CEDIA US Benchmarking Survey Finds Home Technology Professional Companies are Experiencing Strong Growth

AUTHOR: HiddenWires

The Benchmarking Survey is open to Home Technology Professional companies (installation firms) in the US & Canada only. Participants DO N...

The Benchmarking Survey is open to Home Technology Professional companies (installation firms) in the US & Canada only. Participants DO NOT have to be CEDIA members. The Custom Electronic Design & Installation Association (CEDIA) has released key findings from its 2014 Benchmarking Survey, which evaluates the state of the home technology professional company performance for calendar year 2013 and reports on 2014 expectations. Results find home technology professional companies experienced strong growth in 2013 over 2012, focusing on selling more upgrades/add-ons and expanding services/technical offerings. Maybe the best news from the report was that the median operating profit margin increased from 3.5% in 2012 to 6% in 2013. The median annual gross revenue for 2013 was $1,234,221, a 22% increase over 2012 for these respondents. Employee productivity increased in 2013 too with revenue/employee increasing from $145,950 in 2012 to $166,675 in 2013. While operational efficiency has historically been a huge profit prohibitor for home technology professionals, companies saw an improvement from 33.2% of revenue in 2012 to 30.7% in 2013. Number of projects and project size increased in 2013 over 2012 as well. Median number of projects increased from 57 in 2012 to 69 in 2013. Median project size increased from $10,168 in 2012 to $11,892 in 2013. The percentage of firms offering recurring revenue services increased from 37.5% in 2012 to 43.5% in 2013. More importantly, of the firms that do offer these services, their median number of sold agreements doubled in 2013 with a median of 20 sold in 2012 to 40 in 2013. "We are seeing that 2013 ended on an incredibly positive note with great growth in projects, revenue, and most importantly operating profits, said Erica Shonkwiler, CEDIA Senior Director of Research. In addition, home technology professional owners are projecting an additional 10% revenue growth in 2014, a conservative and realistic expectation.” The survey report, provides detailed benchmarks, best practices, and trend analysis based on data collected from home technology professional companies. All survey participants received a customized report comparing their company to similar size companies, the industry median, and the most profitable industry companies. This custom report also includes a suggested action plan for increasing profitability and trending analysis for participants of more than one year. The estimated value of this custom analysis is $2,500. Also, a condensed version of the report is available for free for all CEDIA members as a membership benefit. The full survey report is available for purchase through the CEDIA Research Library at a rate of $500 members / $1,000 non-members. CEDIA members and participants also have the opportunity of attending the CEDIA 2014 Benchmarking Survey: Profitability Action Plan education sessions exclusively and for free: PART I - WEBINAR: August 5th,12-1PM ET, register here. PART II - IN-PERSON WORKSHOP: CEDIA EXPO, September 12th,12:30-2:30PM MT, register for EXPO here. For more information about the CEDIA Benchmarking Surveys and member report access, visit: www.cedia.net/benchmarking