Profiting from Automation
by David Rodarte
Homebuilders who aren't interested in offering technology integration as part of their business models are now firmly in the minority. This point is proven by research from the Consumer Electronics Association (CEA)'s annual "State of the Builder Study," which was compiled in conjunction with the NAHB Research Center. The study found that 85 percent of builders believe technology is important in the marketing of a new home.
The applications of this technology- entertainment, whole-home control, security and more-are tremendously compelling to homebuyers, especially the fact that it can come as a feature of their new house instead of them hunting for and having it installed aftermarket. Clearly, in these highly competitive times, today is the right time to embrace technology if you haven't already. In fact, with new retrofit technology on the way, the right time may even be yesterday!
Wiring for Technology
In most cases, structured wiring is a must for the 21st century home, bundling all of the communications wiring into one coherent system. These bundles can include wiring for home networking, telephone, video, audio, alarms, infrared remote control and more. Of course, running these wires before the walls are closed is more cost-effective and less disruptive than ripping up walls to do so at a later date. These bundles also serve as a Trojan horse, giving builders the opportunity to approach the homebuyer with new technological offerings as they become available.
Structured wiring has some inherent advantages over more "slapdash" wiring installations. With all of the cables running back to a central wiring panel, it's easy to change how each individual cable is connected and what it is used for. Structured wiring also makes troubleshooting a snap since each of the cables can be isolated and tested for problems. Furthermore, because all the cables run back to the central wiring panel, they can all be connected to the same source without the need for some outlets to pass through more splitters and splices than others-and this greatly improves the consistency of signals.
If you're not willing to commit to structured wiring, a new option that leverages the electrical wiring in a home to transmit audio, data and more is on the horizon. This technology will allow you to retrofit your existing housing inventory at a reasonable cost and with minimal disruption to add a fresh twist for wooing homebuyers. The system will also provide an alternative way to offer some technology to homebuyers if you aren't yet investing in full-blown structured wiring for new builds. A multi-room audio system using this technology will be available later this year with other solutions certain to follow.
Find Your Digital Path
Although the CEA-NAHB study found that homebuilders believe technology is important, that doesn't make it easy. The complexity of choosing and installing home technology systems and products has always been the biggest hurdle for builders, and it remains so.
Low-voltage integration of consumer electronics products requires specialized skills, especially when dealing with proprietary technology platforms, rapidly changing technologies and user preferences, and the unique programming and configuration models many systems employ. Acquiring these skills-either by partnering with a local electronic systems contractor (ESC) or hiring your own talent-can be expensive and time-consuming. The builder just wants it to be profitable.
The current slowdown is giving us all a chance to reflect, reconsider and reboot what we do and how we do it. Now is the time for homebuilders to consider what kind of technology offerings their potential homebuyers want. Once you answer that question definitively, you can build a new, updated strategy from there-before you make any investments that may not be as focused and as efficient as they should be.
Homebuyers in 2009 are far more sophisticated regarding technology than they were even five years ago. Smart phones, multi-room entertainment systems, networked PCs,HDTVs, iPod docks,GPS systems and powerful universal remotes, among other products and concepts, have changed the way homeowners and home buyers view technology. It's no longer considered a convenience or a luxury to be "connected;" it's something people expect. And it's something that can and should be profitable for homebuilders.
The first step in determining what your potential home buyers will want is to identify what they care about most. Is it security? Entertainment? Energy management? Convenience? Twenty-something newlyweds will probably be more excited about streaming music from their iPods throughout the house, while a five-person family may dream of a dedicated home theater for movie nights and a retired couple may wish for the ability to monitor security cameras from any TV in the house. Get a good sense of your target demographics' needs, and explore and build your technology strategy from there.
In-House or Partnerships?
One way larger builders are adding technology integration services is by hiring ESCs. These professionals often are members of the Custom Electronics Design and Installation Association (CEDIA), the main trade association for ESCs, which provides them training, certification and education. Both CEDIA and the CEA offer a wealth of educational information for builders that includes best practices for technology installation.
Ideally, most homebuilders would like to employ one or more in-house ESCs who could control the customer experience and installation process. Unfortunately, not every company has the resources to expand in this way. Long-term partnerships with reputable ESCs are the next best option.
Hiring an unfamiliar "tech guy" at the homeowner's request who does the electronics and wiring installation, collects his check and is never heard from again, can be a fiasco for a homebuilder. The builder who is left holding the bag may simply not be equipped to troubleshoot any type of A/V or electronics systems issues. But homeowners don't want to hear this.
Before working with any independent ESC, require that they will be responsible for all follow-up service calls. Also be certain that the ESC will provide support over the long haul. By building a strong partnership with an ESC, you can gain a loyal and trusted A/V specialist who is on call to provide punctual, effective service-rather than scrambling at the last minute to find someone to consult with, or even worse, leaving it in the homeowner's hands.
Fortunately, collaboration between CEDIA, CEA and NAHB is at an all-time high and each trade group provides resources for pairing up homebuilders with ESCs on a local level. Early involvement in projects allows the ESC to plan progressively not only with the builder but also with the other trades to avoid costly and unnecessary changes to wiring, closet/outlet placement and other matters that can affect costs as well as electronics performance.
Regardless of whether services are contracted or offered in-house, it's wise for builders to have an understanding of "good, better, best" technology solutions for their customers. By offering coherent and appealing electronics packages, you can better stay on time and on budget and avoid customization in all but the largest luxury homes where price is secondary to the home buyer.
Whether through an in-house staff or a partnership with an independent ESC, homebuilders need to find the technology models that work best for them financially and logistically. Ignoring technology is no longer an option when dealing with today's home buyers. Fortunately, those in the electronics industry are willing and able to help builders get where they need to go, both in your upcoming projects and in making your existing inventory an easier sell.
David Rodarte is President and Chief Operating Officer of NuVo Technologies, a manufacturer of multi-room audio systems. He serves on the board of the Consumer Electronics Association (CEA) TechHome Division and is the current Vice Chairman for the CEA Homebuilder Initiative to stimulate consumer electronics sales during new home construction. As a member of CEA's TechHome Board, he serves as liaison, coordinator and promoter of CEA TechHome to the NAHB.
www.nuvotechnologies.com
