Q1 2020
AWARD WINNING INNOVATION CEDIA’S STRATEGIC PLAN IN ACTION LIGHTING FOR HEALTH
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CONTENTS
AM CEDIA 16 IRichard Colman, Luxe Smart Homes
Road 20 Coral A CEDIA Award-winning home cinema
Awards 28 CEDIA How to market your win
it in Writing 40 Get The importance of documentation
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CEDIA Board Meet the new CEDIA Board of Directors
Your Profit 31 Increase What's hiding in your profit column?
Year for the Books 10 A CEDIA's strategic successes in 2019
On! 34 Game Opportunities that gaming can offer
Screens & Man Caves 24 Big An award-winning showroom from
Audio 36 Immersive A look at Dolby Atmos Music
Atlanta Audio & Automation
CEDIA COMMUNICATES
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A NEW LOOK Welcome! You’ve likely noticed that CEDIA Communicates seems a bit different this issue. We’ve given the publication something of a facelift — after all, while the world rings in 2020, CEDIA has begun its fourth decade of existence. We thought it was a perfect time for a new look. What hasn’t changed? The quality of the articles inside, and the incredible amount of information that you’ll find useful in your business. The notion of a new look extends well beyond Communicates as we begin 2020. You’ve heard quite a bit about the strategic plan that CEDIA’s implementing, I’m sure. To that end, all of our digital touchpoints are getting a makeover too.
CONTACT 8475 Nightfall Lane, Fishers, Indiana 46037 USA Email: info@cedia.org Telephone: +1 800.669.5329 Unit 2, Phoenix Park, St Neots Cambridgeshire, PE19 8EP, UK Email: info@cedia.co.uk Telephone: +44 (0)1480 213744 www.cedia.net
SOCIAL
Stay tuned for updates as we prepare to roll out the new CEDIA website. Actually, it’s becoming much more than a “website,” really — it’s a way to access all of your resources as a valued member. From a revamped educational platform to a place where you can find our latest research, TCD updates, white papers, podcasts, and everything else, the new CEDIA.net will have it all covered. There are micro-sites linked to that location too: Have you seen our new Awards site? If you haven’t, I urge you to take a peek at cediaawards.org. And as 2020 progresses, you can stay up-to-date on everything we’re doing at cediastrategy.com. Thanks for reading — and, as always, thanks for being part of CEDIA. All the best,
FRONT COVER BNC Technology 16 Skeen Boulevard, Bedfordview, Johannesburg, 20070 Gauteng, South Africa
COPYRIGHT All material in Communicates is the copyright of CEDIA and any reproduction of said material would require written permission from the publisher. Although every effort is made to ensure the accuracy of content published, CEDIA cannot accept responsibility for any factual errors that may occur. CEDIA cannot accept responsibility for the veracity of claims made by contributors.
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Tabatha O’Connor CEDIA Global President and CEO
Essential To The Finest Home Cinema Experience 2019 CE Pro Brand Leader: Seating CinemaTech provides an exclusive opportunity to create a custom home cinema for your clients that is incredibly comfortable, maximizes the technology investment & reflects their unique tastes and desires. Speak to your CinemaTech team today and learn how, together, we can help create an extraordinary home cinema experience through our world-renowned design, legendary seating and acoustic solutions. Dallas | Los Angeles | Ft. Lauderdale www.mycinematech.com 972.381.1071
NEWS IN BRIEF Jenn McGuire to Lead CEDIA Global Member Services Department CEDIA has named Jenn McGuire global member services manager. The promotion elevates McGuire to the head of the global organization's membership department. She will remain based in the CEDIA EMEA office in the United Kingdom. “Jenn has been with the organization for four and a half years and brings a wealth of experience, knowledge, and excitement to the global member services manager position,” says CEDIA Managing Director of EMEA Matt Nimmons. “As the lead in the launch of our successful Member of Excellence program, Jenn's focus on providing the highest level of service to our members was on display.” McGuire joined CEDIA in 2015, initially focusing on outreach in the EMEA office. In her new role, McGuire's responsibilities include managing the global membership team and all of its initiatives.
Michael Sherman Named 2019 CEDIA Young Professional of the Year CEDIA has announced Michael Sherman as the recipient of the 2019 CEDIA Young Professional of the Year award. Sherman is the owner and director of Henri, a CEDIA Member of Excellence company based in France. The honor recognizes Sherman as an emerging leader who is making an impact on the home technology integration industry. The award is designed to elevate and celebrate the innovation and entrepreneurial spirit of industry professionals under the age of 40. “This honor highlights Michael's exceptional dedication to his craft and to the entire industry,” says CEDIA Global President and Chief Executive Officer Tabatha O'Connor. “Through his longtime CEDIA membership and contributions to highprofile roles like the EMEA Board of Directors and the Membership Advisory Council, Michael personifies the spirit of the award. The future of our global industry is brighter with Michael as a part of it.” Sherman joined Henri — a company founded by his grandfather in 1961 — more than a decade ago. The custom integrator has grown over the years to include offices in two cities, Paris and Cannes, and 40 employees. Henri has been a CEDIA member since 1999. Sherman was recently named Entrepreneur of the Year in the greater Paris area by the France Chamber of Artisans. Throughout his career and involvement with CEDIA, Sherman has championed the expansion of the association’s global presence. He has also served as a judge for the CEDIA Awards selection process.
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CEDIA Announces 2020 Dates for North America Technology & Business Summit Events CEDIA has released the 2020 dates for the North America CEDIA Technology and Business Summit events. Of the 14 scheduled events, Toronto and Vancouver will each host a date, marking the first time two Tech Summit events will take place in Canada. “CEDIA Tech Summits bring together all facets of the industry, taking a very personal approach to connecting and boosting business,” says CEDIA Senior Director of Sales, Sponsorships, and Partnerships Robert Keeler. “We took great care in selecting heavily-requested locations and spaces that will foster quality business-building and networking opportunities.” The Tech Summits are educational in nature and locally oriented, providing sponsor displays and demonstrations from many of the industry's top AV, control, lighting, security, and technology manufacturers and service providers. “These events serve as energetic hubs of interaction for reps, manufacturers, service providers, and integrators. The regional nature of the Tech Summits creates and builds the kind of connections that are vital to driving business,” CEDIA Tech Summit founder Mark Cichowski says.
The 2020 Tech Summit schedule includes: • March 12 - Vancouver, BC, Sheraton Vancouver Airport Hotel • March 31 - Woodland Hills, California, Marriott Warner Center • April 2 - Irvine, California, Irvine Marriott • April 14 - Dallas, Sheraton Dallas/Fort Worth Airport Hotel • April 16 - Houston, Hilton Houston Post Oak by the Galleria Hotel • May 14 - Toronto, Toronto Airport Marriott • September 24 - Chicago, Drury Lane Theatre and Conference Center • October 6 - New York, Marriott Melville Long Island • October 8 - New Jersey, Renaissance Newark Airport Hotel • October 27 - Boston, Sheraton Framingham Hotel & Conference Center • November 12 - Atlanta, Crowne Plaza Atlanta Perimeter at Ravinia Registration for all events is open now: techsummitevents.com. Dates for Australia and Mexico will be announced soon.
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EXECUTIVE COMMITTEE
MEET the
BOARD
Rob Sutherland Chairman Inspired Dwellings, Ltd. London, England
David Weinstein Chairman-Elect Lutron Electronics Co., Inc. Coopersburg, PA, US
As managing director and co-founder of Inspired Dwellings, Rob Sutherland has built his company and reputation through the smooth and transparent delivery of projects. With more than 20 years’ experience managing in the private sector and a comprehensive background in corporate IT, Sutherland has personal experience project managing extensive global infrastructure projects for large corporations (BP, BT, and M&S).
David Weinstein is Lutron’s vice president of residential sales, responsible for leading sales across the company’s consumer-facing channels. His work with Lutron included roles as senior sales manager, sales director, and sales vice president. Prior to Lutron, he was employed at Yusen Associates, where he rose from salesperson to president.
John Buchanan Treasurer Meridian Audio Limited Huntingdon, Cambridgeshire, UK
David Humphries Immediate Past Chairman Atlantic Integrated Rockleigh, NJ, US
Appointed CEO of Meridian Audio in 2014, Buchanan is an honors graduate of the University of Strathclyde and has 20-plus years of international business experience working with marketleading professional audio and consumer electronics companies. Buchanan is married with two daughters. His interests away from work include rugby, cycling, and golf.
Dave Humphries founded Atlantic Integrated in May 2003. His prior experience was with Lutron Electronics over a 15-year career. Humphries has served as CEDIA Chairman and Board Treasurer, is the past president of IPRO, and is a veteran of the United States Air Force.
After this year’s global elections, here’s your new CEDIA Board for 2020.
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BOARD DIRECTORS
Melanie Malcolm Secretary Bespoke Home Cinemas Leeds, Yorkshire, UK Melanie Malcolm is co-founder and co-owner of Bespoke Home Cinemas based in Leeds, Yorkshire, UK. In 2016, Malcolm was elected to the CEDIA EMEA Board, where she helped with CEDIA's global alignment process. An active volunteer, she has served in roles including Strategy Advisory Council (SAC) chair for global accessibility, chair of the Smart Home Apprenticeship Trailblazer Committee in the UK, and CEDIA Awards judge for the EMEA region.
Tabatha O'Connor Ex-Officio CEDIA Indianapolis, US Tabatha O’Connor has been with the association since 2002. Since joining CEDIA, she has led many departments, from membership, finance, and operations to human resources, and volunteer development. In 2016, she was chosen by Dealerscope as one of their Powerful Women in Consumer Tech. She became Global President and CEO in 2018. Tabatha serves as an ex-officio, voting member of the CEDIA Board by virtue of her position.
Peter Aylett Archimedia Dubai, UAE
Jamie Briesemeister Integration Controls St. Louis, Missouri, US
Peter Aylett has been in the industry for 28 years and currently serves as the president and CTO of Archimedia, which has been honored with five CEDIA Awards over the past four years. Aylett has been teaching on behalf of CEDIA for 19 years and served as the director of professional development in the CEDIA EMEA office from 2005 until 2011 when he joined Archimedia. Aylett’s was the recipient of CEDIA’s 2014 “Training Volunteer of the Year” award and was the 2015 EMEA “Special Recognition” award recipient. He is CEDIA ESC-D and ESC-N, ISF-, and HAA-certified.
An avid speaker, Jamie Briesemeister often participates in panel discussions, presenting informative sessions, or offering Continuing Education Units to architects and designers. She serves as an advocate for collaboration in the design/build process and has written for Connected Design and Residential Tech Today. Briesemeister is a CEDIA Outreach Instructor (COI), avid volunteer, member of the Industry Relations Advisory Council, and previous chair of the Professional Development Advisory Council.
Alex Capecelatro Josh.ai Denver, Colorado, US
Michael Cogbill ETC West Palm Beach, FL, US
Alex Capecelatro is the founder and CEO of Josh.ai, a voice-controlled home automation system with a focus on artificial intelligence. Capecelatro started his career as a research scientist for NASA, the Naval Research Lab, and later Sandia National Laboratory. He then ventured into consumer technology first with electric car manufacturer Fisker Automotive, then through founding two social software products "At the Pool" and "Yeti" with members in more than 120 countries.
Michael Cogbill is recognized internationally as an authority in the field of home automation and integrated home systems. His professional career spans over 40 years as an engineer, manager, and entrepreneur. Currently, he serves as VP of engineering at ETC, a leading technology integrator in South Florida. He has been with ETC since 2006. Throughout his varied engineering career, Michael has worked in defense and aerospace systems, founded two companies, and been a passionate advocate of CEDIA since the beginning. CEDIA COMMUNICATES
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BOARD DIRECTORS CONTINUED
MEET BOARD the
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Albert Mizrahi SmartLab Naucalpan, Mexico
Bill Skaer Bill Skaer and Associates LLC Mesquite, Texas, US
Albert Mizrahi started his career in the industry as the director for Control4 Mexico. During his time with Control4, he opened the first experience center in Mexico, and the center has since been replicated worldwide. Six years ago, Mizrahi opened SmartLab, an integration company that specializes in residential, commercial, and hospitality projects. His work has won multiple awards including CEDIA Awards. A year ago, Mizrahi opened his own distribution company. He is a Dealerscope 40 under 40 honoree and has won the Control4 International Distributor of the Year award five times.
Bill Skaer, a former U.S. Air Force management analyst, has served as a CEDIA volunteer and a seven-term previous board member. In 2006, he received the CEDIA Lifetime Achievement Award. Skaer has also been named CEDIA Volunteer of the Year, CEDIA Fellow, and spent nearly two decades as CEDIA Ethics Committee chairman. He co-founded Eric Grundelman's Cool AV, an electronic systems contracting company, and CEDIA Founding Member. In 2014, Skaer sold his interest in the company, pursuing a career in consulting and manufacturing, as he founded his own technology integration company.
Joe Whitaker Thoughtful Integrations Clayton, MO, US
Amanda Wildman TruMedia Ada, Michigan, US
Joe Whitaker has over 20 years of experience in home systems installation and design, and is an award-winning product designer and inventor. Whitaker is an active member of industry press and sits on many product award judging panels. Whitaker is currently the principal of the integration firms The Thoughtful Home (residential) and The Thoughtful Restaurant (hospitality), operating in St. Louis, MO, and Dallas, TX.
The former chair of the CEDIA Professional Development Advisory Council, Amanda Wildman is also a member of the CEDIA Workforce Development Working Group. She has served as a member of the Business Working Group and has assessed, assisted, and taught courses at CEDIA Expo. Wildman earned her CEDIA Outreach Instructor certification (COI) in 2014. She is on the board of the Home Builders Association of Greater Grand Rapids and has been secretary and associate member vice president. The Calvin College graduate founded a Finished Trades Group in her city that develops relationships among local trade contractors and builders, designers, and architects.
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originacoustics.com
A YEAR
FOR THE B O OKS
CEDIA ADVANCES ITS STRATEGIC INITIATIVES IN 2019 In February 2018, CEDIA rolled out the strategic plan that prioritized the work of the association over the following three years. The plan aims for significant advances and leadership in three key areas: education; increasing professionalism through standards, guidelines, and best practices; and deeper engagement and partnership with the design and build community. Here are some highlights of the progress we’ve made in 2019.
EDUCATION AND CERTIFICATION People trained in-person to-date: 11,927 in 14 countries
2,269 online classes from 26 countries Total Certifications Held: 1,251 Certification Exams Taken: 312 10
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NEW Certifications Earned: 218
WORKFORCE DEVELOPMENT CEDIA Electronic Systems Integration Technician Program introduced:
12-week pilot program complete U.S. recruitment for next cohort
Cohort of 8 graduates
Connect members with trainees Creating an online job center
INDUSTRY PROFESSIONALISM Podcast: 54,000+ unique downloads in 2019
ANSI: Pursuing ANSI accreditation to become an independent Standards Development Organization, to be completed in 2020.
Five new white papers in 2019
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DESIGN AND BUILD PROS OUTREACH $835,696 Earned Media Value Media Impressions: 64.7 million Design and build pros reached by Outreach Instructors: 3,069 New CEDIA Outreach Instructors: 127
MEMBER BENEFITS 12 Advanced Members from 4 countries
PROPRIETARY RESEARCH Members have access to CEDIA's research, including the annual Size and Scope report, free of charge.
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10 Members of Excellence from 5 countries
GLOBAL CONNECTION
Members in 79 countries
Awards Stats: 23 countries 223 entries 143 entrants
For more details on our strategic plan please visit our all-new website at cediastrategy.com
CEDIA's New Hire Training Track gets your new techs up to speed
Samantha Ventura Vice President of Education and Training, CEDIA
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LEAVE THE TRAINING TO US
CEDIA has recognized how significant this training is for the business owner seeking a comprehensive onboarding package.
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few years back, CEDIA recognized the need to develop a thoughtful, comprehensive, new-to-the-industry track of learning that would be helpful for business owners looking to have their less-seasoned technicians learn the fundamentals of the industry. We realized at the time the best way to deliver this training would be online, offered in a series of courses that would cover all the essential components needed to make a seamless transition into the world of residential technology. Now, three years later, CEDIA has once again recognized how significant this training is for the business owner seeking a comprehensive package of learning offered in a one-stop-shop for their newer employees. We have taken the existing New Hire Track and completely redesigned the look and feel of the classes, broken them down to be more detailed and specific, and placed them into our brand new learning management system (LMS). In order to follow a “best practices” approach for developing this track, our director of technical training, Steve Rissi, and our director of curriculum, Derick Abshire, have sought out the expertise, knowledge, and guidance from our subject matter experts (SMEs) every step of the way, ensuring we have covered all aspects of each topic comprehensively. In addition, we have thoughtfully created an individual participant guide for every corresponding class, with our intent being that upon completion of the entire New Hire Track, a technician might feel more confident and prepared on the job. The learning is robust, engaging, and packed full of the key components needed for someone wanting to expand their knowledge base of the industry. Yet this time around, we
made sure to modernize how the courses can be accessed by learners: whether from the comfort of their home, on a job site, or even if they find an extra hour here or there, logging in from their phone. The updated New Hire Track is 27 hours (classes) of learning, which lays out the various parts of each topic and allows the training to move seamlessly from one area to the next. The new track’s offered in a compact, easy-to-follow format. We infused a wide variety of activities into the online learning, including quizzes, knowledge checks, and interactive experiences, striving to reach all types of learners, from various backgrounds, across the globe. In 2020, we are launching this newer, comprehensive, engaging New Hire Track, and soon thereafter, we will localize the content and offer the same track to our learners in the EMEA region. Additionally, for those wishing to prepare online to confidently take
the ESC exam, CEDIA has for the first time developed an additional 12 classes to support the variety of topics required to pass that certification test. This is a new approach to offering our education solely online, without compromising the quality we know our learners expect. CEDIA’s commitment to education has not wavered, and in the coming years we will continue to support other educational interests of those in our industry, with an updated business track already in development for 2020. Whether you are a business owner looking to support your staff or an individual wanting to jump into this industry, we are certain you will find the New Hire Track to be an essential part of the onboarding experience. We love what we do, and we truly believe that the education of those within this industry is the cornerstone of what keeps the standards of knowledge and best practices high, which in turn supports the overall growth and success for everyone in the industry.
Topics covered in the New Hire Training Track •
Jobsite Basics
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Introduction to Audio
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Introduction to Video
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Introduction to Home Cinema
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Introduction to IT/Networking
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Introduction to Systems Control
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Introduction to Wiring/Cabling
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Introduction to Cable Connectors, Termination, and Testing
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I AM 16
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Richard Colman Luxe Smart Homes Tell us about how you got to where you are now?
I entered the industry with some experience on building sites through managing projects and renovations, knowledge of working with other trades, and familiarity of how things should look in the end. But the technical side was where I was struggling at the beginning. I visited the Homebuilding & Renovating Show and listened to a CEDIA member talking about smart wiring. I joined CEDIA as an individual member in 2017 — I think I was the first person to join in that way. I completed as much training as I could at the beginning to get me up to speed. After a bit of work experience, I formed Luxe Smart Homes in 2017, and I was then able to join as a Home Technology Professional member. And this year, I became an Advanced Member. It’s been a very steep learning curve, but I can honestly say that all the education I did has paid off.
So, it’s fair to say that education has played a big role over the last few years?
Absolutely — both CEDIA training and third-party courses. But what I also take away from education sessions is the contacts that I make. At this one, I was next to a guy who has been installing cinemas for 20-30 years. He was toe-to-toe with the trainer, and my
mindset was: “This is where I want to get to.” We swapped numbers as I said to him that if I had any cinema projects, I’d look to bring him to support me on the install. This is how you can get more out of training that you initially think.
What have been your priorities over the last two years?
I’m coming into my third year now as a CEDIA member. The first year was all about education, and the second year was about completing the COI course. With some CPD experience under my belt, I’ve decided to reach out wider than just architects, interior designers, and property developers. I now also focus on builders and electrical contractors. There are some big local electrical contractors who need to have a specialist for what I do. With architects, you could be looking at a two- or three-year journey before a job comes out of it, and it can be difficult to keep that contact going for so long. I previously did a LinkedIn campaign to build my connections with architects, but nothing came from it. A year later, I got a message from one of them saying, "I've got this project and it's really large, it's 15 acres, and the clients want some tech." So, it is important to connect with this audience, but you also need to think about linking up with professionals who will have immediate projects for you to work on, not ones much further down the line.
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"At every stage, I’ve been progressing forward, and that is what’s driving me as I can see the hard work is paying off."
What has surprised you about this industry?
I thought that a lot of IoT devices would be the products for the technology integrator. I now know that this isn’t the case — we don’t install that type of product. However, they do whet the appetite of the public. You get technology enthusiasts who want to go up to that next step of working with a professional for an integrated solution, and these are the ones who have the purchasing power to do so. I’ve heard people talk about the do-it-for-me market and have seen companies that just go down that model. I don’t think it’s sustainable, as you’ll have a huge base of customers who could potentially call you up because something’s not working. It might be for something as frustrating as their phone being on silent and they could not hear the doorbell ring.
How do you balance the installation work with running the business?
I bring in subcontractors to help me do what I would say is the heavy lifting, while I do all the design, programming, and maintenance work. This model works well for me: I’ve found that there are experienced professionals with capacity to take on extra work between projects, so I can tap into a healthy talent pool when required. I’ve found a trusted group of subcontractors through Instagram and through meeting people at various training courses.
Who is your target market?
I'd say my target market is 55-years-old and over. This audience has grown up with technology — TV sets, videos, DVDs, printers, computers, and Windows 95 and 98. They are usually successful by
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the time they get to 55 and living in a nice house. They've got no time for the pain of setting technology up themselves. They'll quite happily bring someone in to take that pain away. This older demographic has made big decisions in their life and are now ready to just enjoy it. Their kids have moved out of their rooms, and guess what, there’s now an opportunity to put a home cinema in one of them.
How do you demo to your clients?
I use the AWE show apartment to demonstrate a cinema setup. I am a Control4 dealer, so when I want to demo their systems, I bring clients to my own home or to similar previous projects I have worked on. (EDITOR’S NOTE: AWE is a UK AV distributor that’s created two cinema rooms for integrators to use for customer demos.)
How do you think your clients would describe you?
Reliable, approachable, genuine, and has integrity. I always deliver on time, to budget, and in the agreed timeframe. I've never worked with a client who's not been happy with what I’ve achieved for them. Even with the difficult ones, I’ve kept going until they’re happy. Going the extra mile for clients pays off the long run. I've experienced it.
What would you say is your unique selling proposition?
It's the closeness in the service that I offer, and the high level of work that I do. I am selective as to who I will work for. I want to maintain my USP, so I tend to not travel further afield for work. I've learned to find the clients who I want to work with.
Why is CEDIA membership important to you?
If you can say that you are a part of a professional body and certified by this global trade association rather than just someone who knows “stuff,” these other professionals — designers, architects, builders — are more likely to have a conversation with you, pick up the phone to you, or read your email.
important to have a work-life balance. I've had some coaching along the way, and that's all been really positive. The metrics that I’ve seen of where I've been going, what I've been doing, and the leads that I'm getting, it's all going in the right direction — I’ve already completed 32 projects. Hopefully it'll continue and in a couple years' time, I’ll be telling you more of the same, but bigger.
What's been your highlight over the last three years?
What would you have said to yourself when you started that you now know?
I'll be honest, I'm living the highlight. I'm not looking back at anything that I've done thinking, this isn't right, or this isn't how I wanted it to be. At every stage, I’ve been progressing forward, and that is what’s driving me as I can see the hard work is paying off. Because I've worked in the banking industry in the past, I'm hardwired to a 60-hour week and I enjoy working those hours. But it is
That's a good question. I would’ve said throw yourself into this industry even earlier than I did, as when you do, you either sink or swim, and I was always going to start swimming.
luxesmarthomes luxesmarthomes.co.uk
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CEDIA AWARD WINNER
CORAL ROAD
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An innovative home cinema room designed with family in mind
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dedicated cinema space in a family’s dream home in South Africa earned BNC Technology the award for Best Media Room Level I at the 2019 CEDIA Awards. The luxurious room, which was intended for the client’s whole family to use and enjoy, was inspired by a geometric panel design. One of the key challenges was the location of the room, which was in a basement but very close to the water table underneath the property. A concealed pump was put in place to drain excess water should the level rise above normal, but, for extra piece of mind, BNC Technology installed sensors which would both send a notification to the client’s smartphone should the water level become unusually high and shut off the power to selected components. Due to budgetary constraints, the home cinema could not be reference level — performance criteria of 99dB was established and taken into consideration when specifying the amplifiers to run the audio system. With a speaker sensitivity of 89dB, the setup would require 180W of power per channel to achieve the desired performance. Other factors taken into consideration included the specified speakers’ power-handling abilities — with peak power handling of 300W, the model of amplifiers’ BNC Technology selected had a rating of 200W per channel. This allowed the system to be effortlessly powered, with 10% headroom in the power amplifiers’ output ability. Coral Road was the first project in which BNC Technology had to implement a dedicated EQ unit as a permanent part of the setup. This added to the technical complexity of planning the cinema but ensured that perfect sound was delivered. The home cinema room was designed to look minimalist and contemporary — all the walls were CEDIA COMMUNICATES
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CONTACT
An inspired geometric panel design developed by BNC Technology.
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BNC Technology 16 Skeen Boulevard, Bedfordview, Johannesburg, 20070 Gauteng, South Africa
CEDIA COMMUNICATES
+27 11 023 7662 bnctechnology.co.za bnctechnolgy CEDIA Member Since 2011
upholstered in acoustically transparent fabric, meaning the audio technology could be hidden away, without its performance being compromised. A 145-inch acoustically transparent screen was installed, concealing the left, right, and center channel speakers, as well as a motorized lift to hide the projector when not in use. With the house being made of concrete, sound isolation was an important consideration — BNC Technology chose a double-door cinema room entry solution. A window on the outside of the house was covered with acoustic panelling on the inside and a dark tint on the exterior. Wood finishes and a bespoke sofa, with soft cushions and fine fabric throws, help to create a warm, inviting atmosphere and add a touch of luxury. On the first night that the client and his family used the cinema room, it was turned into a venue for a sleepover — very apt for a dream home!
A refreshments bar was installed at the back of the room.
EQUIPMENT LIST Apple Auralex Acoustics Control4 Denon Domotz DrayTek Epson Furman Power Isover Jamo Luxul Romom Rotel Samsung SVS Yamaha
A motorized lift was installed to conceal the projector when not in use. The front stage consists of an acoustically transparent screen with speakers hidden behind.
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One big highlight here: the 168-inch LED panelized display.
This Experience Center is a Control4 Certified Showroom.
Big Screens & Man Caves
T
he Atlanta Audio and Automation experience center is a Control4 Certified Showroom, with features that include a living room with a Vutec ScreenArt System and a 55-inch Sony OLED TV, a conference area with a Seura Smart Mirror, and total voice control of the entire showroom. There's also a hospitality area with a Nexus21 motorized lift that brings a 40-inch Sony 4K TV up from under the counter-top. There’s also a “man cave,” highlighted by a Screen Innovations 120-inch Zero G Motorized Screen and Sony 4K Projector. That screen rises to reveal several Sony TVs. Sound in the “man cave” is delivered via an Origin Acoustics Dolby Atmos System using 10-inch, three-way, in-ceiling pivoting speakers. Outdoor solutions are represented with a 55-inch Sunbrite waterproof TV (with an active water feature) and an Origin Acoustics outdoor speaker system. CEDIA COMMUNICATES
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Speaking of water, there’s a Dam-It Automated Valve system to demo smart plumbing shutoff functions. There are also Lutron QS Motorized Shades throughout the showroom, an eight-camera Luma surveillance system, and a Pakedge BakPak network system. One thing that truly impressed the CEDIA judging panel, however, was the installation of the 168-inch LED panelized display. One judge says: “This is the first time I’ve seen it in a showroom. It really pushes the boundaries, and it tells me they’re willing to address the audio challenges that come with this kind of display.” Big screens are often acoustically transparent, so that speakers delivering dialogue can be placed behind the image. Careful speaker placement and calibration are in order for a screen like this to give the proper illusion of sound coming from an actor’s mouth. This feature also includes a Vutec ScreenArt panel that lowers to cover up the panels when the system is off.
CONTACT
"It tells me they’re willing to address the audio challenges that come with this kind of display."
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Atlanta Audio & Automation 631 Miami Circle Atlanta GA 30324 US
CEDIA COMMUNICATES
770.977.9110 atlantaaudio.com atlantaaudio CEDIA Member Since 2007
Experience Center: 2500 Old Milton Pkwy. Suite 120, Alpharetta GA 30009 US
EQUIPMENT LIST Control4 Dam-It Kaleidescape Luma Lutron Middle Atlantic Nexus21 Pakedge Origin Acoustics Seura Sony Sunbrite Vutec ScreenArt
INDUSTRY PARTNERS Jo Rabaut ASID, IBD, IIDA,NCIDQ Role: Interior Designer Deana Gunter Role: Builder
There’s a conference area with a Seura Smart Mirror — and total voice control of the entire showroom.
Automation solutions are only a touch away.
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THE CEDIA AWARDS: MORE THAN A TROPHY Ed Wenck Content Director, CEDIA
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For Nic Black, managing director of the UK’s Pyramid Group, winning a CEDIA Award means quite a bit more than a pretty piece of hardware — for Black and his firm, it means more highend business. “When we won our first Home Cinema Level II, which was in 2016, that project was something that obviously we marketed quite heavily as a result,” Black remembers. “And within five weeks of that project being awarded, we had a conversation with a gentleman from Ireland. I inquired how he heard of
us, and he said, ‘Well, simply, I wanted a cinema; the best I could get.’ “So he went to the CEDIA website,” says Black. “He saw that we had just been awarded for Level II. So, he said, ‘Well, you're clearly the best in the industry this year, so that's why I'm phoning you.’”
Awards = Credibility
For Jason Barth, a founder of The Premier Group in Indiana, US, his company’s two wins in the category of Best Integrated Home, Level IV (2018
and 2019, Americas), have provided a wealth of marketing opportunities. When CEDIA’s Director of Public Relations and Industry Relations Olivia Sellke fielded a call from the Wall Street Journal (a reporter was interested in doing a story on high-end media rooms for the Journal’s “Mansions” section), Premier was one of the firms that wound up making the final cut after Sellke had made a number of introductions to Award winners and finalists. This was the first of two stories picked up by the WSJ in 2019, and after working with CEDIA, six members were featured overall. “CEDIA Awards project winners and Members of Excellence are always our first go-to for any media opportunities — the submission process provides the key details that help us create a compelling hook Winning a CEDIA Award for a story pitch and give us a great provides a wealth of repository for marketing opportunities. when a member of the press has a specific request,” says Sellke. That bit of press in the WSJ stands out for Barth for a number of reasons. First and foremost, as he says, “My stepdad reads the Wall Street Journal cover to cover every day, and I did not tell him that we were making the journal. I think it was about 10 after seven in the morning the day that issue came out, and my phone's already ringing. It's my mom, and she's like, ‘Oh my God, you're in the Wall Street Journal!’” Parental pride aside, that project has been a great resource for Premier, and not just as a marketing tool for clients: “I met with a homeowner and her interior designer (who’d flown in from Minnesota), and the client and the designer were sitting at a table when I walked into the house. This house is in drywall and finish trim, and the client turns, looks at me, and says, ‘Hey, I heard you guys just won another award.’” CEDIA's new design forward website (cediaawards.org) As Barth further notes, that kind of showcases all award winners and finalists’ projects as well as the credibility from the homeowner puts year’s Best New Product and Product Hall of Fame winners. design and build pros right at ease. CEDIA COMMUNICATES
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The Entry
Submit for the 2020 CEDIA Awards now through March 23, 2020 at cediaawards.org. Projects must have been completed within the last two years — March 2018-March 2020.
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Of course, a firm can’t win if they don’t enter. Black’s firm has tallied three first-place wins and a “Highly Commended” trophy, and he’s got the process down to a science. After gathering all the technical data and choosing the perfect photos, he then becomes something akin to the managing editor of the entry. “I would vet, write, and direct other team members. So, for example, if there’s a portion to do with lighting, then one of my colleagues who’s in charge of the technical lighting design within the organization would typically put together that information. It’s authored by those who are kind of specialists. “Similarly, my colleague, Simon, who’s our audio guru, of course will have done all of the calculations, the speaker placements, angles, everything. It obviously stands to reason that he’s going to knit together the pre-project technical design and bring together the actual calibration results and summarize that.” And to wrap up the process, Black fills in the rest of the blanks: “So I become more of an editor at the end. I’ll write quite a bit of it in terms of the construction, the design, the concepts, the client input.”
Hidden Figures? Owning an integration business can be lucrative, but could your profit figure be masking some major room for improvement in the performance and finances of your business? What if an average-to-good profit could be turned into an amazing profit?
How to break down your profit number? Most integrators we talk to have at least two or three different segments of the business that can easily be identified. These could be broken down by geographical areas, residential versus commercial, and so on. Once you have identified the segments of your business, you need to ensure the regular financial reports that you look at to drive your business decisions are broken down into those segments.
How do you do this? Your financial reports will only be useful to you once the data behind the reports is accurate and segmented properly. This is a three-step process: 1) First, you need to break down the account codes or categories in your accounting software to accurately reflect the different segments of your business, 2) Then, ensure that your regular bookkeeping records your income and expenses as per these categories, and, 3) Configure your financial reports to be meaningful to you.
Data + Structure = Information Information + Knowledge = Intelligence Intelligence + Experience = Insight
Luke Desmond Crisp Accountancy
Without this insight, you may look at your overall profit for the year and think you are doing great. But what if one segment of the business is very profitable and masking the other underperforming segments? How much better could you have done knowing this information and taking action to address this?
About the Author Luke Desmond is the CEO & Founder of Crisp Accountancy, a UK firm that helps smart home and AV businesses to increase their profits, master their finances, and make better financial decisions.
crispaccountancy.co.uk
@LukeD_Crisp
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CHALLENGE & SOLUTION
UV
TO THE RESCUE
A Ken Erdmann Director of Workforce Development, CEDIA
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s an electrician and systems integrator over the last 40-plus years, I have seen some radical changes in technology and the systems that we install and integrate. While most reading this are intimately familiar with the changes that have had such a huge impact on our industry when it comes to the integrated custom entertainment and communication systems that we install, I’ll bet there is one area that you all may not be as familiar with. I am referring to the lighting technology used to make our food and home environment cleaner and safer. Using ultra-violet light to kill germs, mold, and bacteria has been part of the food service, processing, and handling industry for many years. I’ve worked for a number of smaller industrial and commercial clients doing electrical work, and one of those was a soft drink bottling plant. This company used
huge amounts of liquid sugar and corn sweeteners that were stored in large stainless steel tanks. To ensure purity of the product, we installed high-output UV lighting systems in the tanks, since these lights killed any bacteria and prevented the growth of mold. In some cases UV lights were also used to disinfect tools and mixers to ensure nothing could contaminate any part of the system. The use of UV lighting attained a pure system without using harsh or toxic chemicals.
From Hospital to Home
Medical services also use UV lighting sources to ensure that implements are as sterile as possible. In a few of our customers’ homes, we’ve used UV light installed in the fresh air ducts to kill mold and bacteria and to control allergens. While limited in use, they were effective in homes for people with compromised immune systems.
These UV light sources came with a number of cautions and safety warnings. These were wide-spectrum, high light output UV sources that could cause vision problems when viewed directly. Over time with exposure, they can increase the risk of skin-related problems. Today, research is being done using LED lamps and luminaires to target specific bacteria, molds, and allergens. The University of Strathclyde in Glasgow, Scotland, discovered that a specific blue-light wavelength of proper intensity could deactivate methicillinresistant Staphylococcus aureus (MRSA) and other strains of bacteria. They found that using LED blue-light sources between 400 to 420 nanometers was effective in killing not only MRSA but other strains of bacteria. In fact, 405 nanometers was the best for the elimination of MRSA. This groundbreaking research could save hundreds, if not thousands of lives every year. Hospitals spend huge amounts of money and allocate massive resources in the effort to keep MRSA from infecting patients.
Using ultra-violet light to kill germs, mold, and bacteria has been part of the food service, processing, and handling industry for many years.
More Than MRSA
The University of Strathclyde has continued their research using blue spectrum LED lighting against other bacteria including listeria and E. coli. The University has licensed their patents to a number of companies who are manufacturing lamps and luminaires that are being used in hospitals and other locations to control bacteria and other unwanted contaminants. Additionally, researchers are exploring the use of blue spectrum and UV light in wound treatment and care. For those of us in the residential world, this research becomes important because companies like Neu-Tech Energy Solutions and Kenall are making lamps that are direct replacements for standard LED lamps using off-the-shelf luminaries. These companies are providing lamps for residential applications that require mold remediation and anti-bacterial uses. You could, for example, use a lamp that combines white lights combined with the blue lights to kill mold in a shower. If customers are aging or have compromised immune systems due to illness, injury, or chronic health problems, the installation of the proper combination of blue and white light sources could have a dramatic impact on the quality of life.
If customers are aging or have compromised immune systems due to illness, injury, or chronic health problems, the installation of the proper combination of blue and white light sources could have a dramatic impact on the quality of life. CEDIA COMMUNICATES
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GAME ON! There’s money in esports — for players and integrators
Ian Bryant Vice President of Technology Application and Workforce Initiatives, CEDIA
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A teenager won $4.3 million (out of a $43 million prize pool) at the 2019 Fortnite World Cup. The champ took home the top prize out of 1,381 players, after 40 million players participated in qualifying events across the globe. Fortnite has over 200 million players worldwide according to the game’s creator, Epic, but Fortnite doesn’t even award the largest payout. League of Legends and Counter-Strike Award pools have been in the $60 million range, and Data 2 is at $172 million, according to esportsearnings.com. Esports prize money payouts have surpassed Wimbledon, The Indy 500, and The Masters.
Gaming has achieved a popularity that the creators of Pong could have only dreamt of. According to the Entertainment Software Association (ESA), a massive 64% of households own a device that they use to play video games. Of those, 41% are PCs, and 36% are dedicated gaming consoles. No less than 56% of the most frequent gamers play multiplayer games, and of those 42% play with friends and 19% with family. Consumers spent $36 billion on gaming in 2017, $4.7B of that going to hardware and $2.2B to accessories. The number one influential factor for video game purchases is the quality of the graphics. From serious gamers trying to grab the esports spotlight or casual gamers having fun with friends and family, all of this gaming is building the demand for a space in the home to play.
The business opportunities for a game room in the home have never been better.
To get the full experience of high-quality gaming, gamers need a highperformance console or PC, coupled with a super-fast, high-quality display and a pair of high-definition headphones or even immersive sound. People are even creating their own multiplayer gaming rooms for parties and friendly competitions. It doesn’t take long when scrolling through a site like houzz.com to find thousands of game room examples that are professionally installed and set up by integrators. What else do you need to include in a rock-solid game room in the home? For the best experience, you need:
• A robust, enterprise-grade network with a high-speed internet connection and solid wireless throughout
• Fast, large, and high resolution displays capable of 4K resolution with a minimum 144Hz refresh rate
• Immersive sound, either in the room or on your head, so you can hear every pin drop in the game
The business opportunities for a game room in the home have never been better — and with the technology experience our industry professionals have, we can create some adrenaline-pumping solutions. CEDIA COMMUNICATES
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Can Lightning Strike Twice? Steve May considers the launch of Dolby Atmos Music and asks, have we heard it all before?
Steve May UK Technology Journalist @SteveMay_UK
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With immersive audio now dominating the movie scene, from sound mixing to cinema design, Dolby has once again turned its attention back to audio, launching Dolby Atmos Music — but will this new immersive variant chart or tank? In many ways, Dolby Atmos Music is a tip of the hat to the technology giant’s music heritage. OG AV pros will remember first encountering Dolby as an audio-only noise reduction technology. But Atmos Music is rather more sophisticated than Dolby A, B, or C. Adopting object-based content creation allows artists to strive for an entirely new
listening experience, one seemingly ripe for technology integrators to exploit. But there are caveats — and surround sound audio isn’t exactly new. Super Audio CD and DVD-A didn’t just offer an early taste for highresolution audio on physical media, they also supported multichannel mixes. The SACD 5.1 release of Pink Floyd’s Dark Side of the Moon album remains to this day a powerful example of just how ahead of its time that Sony/ Philips disc format was, while Rush’s 2112, in multichannel DVD-Audio, still remains the next best thing to seeing the Canadian rockers live.
While immersive audio for music remains a work in progress, high-res audio has very much broken through. It’s now a tangible benefit, widely understood by consumers.
But sadly neither format took off. Dolby Atmos Music is taking a different approach. For one thing, it’s not dependent on any physical disc format. Sure, there are Dolby Atmos Music releases on Blu-ray, but they’re far from mainstream purchases. What actually makes this new Atmos iteration interesting are the partnerships Dolby has struck with streaming giants Amazon Music and Tidal. Title availability may be limited, but, with both Universal and Warner on board, the catalog should improve rapidly. Atmos is available as part of Amazon Music HD and on Tidal’s premium HiFi tier. But, frustratingly, the opportunities both offer are limited. While Amazon’s Fire TV streamers (from the Fire TV Cube down) have an Amazon Music HD app, its device is limited to 24-bit stereo. You can’t output Atmos music from a Fire TV device over HDMI into a fully-fledged home theater system. Indeed, currently the only way to experience it is with the Amazon Echo Studio, a relatively inexpensive smart speaker, albeit one with a trio of mid-range drivers — one up-firing, one a downward-firing bass woofer, and one a tiny tweeter! As a single device, the Echo Studio is undoubtedly interesting, but it hardly opens the door to new business. Fellow Dolby Atmos Music supporter Tidal doesn’t even have the benefit of a media player platform. So just how are
users expected to enjoy this new era of immersive audio? On headphones, it seems. But we have good news! A Dolby insider has confided to us that it is looking to unlock Dolby Atmos Music playback from Fire TV gizmos via a firmware update. So it might be worth designing listening rooms with Atmos in mind, sooner rather than later. Of course, Dolby Atmos Music isn’t the only immersive music gig in town. Sony has a rival technology, known as 360 Reality Audio, which does much the same thing. Also available through Amazon Music, as well as Deezer, it’s similarly a headphone proposition, with decoding provided by a smartphone app. Thankfully, Sony hints at wider future use. Perhaps we’ll have 360 Reality Audio support on the upcoming PS5 games console? Now that sounds like a plan to us. While immersive audio for music remains a work in progress, high-res audio has very much broken through. It’s now a tangible benefit, widely understood by consumers. Qobuz, Deezer, Tidal, and Apple Music (under the Apple Digital Masters banner) have led the way, and the arrival of Amazon into the HD audio space is only going to accelerate customer demand. This translates to a solid opportunity to up-sell audio systems, and the spaces they live in. That’s sweet music to everybody’s ears. CEDIA COMMUNICATES
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Ed Wenck Content Director, CEDIA
Highlights from our conversation with ETC’s Michael Cogbill
THE CEDIA PODCAST:
Cameras in Focus
W
hen it comes to surveillance and security — as with any other custom integration — the discovery process is key. Michael Cogbill, CEDIA Board Member and VP of engineering for ETC Simplify (Palm Beach, FL), is well-versed in these systems, from cameras to lenses to recorders to storage devices, and he joined a recent CEDIA podcast for a deep dive into all of these systems. Cogbill stresses the critical nature of those initial discussions: “It’s interesting because we get these clients, and they
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come in and they start asking, ‘Well, what kind of cameras are you going to put in?’” Cogbill’s response is consistent. “Whoa, wait a minute. If you had cameras, what would you do with them? “Here’s this starting point: What do you want to see? What is it that you think you want to see when you’re looking at your camera? Where do you want to put the emphasis? Are you wanting 100% coverage so you can see every inch of your property? Or do you just want to see the kids in the pool, and maybe see who’s coming up the driveway? Those are a lot different than if you’re doing a fairly high-security application.”
Want to hear the whole episode? It's "The CEDIA Podcast 1947: The Surveillance Show."
Better Than the Human Eye
Cogbill has a ton of examples to draw from — even marine applications. “One of our clients had a really large yacht. It was berthed over in Perth, and he was taking it west across some very bad territory that had known pirates roaming those waters. In addition to having security, he wanted to have some visibility, particularly at night,” Cogbill remembers. The client had already determined that he’d need cameras with infrared capabilities. Cogbill had a better solution: “I told this gentleman, ‘You have to understand that you're out in the middle of the dark ocean, you're not going to see that well. You're only going to see a limited distance.’” Other factors — fog, for example — made the infrared solutions less than ideal. “I convinced him to install what are called thermal cameras.” The client was impressed by the resolution they afforded — even at distances that could alert the crew to approaching danger in plenty of time. “We had these cameras that could see 1,500 to 2,000 feet out in total darkness,” notes Cogbill.
Pixels Per Foot, or PPF
For more common, land-based applications with traditional cameras, one of the many factors to consider is pixels-per-foot: That number has a pretty profound effect on resolution. Cogbill explains: “If I take a picture of you from ten feet away with a 1080p camera, I’m going to get a pretty good image. If you are away from that camera — say 100 feet — fewer pixels are dedicated to your face. It’s going to be harder to figure out who’s in the shot.” That issue becomes compounded when the camera’s field of view is widened. Cogbill notes that he has a baseline for PPF. “I try to design at 50 pixels per foot at my worst-case distance,” he explains. “At 25 pixels per foot, I'm probably not going to be able to see who it is. At 50 PPF, you can recognize someone. Say your client has a really deep backyard and a twomegapixel camera, and you open it up with 100-degree field of view, you’re going to miss some stuff.” There’s much more info in the full podcast, but the bottom line here is that firms like Cogbill’s are seeing growth in the segment. Consumer awareness as a result of devices like DIY video doorbells are leading to interest in better products, says Cogbill. “I'm using more professionalgrade products that integrate well with our control systems. “The whole integration game has changed with how we do this.”
“I try to design at 50 pixels per foot at my worst-case distance.” Michael Cogbill
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GET IT IN WRITING When it comes to agreements, a handshake isn't enough I’ve been thinking about the topic of trust for years, ever since a client said to me, “Trust is a luxury I could never afford in business.” In other words, “No, I don’t trust you.” This particular conversation was about a light fitting that I’d charged him £X for on a London project and £Y for on a French project (for the same thing, £X was correct and £Y was overcharged). That was the catalyst for a 50% settlement of a sizeable combined final account across five properties for this one client. A take it or leave it deal. So, we lost the client’s trust — and enough money to hurt. This error in my paperwork wasn’t intentional, it was a genuine oversight, but as this client pointed out, “It’s amazing that mistakes on invoices are never in favor of the client.” I had no rebuttal. We had the trust, and then it was gone — or maybe it was never there to begin with. Either way, poor documentation shot me in the foot. I suppose the lesson here is that I relied on trust to shore up my shortfalls. The final account was made up mostly of changes that we hadn’t processed in real time (or hadn’t produced documentation for). So maybe I was hoping that the trust I thought was there would curry favor at the end of the day. I’ve since learned that’s not how it works, and I’d be lying if I said this kind of thing didn’t happen more than once. That was ten years ago, and the conclusion that I’ve reached is that you don’t need trust
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in business. You shouldn’t ask for it or expect it, not when you’ve got your business hat on. Trust should have no place where money is changing hands. I’ve now erased trust from my business vocabulary, and I’ve replaced it with documentation. Davy Currie My clients no longer have to trust that I’m Managing Director going to do a, b, and c. It’s all written down. of Infracore Every detail of my service is specified up front: performance specifications, technical specifications, functional specifications, scope of work, service level agreements with T&C’s, health and safety, and insurance coverage. Although you also need to replace trust with belief, this, however is a byproduct of good documentation and collateral — certifications, I’ve now erased trust awards, press, references (don’t wait to be asked for them!), case from my business studies, your mission statement, vocabulary, and your “Why,” and testimonials I’ve replaced it with from clients, suppliers, documentation. subcontractors, staff, peers, and your competitors (you’d be surprised). Have all of these arrows in your quiver. The result: Your clients (particularly new clients) don’t need to trust you. They just need to believe you. Good documentation feeds that belief. Belief and documentation will win the day infracoreuk.co.uk over trust every time.
Your clients (particularly new clients) don’t need to trust you. They just need to believe you. Good documentation feeds that belief.
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US Size and Scope: A Preview Residential technology industry continues to grow, future opportunities may shift
As building and home improvement research experts, The Farnsworth Group has once again worked with CEDIA to understand where the systems integration market is and where it may be going. The 2019 CEDIA US Size and Scope results reflect a stable market that continues to grow, though perhaps not at the rate of prior years.
Revenue Growth and Continued Optimism
On average, revenues were up roughly $400K from 2017 to 2018 for companies focused on residential systems technology integration. This increased the total market size from $16.5B in 2017 to just over $18B in 2018. Companies anticipate similar growth for 2019 for both revenue and expected number of projects.
Expected Increase in Revenue in Next 12 Months 6%
1 - 5%
10%
6 - 10%
32%
33% 32%
11 - 20% 21 - 30%
10% 7%
31 - 50% More than 50% Not sure / Don’t know
Grant Farnsworth The Farnsworth Group
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34%
4% 1% 2%
7%
16%
9% 2017 2018
Across several business metrics, we see that system integrators remain optimistic, but perhaps are not as aggressive as the prior year. This reflects a similar sentiment seen among remodelers and home builders and may be a result of the market cooling, yet remaining positive.
Some Old, Some New Challenges
Certain challenges that have become a mainstay in recent years for our industry: labor, material prices, and land prices. This is evident when we see results from the CEDIA Size and Scope report. Top Challenges for System Integrators
21% 15%
Finding employees / finding qualified employees
DIY products / Competition from DIY products and DIYers
11%
8%
Educating clients / Setting realistic expectations
Competition / price competition
5%
5%
4%
Fast changes in the technology
Economy slowing / Tarrifs / Lower margins
Integration complications
However, a more recent challenge has been revealed in residential construction after years of expansion of the luxury market — affordable homes. Existing home prices continue to rise due to limited housing inventory and high costs. This is putting pressure on building affordable new homes for a large percentage of consumers that are under the age of 40. (Yes, “millennials.”) Mature millennials are now up to 38-39 years of age, and they are increasingly driving the new home buyer market. They are looking for homes under $500K, which means the luxury market is seeing fewer customers. High home prices are also affecting mobility. Owners are moving less and staying in their homes longer. Available Homes vs Homes Sold
30%
25%
20%
15%
10%
5%
0%
<$150k
$150k $250k
$250k $300k
$300k $400k
Housing Inventory
$400k $500k
$500k $600k
$600k $700k
$700k $800k
$800k +
Annual Closings
Opportunities for Future Growth
Residential systems technology companies may be impacted with the decreased opportunities in the luxury market. However, by understanding the housing dynamics of today, they can identify new opportunities for tomorrow.
New Construction
There is a high demand for new, affordable homes. These homes sell quickly and often to young buyers who are much more tech savvy than the prior generation. Many new home buyers are digital natives. While the homes may be smaller, and budgets may be lower, there will be more affordable homes built in coming years with a much larger potential customer base looking for customized technologies in the home.
Existing Homes
According to Harvard’s Joint Center for Housing and the Home Improvement Research Institute (HIRI), the residential remodeling market is expected to grow over the next two years. Much of it will be driven by those remaining in their homes, doing projects to make their home more enjoyable. System integrators have a big opportunity to help these homeowners achieve the significant upgrades they want on homes that continue to age. The 2019 Size and Scope of the U.S. Integrated Residential Technology Industry is now available at cedia.net. CEDIA COMMUNICATES
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THE LAST 5% WISDOM FROM OUR MEMBERS (AND SOME OTHERS, TOO) “The toughest part of a job? Sometimes it’s the last 5%.” – Anon.
Article 6525 in the NEC 2020 code deals with using your Tesla to power your house during an outage. Some smart entrepreneurs have figured out how to use that battery on four wheels as a backup system. Ken Erdmann (Erdmann Electric) on the new tech addressed in the 2020 National Electrical Code from the CEDIA podcast “What You Need to Know About the NEC 2020” (Episode 146, No. 1942)
Just as the internet phenomenon, the IoT will touch every aspect of our lives in less than a decade, with these sensors having a front row seat for the phenomenon. Are you ready for it? Christiaan Beukes (Sphere Custom Design) in his CEDIA Talk “Mass Sensorization” at Expo 2019 in Denver
We’ve heard from people that they turn off the learning feature of their smart thermostat because the device can “learn” things that they don’t want it to. Reinforcement learning is an amazing aspect of AI that enables certain applications that would otherwise be impossible, but it’s not the right fit for every problem. Alex Capecelatro (Josh.ai) on artificial intelligence from the CEDIA podcast “AI Update from the Z-Wave Fall Summit” (Episode 145, No. 1941)
Instead of dedicating an entire channel to a transmission, you only use the amount of channel you need for the amount of data you’re sending. In other words, it’s much more efficient. Nathan Holmes (Access Networks) in his CEDIA Talk “Wi-Fi 6” at Expo 2019 in Denver
The concept is “technical debt” — when a new product comes along, you need to learn all about it. Do you ever build the time it takes to learn about that product into the price of your service? Eddie Shapiro (SmartTouchUSA) on a course at CEDIA Expo 2019 taught by Ray Holland (Jobe Systems) called “Customer Service — Are You really Making Money?”
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SEEING i TO i When it comes to home technology, it’s not enough to see the future. Installers and integrators—it’s your job to see how people fit into that future. Of course, we’re not here to tell you how to do your job. As the largest network of Home Technology professionals, we’re here to help you do your job better. Learn more at CEDIA.NET/MEMBERSHIP
EMBRACE THE HUMAN NETWORK.
CEDIA Member Alec Haight Kansas City, KS Pioneer Music
C U STO M I N T E G R AT I O N P R O G R A M
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Get the Perks and Benefits of a DISH Partnership The Custom Integration Program provides integrators with exclusive benefits like on-site surveys and installations, a dedicated support team, and account management on behalf of customers.
D I S H . C O M / C U S TO M I N T E G R AT I O N
