NSCA Reports on Integration Industry Performance: Increased Profits; Flat RMR
The National Systems Contractors Association (NSCA), a not-for-profit association representing the commercial low-voltage electronic systems industry, released an updated "Financial Analysis of the Industry" report for 2018, providing information that systems integrators can use to benchmark and compare expenses, profits, sales and other data against industry peers of similar size and business focus.
The "Financial Analysis of the Industry" report details the industry’s performance based on data collected from more than 100 integration firms that participated in the 2018 Cost of Doing Business survey earlier in the year. The information in the report aims to provide an in-depth look at integrator operations and dynamics, and helps companies better understand the financial health of their own companies (and their firm’s performance
compared with others). The report also includes verbatim responses about the biggest challenges integrators anticipate in future years.
“This report offers a few interesting insights that we weren’t expecting,” said Chuck Wilson, NSCA executive director. “First, the industry is experiencing an increase in backlog, indicating that there’s plenty of work available. Profits are also up from the last report. Surprisingly, however, RMR revenue hasn’t increased. Many integrators are still struggling to get their managed services programs off the ground.”
According to Larry Italia, former vice president of Sound Image’s integration division, “Early on in my position as vice president of Sound Image’s integration division, I needed to conduct a financial analysis of our division as a key component of my business plan. I had our numbers, but needed some benchmarks for comparison to see where we sat in respect to fellow integrators. The "Financial Analysis of the Industry" was an invaluable resource for me. It was comprehensive; virtually any metric I wanted to benchmark was there, i.e., headcount, revenue per employee, bid versus design-build, etc. In particular, the financial data — SG&A, balance sheets, etc. — was an important tool for me.”
The NSCA "Financial Analysis of the Industry" is free for gold and platinum NSCA members. Members who completed the Cost of Doing Business survey receive a customized copy of the report with additional information and insight exclusively for their organizations. The report can be purchased by non-members or non-members can become NSCA members and receive the report as part of their membership, which offers access to discounted education and training opportunities, updates on regional and national government affairs issues, free monthly industry webinars, business tools and resources, and other exclusive industry research.
For more information, visit www.nsca.org or call (800) 446-6722.