Study Finds Home Technology Preserves Builder Profits
Despite a weak economy and the housing market downturn, builders have not abandoned home technologies, according to the findings of the “7th Annual State of the Builder Technology Market Study” released earlier this month by the Consumer Electronics Association (CEA).
Seven in 10 of the builders polled (71%) reported that technology had helped them preserve home renovation revenue that might otherwise have declined this year because of the down economy — an increase of 10 percentage points from last year’s survey results.
The study found that builders are finding more selling points in entertainment-related technology features, which corresponds with the growing consumer trend to stay at home in light of the economy. Among their entertainment-related offerings, 69% of the builders said they had increased multi-room audio and 74% reported an increase in home theaters in 2008. Home theater installation was up eight percentage points in 2008 and was the only category that did not decrease or remain the same in overall installations.
Seventy-one percent of the builders participating in the survey said that trade shows have become the leading source for builders to find information on home technologies. In a declining market, the study found, trade shows offer a one-stop shop for product/training information and are a cost-effective resource for builders to learn about technology offerings.
“Home technology is poised to take off as the economy and housing markets improve,” said Steve Koenig, CEA’s director of industry analysis. “Builders are aware of the value of home technology and have increased their marketing efforts,” he said, “suggesting builders are leaving no stone unturned to help move inventories while recognizing the importance of home technology for consumers.”
The Builder Technology Market Study was conducted last November. It was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry.
The complete study is available free to CEA member companies and can be purchased by non-members for $699 at myCEA.CE.org.
A webcast presentation of the study is scheduled for Wednesday, April 8, 3:00-4:00 p.m. EST. To register, e-mail Steve Kidera, or call him at 703-907-4358.
Headquartered in Arlington, Va., the Consumer Electronics Association is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB.
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