CE Pro January 2022 - 32

OPERATIONS
State of the Industry
2021 Influence on Brand Selection
(Percentage of Projects with " Final Say " )
Consultant/
Specifi er
9%
Builder
11%
Architect
Interior
Designer
10%
9%
Integrator
33%
Homeowner
28%
Integrators have the biggest infl uence on the fi nal product
selection, but there is growing acceptance for input from many
parties involved on a project, especially the homeowner.
2021 Expenditures by Product Category
$78,725
Security
$94,975
$112,500
$97,475
This data represents
the end-user cost
of products that
dealers purchased
in 2021 by broad
equipment category.
2021 Profit Margins
32%
29%
28%
26%
22%
Installation Labor
Service Labor
Programming Labor
Equipment
Design Labor
Probably the most alarming statistic from this year's survey is
the across-the-board drop in profi t margins in every category.
32 | CE Pro January 2022
Networking/Communications
Home Theater/Video
$119,240
Audio
Home Automation/Controls
Top 10 Anticipated Growth Rates
by Technology for 2022
1. Surveillance Cameras 9.1%
2. 4K/8K TVs/Displays/Projectors 9%
3. Soundbars 7.4%
4. Home Theater 7%
5. Voice Control 6.7%
6. Outdoor Installations 6.4%
7. Video Distribution/AV-over-IP 6.4%
8. Smart Appliance Connectivity 6%
9. Lighting Fixtures 5%
10. Home Networks 4.3%
These are some of technology categories where integrators
expect strong growth in 2022. Video surveillance continues
to be a hot category. Home networks fell from the No. 1 spot
to No. 10. Just missing the top 10 list were high-performance
audio and remote managed services.
cloud-storage fees for video
surveillance, remote power
management, and other
services like cleaning and
cybersecurity.
Probably the most
alarming statistic from this
year's survey is the acrossthe-board
drop in profi t
margins in every category.
Dealers report earning 26%
profi t on their equipment in
2021. That is down from 37%
margin the previous year.
Why? It could be another
sign of the infl ux of consumer-brands
that do not off er
dealers the leeway to mark
up the product substantially.
At the same time - and
perhaps even more alarming
- margins for all types of
labor (installation, programming,
service and design) fell
in 2021. That is likely due to
the higher salaries and hourly
wages CE pros are being
forced to pay to attract
talent. If dealers did not
increase their labor rates to
account for the higher wages
or if there was lost productivity
due to new hires, then
the labor margin logically
would fall.
Heading into 2022, there
are still so many unknowns
with rising infl ation, lingering
coronavirus, continued
supply chain woes and the
ongoing labor situations.
But despite all that, integrators
remain an optimistic
bunch. They are predicting
a double-digit increase in
revenue of 11.6% in 2022.
That optimism has been a
long-standing tendency. Even
in the depths of the housing
crisis in 2007 through 2010
when some custom integrators
lost half their revenues,
they were predicting positive
revenue increases. Speaking
of optimism, 10% of integration
companies expect to
grow revenues by more than
50% in 2022.
Still Cottage Industry,
But Maturing
The custom electronics
industry remains solidly a
home-based business for a
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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
CE Pro January 2022 - 6
CE Pro January 2022 - 7
CE Pro January 2022 - 8
CE Pro January 2022 - 9
CE Pro January 2022 - 10
CE Pro January 2022 - 11
CE Pro January 2022 - 12
CE Pro January 2022 - 13
CE Pro January 2022 - 14
CE Pro January 2022 - 15
CE Pro January 2022 - 16
CE Pro January 2022 - 17
CE Pro January 2022 - 18
CE Pro January 2022 - 19
CE Pro January 2022 - 20
CE Pro January 2022 - 21
CE Pro January 2022 - 22
CE Pro January 2022 - 23
CE Pro January 2022 - 24
CE Pro January 2022 - 25
CE Pro January 2022 - 26
CE Pro January 2022 - 27
CE Pro January 2022 - 28
CE Pro January 2022 - 29
CE Pro January 2022 - 30
CE Pro January 2022 - 31
CE Pro January 2022 - 32
CE Pro January 2022 - 33
CE Pro January 2022 - 34
CE Pro January 2022 - 35
CE Pro January 2022 - 36
CE Pro January 2022 - 37
CE Pro January 2022 - 38
CE Pro January 2022 - 39
CE Pro January 2022 - 40
CE Pro January 2022 - 41
CE Pro January 2022 - 42
CE Pro January 2022 - 43
CE Pro January 2022 - 44
CE Pro January 2022 - 45
CE Pro January 2022 - 46
CE Pro January 2022 - 47
CE Pro January 2022 - 48
CE Pro January 2022 - 49
CE Pro January 2022 - 50
CE Pro January 2022 - 51
CE Pro January 2022 - 52
CE Pro January 2022 - 53
CE Pro January 2022 - 54
CE Pro January 2022 - 55
CE Pro January 2022 - 56
CE Pro January 2022 - 57
CE Pro January 2022 - 58
CE Pro January 2022 - 59
CE Pro January 2022 - 60
CE Pro January 2022 - 61
CE Pro January 2022 - 62
CE Pro January 2022 - 63
CE Pro January 2022 - 64
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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