Howdy folks. Welcome to the Week in Playback. We got some big news to cover this week, but before we get into that, I think some context is warranted.
The start of 2025 was rocky to say the least, not just for custom integration (CI), but the world at large. New administration. New trade policies. And the same old lingering concerns that the United States economy might have been lingering on the precipice of a recession; only now you had additional worries about stagflation getting thrown in there.
Yet the economy held firm. Spending was solid. Sure there were the signs that a lot of that spending was being done by a very small section of consumers, but as far as worst case scenario, it seems the recession had been narrowly avoided once again. Still, how healthy can an economy be if it’s bifurcated by pain and plenty?
CI pulled through, as well. In the latter half of 2025, business surged, and a State of the Industry panel at the 2025 CEDIA Expo saw business on the come up. The problem? It appeared it was mostly focused in a small area of the industry, much like the broader U.S. economy at the time.
Since then, reports like D-Tool’s Year in Review and CE Pro’s State of the Industry have pulled back the veil on things. While most integrators found their revenue either continuing to grow or leveling off, roughly a fifth of the industry saw losses (a sizeable portion more than 20%). That still poses a concern depending on how you want to look at an economy.
The fact is, we’re living in a time where a handful of successes are propping up fields of losses (Mag 7 anyone?), and while that’s common (the success of the S&P as an index has always hinged more on top performers as opposed to broader industry success) it does I think reveal a level of concentration beginning to form within CI.
After all, this revelation comes after two back-to-back years of strong M&A activity within the industry, so I think to say consolidation isn’t at least somewhat at play risks burying the lead here.
1. CI’s Silent K
Source: CI May Be Developing Its Own K-Shaped Economy (and the Cause Isn’t Clear)
As the effects of tariffs have started to show up on balance sheets, D-Tools Year-in-Review Report for founds that outsized gains at the top end of the industry may be masking losses elsewhere.
The industry seemed to grow its sales by 18.8% on average in 2025, but data unveiled that beneath that average, a sizeable portion of the industry saw staggering losses, masked only by the outsized gains seen at the opposite end.
While 35% of firms posted gains of 51% or more, 20% reported losses of over 21%.
Though not as extreme, CE Pro’s State of the Industry survey for 2026 revealed a similar concentration of firms posting losses for the year. It is worth noting that the State of the Industry data is gathered by survey participation, while D-Tools’s report pulls from D-Tools user data.
2. Wermuth Makes His Return with Video Walls
Source: DreamWall Enters CI Channel with WAVE Electronics Founder Gary Wermuth at Helm
Run by the founder and former owner/CEO of WAVE Electronics, Gary Wermuth, DreamWall has announced its entry into the CI channel riding the popularity of microLED video walls building across projects.
Launched in 2025, DreamWall specializes in large-scale, direct-view video wall systems leveraging Chip-on-Board (COB) design within its proprietary CooLED architecture. The architecture, as the name suggests, is designed to address one of the biggest issues behind video wall technology: heat output.
Wermuth may come as a familiar name to many within CI as founder and former owner/CEO of WAVE Electronics. During his time at WAVE, Wermuth built the company into one of the largest and most respected custom integration distributors in the United States before its 2018 acquisition by Kingswood Capital Management, parent company of AVAD.
3. When ‘Staying Put’ Means Growing Business
Source: Is the “Stay Put” Economy Creating New Opportunities for Integrators?
The decision to move or remodel is playing out nationwide, with data showing retrofit projects are becoming a big part of custom integration once again.
According to Bill Darcy, Global President and CEO of the NKBA, the effect of “Golden Handcuff” mortgage rates is proving to be driving remodel trends as 73% of borrowers on projects have interest rates currently below 5%.
Repair and remodeling is forecast to increase by nearly 3% this year, and professional renovations will rise 4.4%. Meanwhile, single-family new construction will decline nearly 4% based on NKBA research.
While retrofit projects tend to be more complex from a design and installation standpoint, they also open the door to system upgrades, service contracts, and long-term client relationships, still giving them a strong value proposition for integrators.
4. Samsung Unveils Full Micro RGB Lineup for 2026
Source: Samsung Unveils Full Micro RGB TV Lineup With Variety of Sizes
Samsung announced its 2026 Micro RGB TV lineup on Tuesday, introducing a new display architecture built around independently emitting red, green, and blue LEDs.
At a press event at Samsung’s U.S. headquarters last month, company representatives positioned its Micro RGB technology as a fundamental shift in how TVs produce color, expanding the platform beyond last year’s 115-inch model into a full lineup ranging from 55 to 115 inches.
The company first introduced its Micro RGB TV last year, but only the 115-inch model which debuted at just under $30,000.
Samsung’s Micro RGB launch comes as RGB-based display technologies continue to gain traction across the premium TV market, with multiple manufacturers exploring alternatives to OLED and traditional LED-backlit LCD.
5. CE Pro Releases Its Outdoor Technology Report
Source: 2026 CE Pro Outdoor Technology Deep Dive
CE Pro’s 2026 Outdoor Technology Deep Dive reveals a category that is expanding in both scope and scale.
From audio and video to networking, security, and lighting, today’s outdoor projects are evolving into fully integrated environments designed to extend the home beyond its walls.
Nearly half of integrators report increased outdoor installation volume, with most expecting continued growth into 2026.
What’s driving this momentum? Homeowners are placing greater value on outdoor living, treating patios, backyards, and landscapes as intentional spaces for entertainment, relaxation, and everyday use.
The Week in Playback is CE Pro’s weekly news segment recapping the top five news stories from across the custom integration (CI) and smart home industries, focusing on recent and breaking stories ranked on importance and interest to the professional install channel.
