CE Pro 100 integration companies overcame inflation, supply chain shortages, rise in DIY systems, lack of skilled labor and a slowing housing market to maintain their upward revenue momentum in 2022.
According to the 24th annual CE Pro 100, the median revenues for the top-performing custom integration firms grew 3.6% to $6.8 million last year. While a 3.6% increase in revenues might not seem like much when compared to the past several years of double-digit pandemic-fed gains, it is nonetheless a solid rise given the numerous obstacles facing the market. The CE Pro 100 list is based on all revenue sources as the basis for the list as it reflects the growing diversity of companies in the commercial space, retail, online and especially recurring revenue.
For this year’s downloadable list, CE Pro delineates for each company the number of residential and commercial installations, along with the percentage of revenue derived from recurring monthly revenue (RMR) sources.
2023 CE Pro 100 Fast Facts
The median number of installed residential systems in 2022 by the CE Pro 100 was 210, down 9% from last year’s median of 230 installations. The median number of installed commercial systems by the CE Pro 100 was 16, up from 11 systems last year. The increase is a sure signal that the dip in commercial business caused by the pandemic was waned and more vertical markets such as offices, bars, restaurants, hotels, entertainment venues, houses of worship, schools, and even retail have all re-opened post COVID-19.
In terms of employees and productivity, the median number of employees is 28, up one from last year. The revenue per employee in 2022 is $291,903, up slightly by 2.5% from 2021.
In terms of company age, the CE Pro 100 companies tend to be much more established than the rank and file of the industry with a median 23 years in business.
RMR continues to grow as a revenue source among integrators. More than eight in 10 integration companies (83%) earn some sort of recurring revenue, that is up slightly from 79% in 2021. The median percentage of revenue derived from recurring sources is still quite small, however, at just 3%.
Once again, the companies at the top of the list are both volume-based security firms (ADT and Guardian Protection) that have migrated their pure security businesses into the smart home by adding HVAC, lighting control and other amenities.
Check Out the Full Downloadable List for Free
Don’t miss out on seeing how the top integrators in the industry are forging ahead through adversity and uncertainty. Download this year’s CE Pro 100 list for FREE here.
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