The retrofit and home improvement market could be a largely untapped gold mine for custom installers seeking new opportunities.

Anyone can try to do retrofit projects, but without experience, training and specialised tools there’s a good chance that mistakes will be made – leaving customers with even more work to do.

CEDIA US technical training director Jeff Gardner reports that member companies specialising in retrofitting and remodelling are busier than ever.

“It makes sense that all member companies be better prepared to take advantage of this market segment,” Jeff says.

CEDIA US reports that several member companies specialising in smaller retrofit and remodelling projects are having their busiest year ever.

A report by industry analysts Parks Associates and EH Publishing says revenue from the US home systems integration channel is expected to increase 78% between 2007 and 2012, to about US$17.4 billion ($18.5 billion).

In Australia, Graeme Philipson of Connection Research says no one has done a definitive study on the size of the smart-home market in Australia, and information on costs and returns is particularly scarce.

Jeff says integrators that have been servicing a wide range of project types – large, small, new construction and remodelling – have a broader base to rely on when one aspect slows down, as is now the case with mid-priced new construction.

“The potential that is linked to having strong expertise in retrofit installation is the same as it is for any discipline – the ability to make up for lost revenue in one category by promoting services in another.”

The US market for new housing is soft and sale prices for existing dwellings are down, so many families are choosing to stay put and do some upgrades.

“An important part of any remodelling or addition is usually the incorporation of newer entertainment technologies – media room, theatre, automated lighting – and ultimately the integration of all these subsystems into one control system.

“With a little extra planning and resourcefulness, it is possible to do a full-blown system in an existing home or retrofit project that is on the same level as those found in new construction.”

In 2006, 59% of Australian households (4.4 million) undertook some kind of home improvement project, according to building industry forecaster BIS Shrapnel.

In the year leading to 31 December 2007 the Housing Industry Association (HIA) reported that the average value of a renovation had gone up 11% to $96,000.

The potential for custom installers to cash in on these projects could mean the difference between success and failure.

Parks Associates channel research director Bill Ablondi says the high-end AV market is going though an important transition.

“Digital content is approaching the performance and quality of analogue media, with the added flexibility only digital content offers.

“Reduced costs coupled with advances in wireless and powerline networking technologies are also expanding the retrofit portion of the market, at a time when mid-market construction is slowing down.”

So what do installers need to know to properly complete a retrofit project?

Grayson Evans is founder of Arizona-based company The Training Dept and a CEDIA certified instructor. He has taught several courses at CEDIA’s University and Expo on retrofit installations in the past 12 years.

“Other than running cables in existing walls, retrofit jobs are no different from new construction,” he says.

“The biggest obstacles are always in the mind the home-owners, like convincing them that you are not going to make a giant mess in their home, cables and equipment can be retrofitted without using a sledgehammer, and the walls and ceiling will not need to be repainted.

“Most homeowners don’t understand that professional retrofit techniques will not make unnecessary holes in walls and ceiling.”

Grayson has written two books in the home automation field and hundreds of industry magazine articles. He knows of no limitations on what can be achieved in a retrofit installation.

“A common misconception is that these projects are too hard, but they are only too hard if you are not properly trained.

“Another one is that they are too time consuming, but you can do a retrofit job faster than the equivalent new construction job. If you can’t, you need more training.

“Retrofit projects have several advantages over new construction. They can be accomplished in one trip to the site, there is no waiting through pre-wire, initial trim-out, and final trim-out stages, you can run cables anywhere you want, and you don’t have to worry about other trades.”

Through The Training Dept, Grayson regularly conducts the CEDIA residential retrofit installation workshop (CEDIA EST031), which covers the basic techniques of retrofit installation of telecomm, AV and low-voltage cable in a typical dwelling.

The course includes retrofit installation planning and installation techniques for different types of construction.

It starts with an overview of typical house framing and construction to familiarise the attendee with right and wrong locations for running wires, then covers all the categories of special retrofit tools needed to do a first class retrofit and how to use them.

“Taking a course is cheap – anyone would be foolish not to get some training before trying to do retrofit installations,” Grayson says.

“Attempting to learn by apprenticeship, that is, working with someone who supposedly knows how to retrofit, is time consuming and wasteful. This just tends to pass on bad techniques.”

One of the biggest mistakes an installer makes is insufficient planning.

“You must do your homework about a job. Know what’s in each wall and floor before starting, and have a careful plan with a back-up for each cable run.

“Also, don’t promise what you’re not trained to do. Retrofitting takes courage, really.

“Finally, you must get training on how to use the tools and practice someplace other than the customer’s house. Few things are more painful than watching some guy trying to pull a cable attached to a fibreglass rod around a sharp bend.”