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Integrators Are Struggling to Launch RMR Programs, NSCA Industry Outlook Finds

NSCA research finds that while integrators are enjoying plentiful work and profits have improved, recurring revenue has not increased.

CEDAR RAPIDS, Iowa — A newly updated industry report released by National Systems Contractors Association (NSCA), a leading not-for-profit association representing the commercial low-voltage electronic systems industry, shows that many integrators are having difficulty launching a managed services program.

The latest installment of NSCA’S Financial Analysis of the Industry report for 2018 provides 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 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 this year.

“This report offers a few interesting insights that we weren’t expecting,” says 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.

“In those cases, we encourage integrators to attend our upcoming Pivot to Profit event in Atlanta in October, which explains how to smoothly transition into this new opex world, where everything imaginable is ‘as a service,’ ” Wilson says.

The information in the Financial Analysis of the Industry provides an in-depth look at integrator operations and dynamics, and helps NSCA members better understand the financial health of their own companies (and their firm’s performance compared to others). The report also includes verbatim responses about the biggest challenges integrators anticipate in future years.

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 this report with additional valuable information and insight exclusively for their organizations.

The report can be purchased by non-members for $399, or non-members can become NSCA members for only $595 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 about the report, visit www.nsca.org 

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