Smart Thinking

The ever increasing demand for smart home technologies and their attendant media, entertainment, control and transaction services are creating new opportunities for electrical contractors.

For the next five to ten years the most important drivers for the smart systems market development are expected to be:

• equipment suppliers will develop new technology and products, which will give new services, improvements in efficiency and convergence between different fixed line, mobile and broadband networks;
• increased customer awareness about the opportunities.

Many different systems are available for intelligent buildings and electronic smart installations. The systems can be small and simple or big, advanced and complex, depending on the applications and client needs.

The range of applications needed often determines what kind of technology is necessary. For example, with existing high-end multi-purpose systems, the typical use is to interconnect complex technical applications in buildings. It is possible to gain advantages with regards to the project installation and utilisation and reduced costs as various systems may share the same infrastructure, and in many cases the same components.

Electrical contractors have a position in the value chain between equipment suppliers and end-users. They are often in a position to select the technology they want to use in the service they provide to their end-users.

On this basis the industry may be optimistic about the future, but there are some serious challenges and potential threats to electrical contracting for the next few years.

Industry challenges

Often modern smart system installations use less cabling and coupling material, which results in less labour to carry out the electrical installations.

The project and planning phase becomes an increasing part of the product and after the installations are carried out, customers need supplementary support for training. Many customers need facility maintenance and management services. An important issue is how the electrical contracting industry can keep the customer locked in long-term relationships?

Electrical contractors represent a traditional craft. Many firms focus purely on cable system installation, so how can the typical contractor avoid being stuck in the middle between the customers and suppliers of knowledge-intensive parts of the smart installation market?

Selling, planning, installation and maintenance of smart systems often include knowledge as an important contribution to added value and profits. Service based on knowledge, not only hardware-components and man-hours, justifies a higher hourly rate. This could lead the industry away from the head-to-head price competition we see today.

An important issue is therefore how contractors can acquire and develop necessary knowledge and skills in planning, installation and maintenance as well as sales and marketing?

Home market potential

Today’s homeowner expects more from their house than just a living space. The home of the future may also be an office, school, shopping centre, home theatre and secure living space.

The basic residential cabling for low voltage applications in most homes is based on 25 year-old technologies. Many homes have flat or quad four-conductor cable to provide the telephone service. Most also have co-axial cable to provide connection to the incoming cable tv service.

The design of the residential cabling system historically has also been inadequate. Many homes have been designed with daisy-chained cabling run in series from one telecomms outlet to another.

With the proliferation of Broadband Internet access, satellite and community antenna television, homeowners are networked in an environment dominated by two-way, real-time communications. In the future, the electronic smart home will require a more demanding cabling infrastructure to provide the homeowner with access to a broad range of high-speed communication services.

The residential customer needs up to four primary, low voltage services in their future home: telecommunications/ computing, entertainment, security and automation. The demand for these services revolves around work, learning, and lifestyle.

In terms of work, a large percentage of the European workforce now calls their home their office, while millions more work at least part-time from home. Many of the telecomms applications taken for granted in the office are likely to be missing in the home.

In terms of learning, many children are being home schooled, driving the demand for Internet access as a primary teaching tool. For those in college, or returning to college part-time while in the workforce, the home has become the classroom.

Many homeowners want their homes to provide convenience, safety and entertainment. Convenience is provided by lighting and hvac control, with the added benefit of security and energy efficiency. Safety is provided through monitoring homes against intrusion, fire and other hazards. Entertainment needs are met through pre-installed audio and home theatre systems.

Builders and owners often desire a single-source contractor for all integrated solutions. In many European countries leading suppliers and industry organisations have been advertising smart home electronic systems since the late 1980s. Electrical contractors may be capable of providing the services in this new market.

Residential homes

Residential homes for the elderly and functionally disabled is also a growing market for electrical contractors. This is an area where modern smart installations can be very useful because of the functionality of this technology.

Smart systems can provide cost-effective automation of lighting, heating, security and safety, communication with family, neighbours or fire/police departments, and other functions such as automatic control of electric stoves, coffee machines and other equipment with potential fire hazards.

Types of surveillance systems can be of interest, such as ‘in-bed controls’ where sensors can detect when old people with health problems such as Alzheimer’s get up in the middle of the night. With proper use of a smart system this can be detected and notification given to family or neighbours.