recurring Revenue
Research
Sales/Marketing
Software/Services
Tools/Testers
MARKETS
Builders
Commercial
Design
Europe
Outdoors
Wellness
FOLLOW US ON
  • Follow
  • Follow
  • Follow
  • Follow
  • Follow

© 2021 Emerald X, LLC. All Rights Reserved.

  • ABOUT
  • CAREERS
  • TERMS OF USE
  • PRIVACY POLICY