CE Pro January 2022 - 30

OPERATIONS
State of the Industry
2021 Incomplete Projects Due
to Supply Chain Woes
26+
14%
11 to 25
17%
8 to 10
14%
2 to 4
30%
5 to 7
22%
The median number of incompleted projects in 2021 was six.
Amazingly, 3% of CE pros report that EVERY project they
started in 2021 was not able to be completed due to lack of
product supply. But 25% of integrators fi nished every job.
Primary Business Location in 2021
Home Offi ce/ Use
as Showroom
Commercial
Offi ce with
Retail
Showroom
18%
15%
Commercial
Offi ce with
AppointmentOnly
Showroom
8%
Home
Offi ce,
No Showroom
31%
Commercial
Offi ce,
No Showroom
28%
In total, 39% of integration companies work out of a home
offi ce of some type.
Sources of Recurring Revenue in 2021
1. Service Contracts (2% of total revenue)
2. Security Monitoring (1% of total revenue)
3. Commercial Remote Managed Services (1% of total revenue)
4. Remote Power Management (1% of total revenue)
5. Remote Cloud AV/Security Storage (0.5% of total revenue)
6. Other (1% of total revenue)
In all, dealers report earning 6.5% of their total revenue from
recurring monthly fees in 2021. That is down from the past few
years, presumably because dealers are taking higher-priced
projects enabling them to earn a higher percentage of their
revenue from the design, programming and installation.
30 | CE Pro January 2022
1 19%
tial plus 10 commercial).
Presumably, CE pros have
collected some revenue from
those jobs, whether it be the
upfront equipment money
and/or in-progress payments.
But even if the outstanding
revenue is only a small
holdback fee, it represents
unrealized revenue in 2021
which would have made the
growth rate even higher. The
survey did not delve into the
specifi c dollar amounts still
outstanding.
Amazingly, 3% of integrators
reported that EVERY
project they worked on in
2021 was not able to be fully
completed due to supply
chain problems. On the fl ip
side, 25% of integrators said
they were able to complete
100% of their projects in 2021.
Drilling down into the
commercial work, dealers
report doing a median of
10 commercial/resimercial
projects in 2021. That is one
fewer than last year. The
data reveals that perhaps the
corporate, hospitality (hotel/
bar/restaurant), retail, and
house of worship vertical
markets are still suff ering
some lingering eff ects from
the pandemic. More consumers
are certainly traveling
and dining out than they
Heading in
2022, dealers
are predicting
double-digit
revenue gains of
11.6%. Also, 10% of
integrators expect
to grow revenues
by more than 50%
in 2022.
did in 2020, but commercial
owners still might be watching
their pocketbooks versus
laying out cash for upgrades.
Meanwhile, the work from
home (WFH) trend continues,
meaning many corporate
offi ces remain partially
empty, reducing demand.
Similar to the trend in the
residential market, integra2022
Revenue Outlook
Down 11%+ 3%
Up 51% or more
Down 1%
to 10%
4%
10%
Flat
15%
Up 1%
to 10%
26%
17%
Integrators expect to increase revenues by a median 11.6%
in 2022.
Up 21%
to 49%
25%
Up 11%
to 20%
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CE Pro January 2022

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