Despite Downturn, Builders
Still Offer Solutions: Study
By TWICE Staff On Apr 5 2010 - 3:01am
ARLINGTON, VA. — Builders are
still offering technology solutions to consumers,
despite the sharp drop in housing
starts, according to a new Consumer
Electronics Association (CEA) study.
In CEA’s 8th Annual State of the
Builder Technology Market Study finds
positive news in the home-technology
market amid the downturn in the U.S.
housing market. CEA also released a
qualitative analysis report, The Home
Technologies Market — An In-Depth
Look at Home Builder Perceptions and
Both studies are meant to provide
home-technology professionals with a
better understanding of homebuilders’
perceptions of and motivations for installing
“Home technology, like the housing
market, hit bottom in 2009,” stated Steve
Koenig, CEA’s industry analysis director.
“Despite the sharp drop in housing stats,
builders continue to offer technology solutions
to their customers. Builders view
technology as a potential key to growth
as the economy improves, and many have
cemented home technology in their portfolio
of home features and amenities.”
Twenty-eight percent of builders said
home technology was very important to
marketing new homes in 2009, up from
25 percent in 2008. In a challenging housing
market, builders looked for solutions
to add value to a home, CEA reported.
One-quarter of builders (25 percent)
said home technologies positively impacted
their revenues, up from 18 percent in
2008. The study found that 8 percent of
builders stated home technologies greatly
increased their revenue, the highest level
recorded in the history of the study.
CEA recommends builders work with
system integrators/electronic systems
contractors (ESCs) because of their focus
and expertise on home technology
and ability to help sell home technology
to potential customers.
System integrators/ESCs are making
inroads with builders, and when combined,
represent 67 percent of contractors
used to install home technologies.
When selecting a service provider, builders
act like consumers. Reputation (75
percent), experience working with builders
(75 percent) and completeness of offerings
(73 percent) closely follow price
(82 percent) in ranking the factors for selecting
a home-technology installer.
The State of the Builder Study was
conducted in November and December
2009. The Home Technologies Market
study was conducted in January. Both
were designed and formulated by CEA.
The reports are available free to CEA
member companies at http://members.
. Non-members will be able to purchase
them at http://mycea.ce.org
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