CE Pro January 2022 - 28

OPERATIONS | State of the Industry
Unfinished
BUSINESS
Integrators sustain 7.6% revenue growth in 2021 despite
being unable to complete 13% of their projects due to
labor and product shortages. By Jason Knott
BEETHOVEN'S
FAMED " unfinished "
Symphony No. 10 was never
completed, but it's still
considered a masterpiece.
Like Beethoven, custom
integrators have some
unfinished masterpieces of
their own. On average,
integrators report being
unable to complete 13% of
their projects in 2021 due to
supply chain shortages,
lingering pandemic-induced
hesitancy from some clients,
and an extreme lack of
manpower. Yet, despite all
that turmoil, the custom
electronics industry still
managed to grow a healthy
7.6% in 2021.
That growth rate is one
of the key results from the
exclusive CE Pro 2021 State
of the Industry Survey conducted
in November 2021. In
all, the survey garnered 346
responses from the CE Pro
Number of Employees
One (self-employed)
11%
31+
29%
21 to 30
7%
11 to 20
10% 8 to 10
11%
2 to 4
19%
14%
5 to 7
The market is maturing. The median number of employees
remained the same in 2021 as 2020 with 13.
Examining Revenue
Sources for 2021
In all, 73% of dealers' 2021
revenue comes from the residential
side of the business,
while 20.5% of revenue
comes from commercial work
28 | CE Pro January 2022
dealer readership.
Breaking down some of
the primary data points, the
median custom integration
company earned a total
median revenue of $1,467,581
in 2021. As noted, that
represents a 7.6% rise over
last year's $1,363,363 total
revenue figure.
Heading into 2021, dealers
were predicting to boost
revenues by 9.8%, so the
7.6% gain falls just short of
that prediction; however, it
should be noted that dealers
routinely anticipate higher
gains than they actually
achieve every year. Meanwhile,
the 7.6% increase
in 2021 represents slower
growth when compared with
2020's surprising growth
rate of 11.5% in the midst of
the pandemic.
or crossover " resimercial "
work. The remaining 6.5% of
income comes via recurring
monthly revenue (RMR)
sources such as security
monitoring, service agreements,
remote managed
services, cloud-storage fees
and more.
Looking solely at the
residential statistics, integrators
performed a median
of 37 residential projects in
2020. That is down from 55
residential installations in
2020; however, the median
price point for a resi project
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CE Pro January 2022

Table of Contents for the Digital Edition of CE Pro January 2022

CE Pro January 2022 - Intro
CE Pro January 2022 - Cover1
CE Pro January 2022 - Cover2
CE Pro January 2022 - 1
CE Pro January 2022 - 2
CE Pro January 2022 - 3
CE Pro January 2022 - 4
CE Pro January 2022 - 5
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CE Pro January 2022 - Cover3
CE Pro January 2022 - Cover4
https://www.nxtbook.com/emerald/cepro/november_2022
https://www.nxtbook.com/emerald/cepro/october_2022
https://www.nxtbook.com/emerald/cepro/september_2022
https://www.nxtbook.com/emerald/cepro/august_2022
https://www.nxtbook.com/emerald/cepro/july_2022
https://www.nxtbook.com/emerald/cepro/june_2022
https://www.nxtbook.com/emerald/cepro/may_2022
https://www.nxtbook.com/emerald/cepro/april_2022
https://www.nxtbook.com/emerald/cepro/march_2022
https://www.nxtbook.com/emerald/cepro/february_2022
https://www.nxtbook.com/emerald/cepro/january_2022
https://www.nxtbook.com/emerald/cepro/december_2021
https://www.nxtbook.com/emerald/cepro/november_2021
https://www.nxtbook.com/emerald/cepro/october_2021
https://www.nxtbook.com/emerald/cepro/september_2021
https://www.nxtbook.com/emerald/cepro/august_2021
https://www.nxtbook.com/emerald/cepro/july_2021
https://www.nxtbook.com/emerald/cepro/june_2021
https://www.nxtbook.com/emerald/cepro/may_2021
https://www.nxtbook.com/emerald/cepro/cepro_april_2021
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