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CEA/NAHB Builder Survey

9/01/2003 02:00:00 AM Eastern


HOME ELECTRONICS

Builder offers as standard or optional

Standard Optional Both Not offered TOTAL
Structured wiring 33.9% 37.7% 6.4% 22.0% 100.0%
Monitored security 6.7% 49.9% 5.4% 37.9% 100.0%
Distributed audio 1.4% 51.8% 4.0% 42.8% 100.0%
Home theater 1.4% 50.7% 3.2% 44.7% 100.0%
Automated lighting control 0.1% 28.0% 3.0% 68.9% 100.0%
Home automation 0.2% 24.0% 2.9% 72.8% 100.0%
Energy management 0.4% 27.9% 3.3% 68.5% 100.0%


SYSTEMS INSTALLED: Percent of Homes

Structured wiring 42.1%
Monitored security 17.9%
Distributed audio 8.7%
Home theater 9.2%
Automated lighting control 1.1%
Home automation 0.4%
Energy management 0.8%


SYSTEMS INSTALLED: Typical Price

Structured wiring $1,211
Monitored security $1,215
Distributed audio $1,411
Home theater $5,105
Automated lighting control $8,786
Home automation $4,140
Energy management $2,065


IMPORTANT FACTORS IN COMPANY'S DECISION TO INSTALL:

needed to compete in market buyer or architect specifies Increases our profit potential set us apart from competition
Structured wiring 74.7% 14.6% 22.3% 32.5%
Monitored security 47.5% 27.6% 32.9% 18.9%
Distributed audio 32.5% 37.1% 47.3% 20.2%
Home theater 30.9% 34.4% 51.1% 21.1%
Automated lighting control 25.6% 47.0% 31.4% 16.2%
Home automation 22.4% 48.4% 30.0% 13.2%
Energy management 28.8% 40.1% 32.6% 13.0%
Reasons Company does not Install:
not much demand for product too little profit potential can't find product or installer need to learn more about it first
Structured wiring 94.7% 3.3% 0.1% 5.2%
Monitored security 76.6% 17.5% 4.3% 3.9%
Distributed audio 83.0% 6.2% 4.9% 14.1%
Home theater 84.0% 3.2% 4.2% 13.3%
Automated lighting control 85.5% 3.5% 4.4% 21.5%
Home automation 84.9% 4.2% 4.4% 20.0%
Energy management 88.6% 2.9% 4.3% 16.5%



HOMES EQUIPPED (AT MOVE-IN) WITH HIGH-SPEED INTERNET CONNECTION (CABLE, ADSL/DSL, T1 LINE, OR SATELLITE)
Percent of Homes 36.4%
HOMES WITH A HOME OFFICE
Percent of Homes 28.9%
IMPORTANCE OF INCLUDING LATEST HOME TECHNOLOGIES IN MARKETING HOMES COMPARED TO TWO YEARS AGO
Much more important now 31.4%
Somewhat more important now 39.5%
Neither more nor less important now 27.9%
Somewhat less important now 1.2%
Much less important now 0.0%
TOTAL 100.0%
IN THE PAST TWO YEARS COMPANY REVENUES FROM ADDING HOME ELECTRONICS TECHNOLOGIES HAS:
Greatly increased 9.3%
Somewhat increased 40.2%
Stayed about the same 49.0%
Somewhat decreased 1.2%
Greatly decreased 0.2%
TOTAL 100.0%
IMPORTANCE OF INCLUDING LATEST HOME TECHNOLOGIES IN MARKETING HOMES
Very important 19.2%
Somewhat important 51.7%
Not important at all 29.1%
TOTAL 100.0%
TYPE OF SUPPLIERS/INSTALLATION CONTRACTORS USED FOR HOME ELECTRONICS TECHNOLOGIES
Electrical contractor 75.7%
Security installer 73.0%
System integrator/Custom installer 34.6%
Major retailer 4.4%
Utility company 12.1%
Our company installs them win in house labor 1.5%
Other 0.6%
AVERAGE RATING OF SATISFICTION WITH PEOPLE USED TO SUPPLY AND INSTALL HOME TECHNOLOGY PRODUCTS
1 = Very unsatisfied; 5 = Very satisfied
Electrical contractor 3.77
Security installer 3.50
System integrator/Custom installer 3.45
Major retailer 2.86
Utility company 2.42
WHERE DO YOU LEARN ABOUT NEW TECHNOLOGIES THAT ARE AVAILABLE FOR HOMES
NAHB 55.1%
Local/State home builder assn. 39.9%
Other associations 2.6%
Trade shows 59.0%
Local custom installers/suppliers 49.8%
Internet 26.6%
Trade publications 75.2%
Other 5.3%
AVERAGE RATING OF LIKELIHOOD OF HOME BUYERS TO BUY ELECTRONICS TECHNOLOGIES WITH THEIR NEW HOMES
1 = Not Likely; 5 = Very Likely
18 to 24 3.23
25 to 34 3.92
35 to 44 3.97
45 to 54 3.55
55 to 64 2.87
65 and over 2.19
AVERAGE RATING OF HOME BUYERS TO BUY ELECTRONICS TECHNOLOGIES WITH THEIR NEW HOMES
1 = Not Likely; 5 = Very Likely
Under $50,000 per year 2.09
$50,000 to $74,999 2.80
$75,000 to $99,999 3.30
$100,000 to $149,999 3.65
$150,000 to $199,999 4.21
$200,000 or more 4.36
AVERAGE RATING OF IMPORTANCE WHEN SELECTING A HOME TECHNOLOGY INSTALLER
1 = Not important; 5 = Very important
Supplier/Installer has desired brands 3.41
Completeness of offerings 3.95
Price 4.17
Opportunity for recurring revenues 3.38
Reputation 4.06
Recommendations of other professionals 3.63
Years in business 3.45
Size of company 2.84
Simplicity of offering 3.62
Experience in working with homebuilders 4.14
LIKELIHOOD OF HOME BUYERS WITH CHILDREN TO PURCHASE ELECTRONICS TECHNOLOGIES THAN BUYERS WITHOUT CHILDREN
More likely to purchase 32.3%
About the same likelihood of purchasing 48.6%
Less likely to purchase 2.5%
Don't know 16.6%
TOTAL 100.0%
LIKELIHOOD OF USEAGE OF NATIONAL RATING SYSTEM (ENABLES HOMEBUYERS TO UNDERSTAND THE TYPES AND AMOUNT OF TECHNOLOGY USED)
Not likely 34.5%
Somewhat likely 53.6%
Very likely 11.9%
TOTAL 100.0%
Note: Survey based on responses of 552 builders polled in December 2002

Source: NAHB Research Center, Inc./CEA ©TWICE 2003