CE Pro January 2023 - 32

RESEARCH
State of the Industry
Selection
2022 Purchasing Sources
Retailers
19%
Online
Retailers
15%
Distributors
30%
The percentage of equipment purchased directly continued
a freefall trend that began last year as integrators
scrambled to find new sources for components that were
unavailable due to the supply chain crisis. More dealers
were forced to purchase from retail sources just to get the
equipment they needed.
36%
2022 Purchasing Sources
Manufacturer
Direct
with 15% saying they were
able to get all the gear they
needed and complete every
job. On the flip side, 6% of
dealers said they experienced
product shortages on
every project in 2022.
When asked to gauge the
current state of the supply
chain compared to one year
ago, 92% of dealers said
they were still feeling the
pain from lack of equipment.
About half (48%) said
they were still experiencing
sporadic shortages on certain
brands, while over onethird
(38%) characterized
the supply chain situation
as " horrible but improving. "
A handful of dealers (6%)
said the situation was " still
horrible. "
As mentioned, dealers report
deriving 12% of revenues
from RMR sources. Where is
it coming from? By far, security
monitoring remains the
No. 1 source of RMR among
custom integrators, followed
by remote power management
(charging clients for the
ability to remotely reboot
the system using OvrC or
other platform).
Service agreements are
the third-most-common
form of RMR, while remote
cloud video storage
is the next most common.
The proliferation of video
doorbells certainly is a major
contributor to the growth of
that RMR segment. Lastly,
commercial remote managed
services is the fifth most
common form of RMR.
The bottom line is that
the gross amount of RMR
custom integrators earned
nearly tripled compared to
last year. In 2022, dealers
brought in a median of
$260,051 in annual recurring
revenue, or a whopping
$21,670 per month. That is
compared to just $8,742 per
month in 2021.
Looking at the market
segments in which CE pros
2022 Commercial Vertical Markets
(Percentage of Integrators Working In)
Top 10 Biggest Challenges for 2023
58%
1. Labor Shortage
2. Supply Chain
3. Economy Slowdown
4. Unprofessionalism/Trunkslammers Hurting
Industry Reputation
5. Rising Labor Costs
6. Manufacturer Consolidation/Fewer Product Choices
7. Security Dealers Encroaching
8. Inflation
9. DIY Products
10. Electricians Encroaching in Custom Electronics
The lack of skilled labor is once again the biggest challenge
dealers say they are facing, supplanting the supply chain
crisis, which was the dominant problem in 2021. The top
three challenges - labor shortage, supply chain and the
economy - far outweighed all the others.
32 | CE Pro January 2023
54%
40%
31%
31%
27%
17%
14%
Corporate/Office
Bars/Restaurants
Hospitality/Hotel
Houses of Worship
Education (K-12 + Higher Ed)
Retail
Large Commercial/Industrial
Government
Despite commercial office spaces being hit hard by the
Work From Home trend, that market is still the most
common vertical niche served by CE pros.
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CE Pro January 2023

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