Looking for new ways to improve profitability? Then check out the world of the smart home. Matt Nimmons takes a look at the custom installation market.

Making a good profit is a challenge for any business. For electrical contractors, moving into a new sector where they can develop their skill sets with sound professional training and support can reap dividends. The results give consumers something extra, sharpen the difference between them and their competitors and add value to their own business offerings.

Take a look at the fast-growing world of custom installation. It provides real market opportunities and training support for contractors keen to diversify their business.

Custom installers specialise in the planning, design, supply, integration and concealment of automated, electronic systems for the modern, intelligent home. This embraces high-end televisions, hi-fi systems, satellite receivers and home cinemas.

From here, it can extend right through to integration with complete home networks and sub-systems that can intelligently control multi-room audio, lighting, security, hvac and even garden facilities, from lighting to watering. The systems are designed to look, sound and work beautifully within each individual home鈥檚 design scheme.

Custom installation is, in many ways, a natural business development for many contractors, especially those already involved in running Cat 5 cabling infrastructures or working with home security, lighting control and other relatively familiar electronic technologies. It allows them to differentiate and add real value to the work they鈥檙e already doing for customers with a first class and varied range of system supply, design and installation service contracts to match.

These contracts have equipment and labour elements which allow businesses to charge for their time. They have long project time frames, often extending over a year, so there鈥檒l be an order book with some predictability.

Even more beneficially, individual client spend on a typical custom project can be considerable, with six figure contracts being far from unusual, not least because the client is frequently buying more than one service from a custom installation business.

So, how exactly do you take those first steps, bringing your business forward into this exciting new market place? That鈥檚 where CEDIA comes in. CEDIA is the international trade organisation for the custom installation sector. The association spans three continents, with a global membership of almost 4000 companies.

CEDIA was founded in 1989 in the US and came to the UK in 1996, where it now boasts more than 400 member companies. These range from designers and installers of home electronic systems to equipment distributors and leading brand manufacturers.

CEDIA members are responding to increasing demand for their services, not only direct from homeowners but also from interior designers, architects and house builders. As this market growth continues, CEDIA鈥檚 task is to help members take full advantage of the opportunities by providing them with education and marketing support.

To this end, a visit to the annual CEDIA Expo, held at ExCeL, London from 25 to 28 June 2007, is a great place to start acquiring knowledge on the home electronic systems market place.

The CEDIA Expo is the industry鈥檚 showcase event where the latest hardware, the most innovative installation techniques and the best in business thinking can be found (see preview, below).

More than 100 companies will be exhibiting their wares at this year, taking in everything from speaker systems, projectors and screens to amplifiers, control systems, media centres and automated mechanisms for lifting plasmas and projectors.

The Expo is also the highlight of the CEDIA education programme, and this year will be providing more than 170 hours of training to delegates.

A number of these courses are specifically designed to take existing businesses with an established track record in one environment and equip them with the tools they need to take on the demanding but ultimately rewarding area of custom installation. Additional CEDIA courses can help you build on the knowledge and explore the different requirements of the market in fine detail, giving you the opportunity to enrol on the CEDIA professional certification programme.

Typical courses cover cabling infrastructure design and termination, TCP/IP and networking, home cinema design, audio systems and calibration and control systems. Others deal with issues such as how to communicate with wealthy clients, how to document jobs and project management.

Mark Angus moved from traditional contracting to the exciting new smart homes market, leaving the on-site world behind him


One Touch Solutions (OTS) began trading in May 2000, having had great success on various large multi-disciplined projects. OTS was created as a division of Marlin Electrical to focus attention on a specific market that we felt needed a different type of service and expertise.

We had many clients asking whether we could manage or carry out various facets of home automation, av, control and entertainment. We recognised the need to clearly identify what our market would be, the expertise that we would need to provide and whether any additional training would be necessary.

Initially, we partnered with a specialist hi-fi reseller, but it soon became clear that the firm did not have the skill sets to work in the construction industry. As a contractor, we felt that we had come from the ideal sector. But we did not jump in feet first. Instead, we flew to the US and researched what was happening over there with a far more mature market, then returned realising we had a lot to learn. So we set about talking to manufacturers and distributors, and have continued to invest significantly in developing and marketing our business since this time.

We launched One Touch Solutions at Electrex at the NEC in 2002 and it seemed we had arrived too early. This was confirmed two to three years later when many more smart home-style exhibitors arrived on the scene.

The key difference between contracting and smart homes is in the design and specification. Usually a contractor has very little by way of design input as this is typically carried out by the architect or developer. The smart home sector is completely different. More often than not, you are responsible for all the design and specification related to your disciplines, and as such, must carry the relevant design liability (professional indemnity) which has to be run continously.

In addition, the client expectation is totally different. The client demands excellent levels of communication. All requirements must be managed professionally, and anyone who speaks as they usually would on site will be found out. These clients want their smart home experts to provide them with a business experience akin to shopping in Harrods or better. Polished documentation, faultless delivery and fantastic after-sales care is the bare minimum. We are continually reviewing these areas to see how we can improve.

So, how do you go about bridging the gaps? Employing people from different sectors who have not been tainted by the cynical construction industry is a good starting point.

Excellent communication skills, good technical ability, a positive attitude and presentation skills are all key requirements. Having employed over 100 electricians over the years, I can vouch that these are not characteristics they commonly convey.

So, if you're serious about getting into the smart homes sector, ask yourself the following questions:

  • Do you have expertise and awareness of all the key areas of smart home technology 鈥� lighting control, multi-room audio, cinema, communication system and security?
  • Do you have the resources to provide design, CAD or similar to provide a well thought out design compliant with BS 7671, BS 5839, 黑洞社区 Regs, TIA/EIA Regs and audio visual distribution?
  • Do you have the resources to research all the information necessary to provide a well informed scheme?
  • Are you capable of providing service level agreements to maintain the system? (The phone goes, and the Sky box connected to your system has failed. So, who goes for the non-paying part of the job, or are you going leave the client high and dry?)
  • Be aware that this is also a dramatically evolving market with new technology coming on stream. We may all suffer from a future 鈥渙ut of the box鈥� solution...so what happens to your investment if we all get caught out?

CEDIA Expo exhibitor previews 鈥� 25-28 June 2007, ExCeL, London

Adventure Europe 鈥� G4a

Adventure Europe is demonstrating 4Sight, the remote internet control/monitoring interface for Control4, alongside the latest home automation systems from Control4 and RTI. These control systems provide single touch screen control through to whole home automation, accessed via any web browser in the world. Products include a new range of installation speakers from Acoustic Energy, A/V switchers, scalers and routers from Key Digital and security systems from DSC.

Computerlinks 鈥� A5

Computerlinks will be seeking new installers for its av and home automation solutions. Bookings will be taken for the company鈥檚 two day multimedia networking workshop, which moves from a basic understanding of IP and Cat 5 networking to a hands-on configuration of a HomeLogic automation system.

Convergent Living/Comfort UK 鈥� C23

Convergent Living will partner with Comfort UK to present innovative whole home control systems via a suite of smartscreens, keypads and touch-enhanced displays. The combination includes security, lighting via CBus, Dynalite and others, hvac, media servers, blinds/drapes, custom theatre control and IP-based net content. It promises to be a simple setup with no programming required but full custom options available.

Crestron 鈥� B8

Crestron will display the new TPMC-8X, which boasts video streaming, active biometric fingerprint recognition and Skype compatibility. Visitors will also get an exclusive preview of the brand new CEN-TIA telephone interface. CEDIA Expo represents an opportunity for installers to get hands-on experience with the complete Crestron product range.

Dynalite 鈥� H20

Dynalite is featuring three new products; the DTP160 LCD Colour Touch screen, the DDMC802 8 channel modular lighting controller and Dlight III graphical PC front end software. Dynalite鈥檚 modular DDMC802 is an eight channel multipurpose device providing a range of control technologies in one unit (leading edge and trailing edge dimming, switched on/off relay control and ballast control).

Helvar 鈥� F8

Helvar specialises in digital lighting control and technology. At this year鈥檚 CEDIA Expo the company will be showcasing to custom installers, specifiers and lighting designers its comprehensive range of digital lighting control equipment.

Illuminaire 鈥� E2

Illuminaire will bathe any LCD, plasma or flat screen in a cool halo of ambient lighting, reducing eye strain and ensuring the room maintains a warm atmosphere of style and comfort even when the screen is switched off.

Kaleidescape 鈥� D20

Kaleidescape will be showcasing its new high capacity 3U server, the latest addition to the company鈥檚 portfolio of entertainment systems,
at this year鈥檚 CEDIA UK Expo.

Lutron 鈥� D10

Lutron Electronics will be displaying its full range of lighting control expertise and launching new wireless technology. From the company鈥檚 HomeWorks system to the latest in sophisticated electronic drive technology for roman blinds, Lutron will be demonstrating the many options for controlling light in domestic and commercial settings.

Minitran 鈥� A12

Minitran will be exhibiting products from Abitana (home networking), Domintell (home automation) and Hubbell (multimedia panel and wall connectivity). The Abitana solution provides data/voice and audio/tv including hdtv distribution over a single 4 pair shielded cable without the need for co-axial cable. The Domintell solution allows complete control of lighting, heating, electrical sockets, PIR sensors and security equipment from touch screens as well as a multiroom audio solution.

NaimNet 鈥� C8

NaimNet multi-room components offer total house audio video distribution and control, enabled by advanced IP technologies. Connected by StreamNet, the fully scalable NaimNet system is equally cost effective in small apartments or substantial mansions with no practical limit to the system size. NaimNet also facilitates whole house control of lights, screens and blinds, heating, and security.

Rako Controls 鈥� C6

Rako will be launching the new PILL dimmer, which requires no neutral and is designed to fit in a standard UK back-box. Rako鈥檚 wireless lighting control system allows simple installation into existing schemes using in-line and ceiling mounted dimmer modules. Cat 5 data cables are eliminated through the use of wireless data communication.

Schneider Electric 鈥� B1

The Schneider Electric smart home offering ranges from the simple to install Delta 8 system through to the highly functional LexCom Home system. Home automation products will also be on show, with both wireless and wired solutions. As its premier home automation solution, Clipsal C-Bus will have a major focus.

Tenvera 鈥� C7

Tenvera unveils its IP Solution which allows the consumer to plug up to eight Tenvera pre-terminated fibre reels into a Stand Alone Switch (SAS), which delivers lightening speeds to every IP based piece of consumer electronics in the house through optical fibre with unlimited bandwidth.

Source

Electrical and Mechanical Contractor

Postscript

Matt Nimmons is operations manager for CEDIA.

More information on exhibitors, technology and the CEDIA Expo education programme, together with details of how to register, can be found at www.cedia-expo.com.

For a detailed seminar guide, email expo@cedia.co.uk.