U.S. Electronic Systems Contractors optimistic about business prospects in 2010

Seventy-five percent expect sales to improve in 2010

On average, U.S. home systems integrators, who have had revenues fall for the past two years, expect sales to pick up by more than 9% in 2010 over 2009, according to Home Systems: Channel and Consumer Monitor.

This report includes results of a fourth -quarter 2009 survey of integrators installing home controls, entertainment systems, and energy management solutions, conducted as a joint effort from international research firm Parks Associates and the Custom Electronic Design & Installation Association (CEDIA).

"Many integrators made adjustments in 2009 to compensate for challenging business conditions," said Bill Ablondi, director, home systems research, Parks Associates. "Overall sales declined 4% last year, but one in three integrators reported an increase in business. Many of these firms diversified their offerings, focused on retrofit and upgrade opportunities, hired more sales staff, and enhanced customer support."

Home Systems: Channel and Consumer Monitor reports that integrators continue to generate two -thirds of their revenue from A/V systems but many integrators plan to diversity in 2010 by adding lighting controls and solar panels to their 2010 offerings. Approximately 40% of integrators plan to begin installing photovoltaic solar panels, and another 38% are seeking more information on this product category to determine its viability. In addition, the trend toward more retrofit projects, which accounted for 63% of 2009 revenues, will continue.

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"CEDIA is diligently researching and developing education content to help our members understand and benefit from new business opportunities, including sustainable lifestyle systems, retrofit, and 3D technology, to name a few," said Utz Baldwin, CEO, CEDIA. "Currently, information is readily available to members and non -members through CEDIA's Power Hour Webinar Series, which focus on specific business opportunities and strategies each month."

"Most integrators are willing to make significant changes to move with the market," Ablondi said. "One area that ESCs need to explore further is selling service programs or contracts, which is currently a small portion of the typical firm's revenue."

For more information on Home Systems: Channel and Consumer Monitor, contact sales@parksassociates.com, 972 -490 -1113, or visit http://www.parksassociates.com.

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com


CEDIA is an international trade association of companies that specialize in designing and installing electronic systems for the home. The association was founded in September 1989 and has more than 3,500 member companies worldwide. CEDIA Members are established and insured businesses with bona fide qualifications and experience in this specialized field. For more information on CEDIA, visit the association's Website at www.cedia.org.

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