SAN ANTONIO — The following bullet-point outlook was presented by ProSource president/CEO Dave Workman during the buying group’s recent Spring Meeting here.
Excerpted from his annual State of the Industry Address, Workman’s full-year forecast calls for rising housing starts and interest rates; heavy downpours of audio and 4K TV sales; and brightening skies for home automation and control.
Home Sales and Interest Rates Are Rising
• Housing starts will increase 16 percent to nearly 1.2 million units this year.
• Sales of existing single-family homes will rise 7 percent to 4.6 million units this year.
• The Prime Rate will rise nearly 14 percent this year, to a still historically low 3.7 percent, but will jump to 5.6 percent in 2016.
Market Consolidation Continues
• RadioShack files for Chapter 11.
• Sears, hhgregg continue to shed CE and majap share.
• Web doesn’t always grow vendor business, as third-party sellers dissipate sales.
Audio: Growth Ahead
• Some predictions show multi-room wireless audio growing into a $5 to $10 billion market in five years.
• Wireless audio has only scratched the surface, with household penetration at only 2 percent.
• Opportunities in legacy audio market.
Video: 4K and OLED are Real
• 73 percent of consumers who see the product express interest.
• Only 34 percent express interest if they haven’t seen the technology.
• 4.5 million units are expected to be sold this year.
Home Automation and Control
• Networking solutions are becoming a “must have” in any system.
• Lower-priced control solutions continue to broaden awareness of the category.
• Market will continue to grow for years to come, driven largely lower-priced do-it-yourself solutions.
