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Guest Commentary: Custom Installation - a convergence of three trades? (1/7/2008)

By Gijsbert van Helden, BMB Electronics

Originally coming from the USA, 'custom installation' first took root in the UK and is now a growth industry in continental Europe too. Custom installers are primarily focused on supplying audio and video solutions consisting of multiroom AV set-ups and home theatres to both residential and commercial customers. The question is whether this 'new' trade will survive and prosper.

With more and more AV electronics available at decreasing price levels, it is certain that the quantity of electronic products in people's lives will continue to grow considerably. The fact that youngsters grow up with computers, iPods and the like, will only stimulate this as it becomes a necessity, not a luxury, to own such products.

Within this growing market, three types of trade are active in bringing electronics into people's homes and businesses:

1. Electricians (power line).
2. Custom installers (audio/video).
3. IT /telecom specialists (PCs, networks).

It is expected that each will try to expand into the others' channels and become an integrated solution provider to maximise their business earnings.

Current developments

The expansion of these three types of businesses into other areas is in fact already taking place. Custom installers for example, offer more and more integrated systems of audio, video and home automation such as lighting control, instead of just audio. Electricians are starting to offer audio solutions, sometimes integrated with lighting control, and IT companies are installing IP-addressable multimedia servers, and distributing audio and/ or video via the CAT5 network with which they are familiar.

As a distributor of a wide range of associated products, BMB has contacts with all three businesses. Experience has taught us that convergence of the above areas of expertise is still some way off. It is not realistic to assume that one installation company will install the power line network, the IT network, and multiroom audio/ video, as at this stage they rarely have all of the necessary experience and skills.

The downside of expanding into new business areas is that installers do not have sufficient knowledge with regard to the new area they are entering, and often rely on manufacturers and distributors for even basic technical support. Some installers for example, provide very complex solutions to end users, who, in many cases, would be better served with a simpler, easier-to-remember and easier-to-use system. Manufacturers and distributors can obviously respond with proper training and support, but this will always cost the installer time and money.

Future developments

It is difficult to predict whether the three trades will fully converge in the future. Situations differ per country. In certain countries such as Germany, the electrician is the main contact if an end-user wants automated light control. In other countries such as the UK, the custom Installer is the main contact for this, so it is certainly possible that specialists will survive in each of the three areas. In that case, someone will have to take on a project management role to be able to integrate all the various electronics systems so that the end-users do not end up with three different keypads that all do different jobs!

Advice to the industry

Irrespective of future developments, we are convinced that the growth of electronics in people's homes can only be accomplished by competent installers that listen to the needs of the end user and who are willing to offer good service and advice before, during and after the install. Distributors like us, need to support the installer with proper training and advice in order to ensure the correct selection of components and a trouble-free installation and experience for the customer.

Installers with superior knowledge and experience will always survive in a growth market, so my advice is invest in increasing your knowledge and make sure you deliver reliable, easy-to-use solutions to your customers.

Gijsbert van Helden is a graduate in aerospace engineering and later achieved a degree in general management at the prestigious Nyenrode Business University. He joined BMB two years ago as General Manager. Established in 1987, BMB Electronics B.V. (formerly Martek) is located in Veen, The Netherlands and is one of Europe's premier distributors of custom installation, audio visual, building automation and lighting control solutions.

www.bmbelectronics.eu