CE Pro May 2021 - 44

RESIMERCIAL
Biggest Commercial
Market Challenges

1. Competitive Bidding
2. Maintaining Cash Flow
3. Tight Installation
Timeframes
4. Odd-ball Installation
Hours
5. Finding Adequate
Manpower
6. Working with
Inadequate or
Restrictive RFPs
7. Tying Up Manpower
on Big Project
8. Lacking Training on
Commercial Gear

Commercial Market
Grind in 2020
As noted, dealers reported
their overall commercial
business fell 17% in 2020. For
2021, they expect to install
a median of seven projects
for $16,406 each. Nearly two
out of every three integrators
(64%) had a drop in their
commercial market revenues
last year, while another 16%
were flat. That means eight
out of every 10 integrators
did not see their commercial
business rise last year, which
is to be expected given the

In the residential space, integrators are not generally
responding to an RFP and engaging in a competitive
bidding process, so it is not surprising they find that to
be the biggest challenge in commercial work.

commercial vertical markets
in which integrators are
involved. More than half of
dealers (51%) install systems
in bars and restaurants, half
(50%) work in corporate
boardrooms, and 39% work in
retail. Other leading vertical
markets are healthcare (37%
of dealers), education (35%),
and houses of worship (30%).
The most common equipment installed in commercial
facilities are TVs/displays/
monitors and mounts, audio
equipment, video surveillance cameras, and video

pandemic. Nearly one in four
dealers (23%) report that
their commercial business
tanked by 50% or more. Another 18% experienced a drop
between 25% and 50%.
But despite the declines,
optimism abounds as integrators expect to see a 9%
rise in their commercial work
over the next five years. One
in five dealers (20%) expects
to see very strong growth of
more than 21%, while one in
four is expecting double-digit growth through 2025.
There are several key

2021 Vertical Commercial Markets
(Percent of Integrators Expecting to Work In)
Bars, Clubs, Restaurants 51%
Corporate 50%
Retail 39%

Commercial Business in 2020 vs. 2019
Down 50%+
24%
Down 21% to 49%
18%
Down 11% to 20%
12%
Down 6% to 10%
8%
Down 1% to 5%
4%
Flat
16%
Up 1% to 5%
5%
Up 6% to 20%
10%
Up 11%+
3%
The median decline commercial business for a CE pro in 2020
was 17.6%. However, dealers anticipate their commercial business to grow 9% over the next five years.

44 | CE Pro May 2021

C2105 pp38-51 Resimercial DD.indd 44

Healthcare 37%
Educational 35%
Houses of Worship 30%
Hotels 28%
MDUs 21%
Large Venue Entertainment 22%
Government 17%
Live Music Venues 14%
Transportation 13%
Light commercial
installations of displays,
audio, lighting and
networking in the
hospitality sector are
the most common
vertical market in
which CE pros expect
to work in 2021.

cepro.com

4/6/21 2:34 PM



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CE Pro May 2021

Table of Contents for the Digital Edition of CE Pro May 2021

CE Pro May 2021 - Presentation
CE Pro May 2021 - Cover1
CE Pro May 2021 - Cover2
CE Pro May 2021 - 1
CE Pro May 2021 - 2
CE Pro May 2021 - 3
CE Pro May 2021 - 4
CE Pro May 2021 - 5
CE Pro May 2021 - 6
CE Pro May 2021 - 7
CE Pro May 2021 - 8
CE Pro May 2021 - 9
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CE Pro May 2021 - Cover3
CE Pro May 2021 - Cover4
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