The 2025 NSCA Financial Analysis of the Industry report offers systems integrators targeted insight into core business fundamentals. NSCA says the 2025 report “provides valuable, industry-specific information for systems integrators on key business fundamentals,” covering markets served, technology portfolios, sales patterns, workforce distributions and company financial health. Published annually, it serves as a primary reference point for integration firms nationwide.
Image courtesy of National Systems Contractors Association (NSCA)
This 17th edition draws on data gathered from 99 integration firms in 31 states, three Canadian provinces and Puerto Rico. NSCA notes that it “continues to deliver updated intelligence for integrators that want to refine their business models and stay competitive,” according to the announcement.
NSCA adds that these insights can help integrators make data-driven decisions and refine strategic planning.
Key findings from the survey include:
• Shift in sales approach: Negotiated and direct sales now bring in about 72% of total industry revenue as competitive bidding declines.
• Margins and liquidity gains: Amid economic unpredictability, median gross profit margin climbed to 34.2%. Cash reserves also rose, demonstrating stronger liquidity.
• Employment contrasts by size: Smaller firms often operate at or above capacity, whereas larger companies report underused labor and have been adjusting headcounts to match project flow.
• Recurring revenue peak: Managed services and subscription-based offerings now make up the largest share of income recorded in this study’s history.
NSCA collaborated with ESG Professional Accountants, an independent research firm, to collect and anonymize all survey responses. This partnership secured confidentiality and validated the data.
The association adds that the data “provides an in-depth look at integrator operations and dynamics,” helping members benchmark performance and assess their financial position against peers.
Participants often leverage these benchmarks to guide investments in training, technology improvements and service expansion.
Systems integrators can apply the findings to:
• Compare financial ratios against industry medians and percentiles to spot strengths or gaps, such as margin performance or debt levels
• Adjust pricing and bidding tactics in response to market shifts to capture higher-value contracts
• Align staffing levels or optimize labor deployment using data segmented by firm size
• Identify cost inefficiencies, refine material sourcing and tighten job-cost tracking
• Review post-project evaluation methods and recognition programs by examining practices used by top performers
NSCA members will have access to a webinar on Nov. 18, where NSCA executive director Tom LeBlanc, Solutions360 president Joel Harris and AVI Systems chief financial officer Chris Mounts will break down the 2025 data.
“The data in this report can’t be found anywhere else in our industry,” says LeBlanc. “Our members use it to see where they excel and where adjustment is needed. Only when you understand where you stand among your peers can you begin to target areas for improvement and prioritize actions that build a healthier, more competitive business.”
