Business optimism: 82% of integrators predict a positive revenue trend for 2023 and believe that this year will be an up year for business.
Supply chain disruption. A potential recession. High inflation rates. Scarce labor resources. Delayed product shipments. Managing remote workforces. Legislation challenges.
Integrators—and businesses in general—are facing some hefty challenges.
Yet, in the 2023 State of the Industry report developed by NSCA and Commercial Integrator and based on results from a survey of 150+ integration firm owners/operators, the majority of respondents rate the overall business climate as “good” or better.
A combined 35% of respondents say it’s either “excellent” or “very good,” with nearly 50% describing it as “good” with some reservations. Surprisingly, only one in 10 say the current business climate is challenging.
After 2022 numbers are finalized, most integrators (77%) will be able to say that last year was a year of growth. And an even larger number (82%) forecasts a positive revenue trend for 2023, believing that this year will be an up year for business. Only 5.9% of survey takers believe that 2023 will be a down year (and, even if it is a down year, no respondents forecast a revenue decline that exceeds 10%).
With everything integrators are up against, what’s fueling this sense of business optimism?
We discussed that very question during our State of the Industry webinar—and here’s what we came up with.
AV Integration Is More Mission Critical Than Ever
We’ve said it before, and we’ll say it again: The solutions and services that integrators offer to customers are more valuable now than ever before. The pandemic helped accelerate digital transformation in nearly every industry, and businesses of all kinds are seeing the value of technology—especially as it relates to overcoming some of the hurdles we mentioned earlier (finding qualified labor, managing remote workforces, supply chain issues, etc.).
Clients in every market are focused on the technology they need in order to provide healthy work, patient recovery, and learning environments; support new types of collaboration and communication strategies; sell their products and connect with their own customers in new ways; and much more.
Because most companies aren’t equipped to forge their digital transformation journeys alone, the partnerships integrators provide have become mission critical.
Technology Is Being Recognized as a Difference-Maker
While our recent Electronic Systems Outlook Winter 2022 report predicts an overall downturn in construction starts and renovation for 2023, there are still industries that plan to invest in construction and technology, supporting this business optimism. Healthcare and manufacturing are two examples.
Future investments in healthcare are expected to remain strong as demographic shifts, maintenance needs, and new technologies impact health services. All hospitals are pushing to improve the patient experience and streamline workflows to make the most of their clinicians’ time—and this is being accomplished through technology.
Due to combined trade and policy efforts to stimulate domestic production, it’s predicted that the demand for products manufactured in the United States—including critical components and technology—will increase in 2023, leading a manufacturing revival.
To keep up with demand while managing labor shortages, manufacturing facilities will have no choice but to rely heavily on the use of robotics and automation.
Large retail owners will continue to renovate space to become more warehouse-like and implement automation to accommodate e-commerce-related offerings.
NSCA Is Your Resource for Business Success
Sales funnels and project backlogs look strong for integrators. Those that can meet their clients’ abundant and evolving needs are likely to have a great 2023.
And don’t forget: NSCA is here to help you along the way. Our research, webinars, roundtables, tools, and other valuable resources can help you do everything more efficiently and effectively—from calculating labor units and determining true profitability on a job to recruiting and retaining talent.