After a bumpy start to 2025 due to turbulence from tariffs and political instability, integrators are increasingly optimistic about the industry, according to a Thursday panel at CEDIA Expo/CIX 2025.
“The State of the Industry” brought together CEDIA representatives and industry leaders to discuss the outlook for the rest of the year in an event moderated by Zachary Comeau, editor of CE Pro magazine.
“There’s not a lot of economic headwinds that we’re hearing about right now,” said Patrick McCarthy, executive director of Azione Unlimited, a smart home association in Chester Springs, PA.
Daryl Friedman, global president and CEO of CEDIA, also said the economic outlook has improved in the second half of the year. “It’s been a roller coaster of a year,” he acknowledged, but added that it’s “ending up a lot better.”
The majority of integrators say business is “excellent” or “very good,” according to a sentiment survey conducted by CEDIA. The Professional Smart Home Sentiment Survey also found that 72% of integrators are planning to hire additional technical staff in the next 12 months.
Experts on the panel echoed the optimism of the survey results. Jim Pearse, president and CEO of Prosource, said the commercial side of the integration industry felt the effects of tariffs through the delayed timing of some projects. “There were an awful lot of projects that maybe the customers paused to commit to, and now they’re beginning to come through,” Pearse said.
In contrast, the residential side of the integration industry experienced a rush to buy products before tariffs went into effect. “We saw kind of an uptick in the second quarter where people were frontloading projects due to the tariffs,” said Chris Whitley, executive director of the Ellipsys Commercial Technology Group based in Scottsdale, AZ.
While business continues to be strong for integrators, panelists recommended keeping an eye on interest rates and the larger market for home builders.
“Having interest rates come down will certainly spur homebuilding,” said Hank Alexander, director of Oasys Residential Technology Group. Lower interest rates could also inspire homeowners to move to larger houses and upgrade their technology, he added.
The next trend on the horizon is AI technology, and McCarthy recommended that integrators get ahead of the curve. “Your clients are going to start asking about AI,” he said. Pearse also advised attendees to “look hard at how AI is deployed through these products.”
