CE Pro January 2023 - 26

RESEARCH | State of the Industry
Tapping
the Brakes
ON THE
JOY RIDE
Integrators sustain incredible
33% revenue growth in 2022 but
anticipate slower 6.5% revenue
gains in 2023, per the latest CE Pro
State of the Industry Study.
By Jason Knott
AFTER DRIVING
their custom
installation companies
with the pedal to the
proverbial metal for the
past two years, integrators
are about to gently tap on
the brakes from this
amazing joyride as they
approach 2023 with
cautious optimism. The
average CE pro integration
fi rm experienced an
incredible 33% revenue
growth to a median of
$2,167,291, according to
the 2023 CE Pro State of
the Industry Study, with
hot new categories like
lighting fi xtures and a
renewed focus on recur26
| CE Pro January 2023
ring monthly revenue
(RMR) leading the way.
The tremendous growth
rate was not unexpected.
Indeed, in last year's research,
dealers optimistically
predicted their revenues
would leap double-digits
(11.6%) in 2022. It turns out
they were underestimating
the continued strength of
the post-COVID market
that manages to thrive in
face of labor shortages,
supply chain problems and
infl ation.
Along with our integrator
research, heading into 2023,
each of the buying groups
off ered their outlook for the
coming year during a special
State of the Industry panel
at CEDIA Expo moderated
by CE Pro (see sidebar).
The Good: Installations,
Revenue & RMR
Nearly all the key metrics for
integrators in 2022 were up,
including average installation
price, average number of residential
installations, average
commercial installation price,
and perhaps most importantly,
the percentage of
income derived from RMR.
Residential Installations
Increase - The
total number of residential
installations in 2022 took
off , leaping from 37 in 2021
to a median of 50 in 2022.
That is a 35% increase. The
lift in the number of projects
is not surprising given the
high demand that integrators
have witnessed for the
past several years. As dealers
become more effi cient and
equipment becomes more
intelligent, the time it takes
to deploy certain technologies
is reduced. That allows
dealers to squeeze in more
jobs on the schedule, which
is what happened in 2022.
Residential Project Prices
Rise - Dealers continue
to eschew the low-end of
the market, instead fi lling
the consistent demand for
higher-end systems. The
median price of a residential
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CE Pro January 2023

Table of Contents for the Digital Edition of CE Pro January 2023

CE Pro January 2023 - Intro
CE Pro January 2023 - Cover1
CE Pro January 2023 - Cover2
CE Pro January 2023 - 1
CE Pro January 2023 - 2
CE Pro January 2023 - 3
CE Pro January 2023 - 4
CE Pro January 2023 - 5
CE Pro January 2023 - 6
CE Pro January 2023 - 7
CE Pro January 2023 - 8
CE Pro January 2023 - 9
CE Pro January 2023 - 10
CE Pro January 2023 - 11
CE Pro January 2023 - 12
CE Pro January 2023 - 13
CE Pro January 2023 - 14
CE Pro January 2023 - 15
CE Pro January 2023 - 16
CE Pro January 2023 - 17
CE Pro January 2023 - 18
CE Pro January 2023 - 19
CE Pro January 2023 - 20
CE Pro January 2023 - 21
CE Pro January 2023 - 22
CE Pro January 2023 - 23
CE Pro January 2023 - 24
CE Pro January 2023 - 25
CE Pro January 2023 - 26
CE Pro January 2023 - 27
CE Pro January 2023 - 28
CE Pro January 2023 - 29
CE Pro January 2023 - 30
CE Pro January 2023 - 31
CE Pro January 2023 - 32
CE Pro January 2023 - 33
CE Pro January 2023 - 34
CE Pro January 2023 - 35
CE Pro January 2023 - 36
CE Pro January 2023 - 37
CE Pro January 2023 - 38
CE Pro January 2023 - 39
CE Pro January 2023 - 40
CE Pro January 2023 - 41
CE Pro January 2023 - 42
CE Pro January 2023 - 43
CE Pro January 2023 - 44
CE Pro January 2023 - 45
CE Pro January 2023 - 46
CE Pro January 2023 - 47
CE Pro January 2023 - 48
CE Pro January 2023 - 49
CE Pro January 2023 - 50
CE Pro January 2023 - 51
CE Pro January 2023 - 52
CE Pro January 2023 - 53
CE Pro January 2023 - 54
CE Pro January 2023 - 55
CE Pro January 2023 - 56
CE Pro January 2023 - 57
CE Pro January 2023 - 58
CE Pro January 2023 - 59
CE Pro January 2023 - 60
CE Pro January 2023 - 61
CE Pro January 2023 - 62
CE Pro January 2023 - 63
CE Pro January 2023 - 64
CE Pro January 2023 - Cover3
CE Pro January 2023 - Cover4
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