Newsline / Building Automation Systems

System Integrators Value Choice

Integrators Find Ways to Stay Competitive in Building Automation Market

December 16, 2013
/ Print / Reprints /
ShareMore
/ Text Size+

EL SEGUNDO, Calif. — A new report from IHS Inc. indicates system integrators are placing increasing emphasis on product choice and adding value to traditional systems to better position themselves for enhancing customer satisfaction due to growing competition in the building automation market.

Revenue for global building automation systems installation and aftermarket services was estimated to be worth $26.4 billion in 2012. Small- and medium-sized independent integrators accounted for an estimated 57 percent of the overall takings.

With no single independent integrator holding more than a 1 percent market share, they must look for ways to differentiate themselves in order to win business. Such an activity is likely to take two forms: enhanced product representation and adding value to traditional service contracts.

“Integrators will choose the brands they represent very carefully,” said William Rhodes, senior market analyst, building technology, for IHS. “Many are finding that different users value varying levels of cost and specifications for the equipment, and integrators will try to cover most scenarios with their brand choice. In this case, the desire to have the latest technology must be balanced against reliability and the capability to integrate with legacy solutions.”

Integrators often will identify the products that customers are likely to be asking for in the future and start testing and analyzing them early with a view to integrating the products before demand picks up.

“Integrators also are looking for more ways to add value to the service they provide and improve their competitive positioning,” Rhodes continued. “Some integrators have started to provide building analytics to help customers save energy through either building optimization or fault detection. With building analytics, integrators are able to provide proactive energy savings, which improves customer satisfaction.”

The brands that building automation integrators represent and the products they specify will become increasingly important for integrators who want to differentiate their offerings. Adding value to traditional service contracts will be critical for integrators to win market share in an increasingly competitive landscape.

Publication date: 12/16/2013 

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

ACHRNEWS

NEWS 04-21-14 cover

2014 April 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con