Many industries have one company that stands head and shoulders above its competitors when measured in revenue, geographical reach and marketing clout. There’s Best Buy in consumer electronics; Nike in sports apparel; McDonald’s in fast food.
With projected 2011 revenues of $550 million via 5,180 integration projects and 32 locations in three countries, Tampa, Fla.-based AVI-SPL is that company in the commercial integration industry. Since Audio Visual Innovations (AVI) merged with Signal Perfection Ltd. (SPL) in 2008, the mega-integrator has cast a large shadow over the industry.
AVI-SPL seems to savor its role as the biggest face in the commercial integration industry. For instance, AVI-SPL seems committed to raising industry standards and creating more awareness of certifications. This is self-serving because it creates a competitive advantage over smaller companies with less training resources, but it also elevates the reputation of any well-trained integrator over that of ill-prepared, bid-and-chase companies.
AVI-SPL Company Profile
Primary Location: Tampa, Fla.
Additional Locations: 32 in U.S. (plus offices in United Arab Emirates and Mexico)
Principals: Martin Schaffel, executive chairman; Chad Gillenwater, vice chairman; John Zettel, CEO; Steve Benjamin, executive VP; Don Mastro, executive VP, integration sales; Michael Bradofino, executive VP, video communications and unified collaboration
2010 Total Revenue: $506 million
2010 Revenue From Commercial A/V systems Installations: $314 million
2011 Project Installations: 5,180 (projected)
Years in Business: 31
Employees: 1,400
Top 3 Vertical Markets: Corporate, Government and Education
Advice: “Stick to your core competencies. Sometimes we’ve gone outside of our key areas and we didn’t perform as well. Second, recognize it’s an investment to deliver on what you sell. Servicing the customer is critical and it’s expensive. But to cut corners is ultimately detrimental.”
AVI-SPL also seems to relish its role as a trend-setter, or at least a trend-recognizer. The integrator was out early putting resources behind telepresence and digital signage solutions, points out Don Mastro, executive VP of integration sales. Meanwhile, the behemoth company proves it’s more nimble than most by paying more than lip service to IT/AV convergence.
“The way we embrace it today will affect our success greatly in years to come,” says CEO John Zettel. He is talking about embracing IT … but Zettel’s words could easily apply to the way AVI-SPL embraces the industry affects its competitors.
There’s some truth to that, acknowledges Chuck Wilson, executive director of National Systems Contractors Association (NSCA), of which AVI-SPL is a member. The high-profile integrator’s projects, often covered by trade publications and websites, sometimes serve as an industry crystal ball.
Integrator of Year Coverage
Integrator of Year: AVI-SPL
Best AVI-SPL Installs of 2011
Customer Service Integrator of Year: Signet
Digital Signage Integrator of Year: ANC Sports
System Design Integrator of Year: HB Communications
How We Select Integrators of Year
Photos: Top AVI-SPL Installs of 2011
“They’re willing to take on projects that others can’t because [others] don’t have the resources,” Wilson says. “In a very scalable manner, they’re giving [smaller integrators] a glimpse at what they can be doing on a local level in a year or two on projects that are the right size for their company. It gives them a chance to get ready for that. I see them [AVI-SPL] not as a standard, but as blazing the trail for the type of work that can be done on a more manageable scale.”
AVI-SPL’s Industry Impact
There is a perceptual challenge that comes with being the top dog, as opposed to the smaller competitors serving as underdogs. A David-versus-Goliath culture develops, but, to some degree, AVI-SPL seems to have eluded that in the commercial integration industry.
Perhaps because AVI-SPL is a commercial integrator. In contrast, the residential integration community - whether folks admit it or not - view Best Buy and its custom installation efforts with Geek Squad as a Goliath, if not a pariah preying upon product categories it somehow doesn’t deserve.
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