1. How is the energy crisis affecting the home automation industry?

Escalating energy costs are causing consumers to become more aware of the energy management capabilities of automation systems. They are familiar with standard programmable thermostats so it's not a big jump for them to understand the increased energy savings when these thermostats communicate with the automation controller. By tying them together, the temperatures can be automatically set back when the security system is armed. Additionally, lights and small appliances can be scheduled by activity, time of day, or room occupancy. With HAI's Advanced Control Programming, the homeowner doesn't even have to think about it, the system automatically knows to turn on the outside lights if the front door is opened, and its after 6pm. It's all about saving without suffering. It's the very essence of what home automation is all about. Combine the benefits of enhanced comfort, maximum energy savings, and convenience with the fact that the system can pay for itself over time with the money saved and home automation becomes a cost-effective tool to combat the energy crisis.

2. What's the biggest trend in home automation right now?

The biggest trend in home automation at the moment is increased connectabilty and affordability. Homeowners expect reasonably priced products that offer intuitive control of their homes with simple, yet comprehensive access and control. HAI's Omni family controllers and Web-Link II software, provide this convenience with real-time video surveillance over the Internet, wireless access over PDAs, and the ability to receive emails based on programmed events. Because of the proliferation of the Internet, consumers not only understand and appreciate these benefits, they now expect them. Especially in new homes. At this point, if someone purchases a new home without an integrated security and home automation system, that home is technologically obsolete the day they move in.

3. What is the single biggest change you've seen in the past 17 years that you've been involved in the home automation industry? What's surprised you the most?

I am delighted with the cooperation between manufacturers. It is allowing "connectivity" between products that were previously "unconnectable."

4. What skills and experience are necessary to become a Home Automation Dealer / Installer?

A successful home automation dealer needs to know the basics of several systems: security, hvac (heating and cooling systems), wiring for lighting controls and telephone wiring. Most low voltage technicians have these skills. Additionally, knowledge of home networking and computer operating systems (Windows) is important if a customer wants to do Web-Link. A very important skill for all installers is customer relationships, and respect for the customer's property and viewpoint during installation.

5. What's the most important factor an installer/dealer should consider when choosing a home automation product line?

There are several important elements that an installer should look for when choosing a product line. It is an important investment of both time and money by an installer to learn a new product and therefore should be carefully evaluated. A good business strategy is for an installer to limit the number of brands he carries and become an expert in them. By simplifying the product offering, an installer can consistently deliver with confidence. Installers must do their homework and choose products and manufacturers with proven track records that have usable functions and reasonable price points. Ask others in the industry, check for longevity, product innovation, training, technical, marketing, and sales support. Verify Industry organization memberships and standing, and finally devote the time and resources necessary for long term success.

6. What is the best way for a homeowner to go about his or her home automation project? Could you outline the steps from start to finish?

HAI's installation manuals include a planning section for the installer and customer. In general, plan the security system, lights to be controlled, thermostats to be controlled and locations of the consoles and equipment. Then install the system and program and test it.

7. What's the most important factor a homeowner should consider when choosing a home automation product line?

Reliability. An automation system will be expected to provide security and reliable operation for a decade or more. Reliable equipment from a proven manufacturer, combined with a knowledgeable installer will be the best choice.

A homeowner should investigate on the Internet, read product reviews in magazines and most importantly, carefully choose his installer. Is the installer a member of any of the professional industry associations? What training and how long has the installer been in the business? When evaluating the product/manufacturer, the homeowner should verify that the manufacturer has a stable and long-term track record. Are the products easy to understand and operate? Can they be expanded down the road if the homeowner's needs change?

8. What do you see as the biggest area for growth in the home automation industry? What do you think the market growth will be over the next 5 years?

The biggest growth area will be for low cost, simple systems that integrate security, heating, cooling and lighting control with telephone and Internet access and control. The light goes on in your car when you open the door; now it's the house's turn. Systems that are cost effective and reliable will soon be in every home built.

9. How does Home Automation Inc. plan to capitalize on the growth of this market?

By doing what we've done successfully for the past 17 years. Designing simple to understand and install products that provide sophisticated, innovative and reliable automation at a reasonable price.

10. How is the industry going to go about educating consumers about Home Automation so that the market will continue to grow and prosper?

Industry associations and increasing advertising in consumer venues is happening as the industry grows. An interested public is driving increased media attention to the subject, and dealers selling security systems are offering home automation systems as options. Magazines connecting with early adopter consumers are also writing about home automation.

Jay McLellan
President/CEO
Home Automation, Inc. (HAI)

Mr. McLellan has been active in the security and automation industry since 1983. An electrical engineer by training, his prior experience includes electronic and software design for building controls, military and merchant marine control systems and industrial pipeline control systems. He has also been Product Line Manager for energy metering devices and personal computers.

In 1985 Mr. McLellan, along with his partners, Mr. Brian Yokum and Mr. Tom Pickral formed Home Automation, Inc.(HAI). Since that time HAI. has grown into the industry leader with its reputation for innovation, reliability, and value. Under Mr. McLellan's direction HAI has developed a comprehensive line of powerful and seamlessly integrated security and automation products, including its best selling Omni family of controllers, a full line of communicating thermostats, and its multi-award winning Web-Link software.

Mr. McLellan was the 1999 recipient of the Home Automation & Networking Association's Leadership award, the industry's highest honor for outstanding contribution and leadership in his field and is a frequent speaker at industry and consumer events on the subject of home automation.