Custom Channel Still Growing: Parks

By Joseph Palenchar On Sep 4 2006 - 6:00am

Dallas — Residential custom-installer revenues rose 18 percent in 2005 to $7.3 billion, according to a Parks Associates first-quarter survey of installers.

Installing dealers are also optimistic about 2006, with almost 40 percent expecting their businesses to grow by more than 20 percent in 2006, with another 30 percent projecting project growth of 11-20 percent. Only 4 percent expected their revenue to decline in 2006.

The figures include hardware sales and installation charges.

Multiroom audio, home theater, and related control systems accounted for the largest share of the channel's revenues, posting sales of $2.15 billion, $2.11 billion, and $1.29 billion, respectively (see chart).

Factors driving demand for multiroom audio and home theater include more affordable systems that are broadening the market, more builders aggressively marketing the systems, and more home buyers wanting entertainment systems incorporated into the infrastructure of their home, said Bill Ablondi, director of home systems research.

``The installing dealer channel is expanding, both in numbers of integrators/installers and in the sales each firm generates annually," Ablondi added. ``We're seeing the evolution from a custom-only channel to one which is beginning to embrace prepackaged systems in an effort to expand its reach in the market," he continued.

Russound and Denon were the top brands for audio components, and SpeakerCraft was the most popular brand of speakers, the survey found.

Parks regularly collects on-line feedback from electronic systems integrators, designers, and installing dealers across the U.S.