CEDIA’s 2008 Benchmarking Survey Reveals Positive Findings For Residential Electronic System Contractors

An independent survey of CEDIA Members reveals increased profits and a growing demand for systems integration and lighting control [The following is a release from the Custom Electronic Design And Installation Association]

September 19, 2008

The Custom Electronic Design & Installation Association (CEDIA) released key statistics from its second annual Benchmarking Survey. The report shows that 72 percent of residential electronic systems contractors that participated in the survey experienced increased revenue from 2006 fiscal year to 2007 fiscal year. Also, those companies that reported 1 – 14 percent profit margins had both the highest average revenue and the most CEDIA Certified employees. CEDIA’s Benchmarking Survey also shows that while distributed audio and visual as well as home theaters and media rooms are the top revenue sources, those companies with larger annual revenue are seeing tremendous consumer demand in systems integration and lighting control. “The wealth of data collected in the 2008 Benchmarking Survey suggests a wide variation in how electronic systems contractors businesses are managed,” said Ray Lepper, CEDIA’s industry best practices chair. “These findings are crucial to all CEDIA members businesses and CEDIA as an organization to establish best practices for running a solid business in the electronic systems integration industry.” Of the survey respondents, 60 percent have a showroom and 89 percent of companies with 2 million or more in revenue have a showroom. Ninety-one (91) percent of companies with a showroom feel it establishes credibility with potential clients and over half believe a showroom is worth the investment. While existing clients and home builders are the top two sources of referrals for survey respondents, those with the highest revenues and largest project sizes are putting greater focus on marketing and receiving more business from architects. The survey also reveals that 75 percent of referrals yield actual business. The full Benchmarking Survey report, conducted by an independent research firm Brand Ubiquity, will be made available for free only to the CEDIA Members who participated. These participants will also be able to discuss and collaborate on these findings at CEDIA EXPO in order to help them learn how to apply this information to improve their businesses.

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