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CEDIA: Benchmarking Survey Takes Snapshot of Electronic Systems Industry (31/8/2010)

Results indicate how electronic systems contractors are adapting in current economic climate

The Custom Electronic Design & Installation Association (CEDIA) has released key findings from its 2010 Benchmarking Survey, which evaluates the state of the electronic systems industry for calendar year 2009. Results from the survey indicate that while the economic downturn has had a significant effect on industry businesses, certain types of companies have found strategies for adapting their operations to the changes in the market.

The survey report provides detailed benchmarks, best practices, and trend analysis based on data collected from CEDIA member electronic systems contractor (ESC) companies. The data represents company information in such categories as strategic and business planning, financial performance and management, operations, and staffing and compensation. The results of the 2010 survey, which measures data from business operations in 2009, are compared against results from the 2008 survey, which measured 2007 data. This year’s results indicate that gross margin rose 7% from 2007 to 2009. However, average net profit margin dropped from 6.8% to 3.5% and average staffing levels for field technicians declined by 24%. Results also indicate that average project size declined only slightly from the 2007 level to $32,000, and overall employment fell by less than 5%.

Respondents indicated that their largest two product segments continue to be home theaters/media rooms and distributed audio/video, as in 2007. The survey results show that average company revenue was $1,107,000.

“With the uphill battles ESCs are facing in this economic climate, CEDIA is providing vital research data and education that can help business owners make strategic decisions for their companies and their clients,” said CEDIA CEO Utz Baldwin. “CEDIA’s Benchmarking Survey is an invaluable tool for companies looking to see how they measure up in comparison to their peers.”

The CEDIA Benchmarking Survey is designed to provide external references and best practices that will help ESCs evaluate and improve their business operations. The survey results also help manufacturers, distributors, sales representatives, consultants, analysts, and observers assess the state of the electronic systems market and analyze opportunities for growth and development.

The full Benchmarking Survey report, conducted by independent research firm Brand Ubiquity, will be made available free of charge to the CEDIA members who participated in the survey. The survey is available for purchase through the CEDIA Marketplace at a rate of $1,495 for non-participating CEDIA members and $2,995 for non-members. A 10% discount is available on orders placed before Sept. 26.

www.cedia.net/marketplace