Even though the general U.S. economy has been a bit unsteady during the first half of 2024, more integrators are expecting a stronger second half of the year. According to the first-ever D-Tools Integrator Sentiment Survey, two out of every three integration companies (66%) expect to experience revenue growth for the second half of 2024. Moreover, nearly one in four (23%) is anticipating double-digit revenue growth, with another 25% of integrators expecting growth between 6% and 10%.
On the flip slide, one in five integrators (20%) forecast revenues will be flat for the rest of the year, while 15% predict sales will be lower for the next six months.
The optimism heading into the second half of the year is much welcomed, as integrators report the first half of 2024 was not quite as strong. Indeed, only half of all integration companies (52%) indicated they had revenue growth from January through June 2024, according to the survey. Only 16% of integrators reported “significant” revenue growth for the first half of the year, while just over one-third (36%) said their revenues increased “slightly” in the beginning of the year.
More Hiring, More Product Categories on Tap
Hand-in-hand with revenue growth comes the need for more employees. According to the D-Tools Sentiment Survey, two thirds of integration companies (67%) plan to hire more employees. Of those, 17% say they plan to hire several personnel.
So, what is driving the anticipated growth? A majority of integrators (62%) say they plan to expand into new product categories or markets in the second half of the year. That means categories such as lighting fixtures, power production/management and security are likely being studied by companies for revenue growth. Most integrators report they plan to move into new categories cautiously. Only 9% say they foresee “significant” expansion, while 53% say their new business development will be “moderate.”
There’s nothing new in the list of the biggest obstacles integrators face. Respondents cite “overall economic uncertainty/weak demand” as the No. 1 barrier to growth. The tight labor pool, slow new-home construction market and inflation (both for labor and products) are also noted as problems.
The D-Tools Sentiment Survey was conducted between May 31 and June 10, 2024. The survey was sent to users of both D-Tools System Integrator (SI) and D-Tools Cloud, and 261 usable responses were fielded.
