The Brevard Technical Journal

Island Systems Design Plugs Into Success
Audio, video integration & control firm taps new market for intelligent residential control systems

by Kathy Hagood
Brevard Technical Journal

Island Systems & Design has assembled a glamorous client list over the years as the walls of its offices and plant in Rockledge attest.

Framed mementos and celebrity photographs drop names like Donald Trump, Frank Sinatra and Hard Rock Café.

Carnival Cruise Lines, Disney and Ameristar Casinos are on the company's client list as well as a number of local houses of worship, including the First Baptist Church on Merritt Island.

But the audio, video and control system integration company with the Tiki logo hasn't drawn its numerous clients with hype or glitz, just quality system design, installation and support. Customers call it "the island way."

Referrals built the business, according to Carlos Gonzalez Jr., president and chief operating officer, of the 19-year-old company. "It's all been word of mouth. We've never advertised until recently," he said.

He and his family moved to Brevard County and established the business on Merritt Island in 1984. Gonzalez was tired of the stress of the Washington D.C. market. The relocation inspired Gonzalez to create an island mystique for the company, which appeals to many customers.

But it also situated the company near significant theme park and cruise destinations. A smart move, according to the National Systems Contractors Association (NSCA), which represents the commercial electronics systems industry.

"Most of our members that are involved in the entertainment industry are located near or in large cities or by attraction type locations, such as Island Systems & Design," said NSCA's Jodi Montgomery.

Gonzalez began his career as a musician, which eventually led to his renting out his equipment. The practice evolved into his providing equipment support for top-name entertainers then later to supplying and integrating audio, video and control systems.

A straight shooter with no qualms about being politically incorrect, Gonzalez said his customers value the company's reputation for being direct and offering sound advice.

"Customers sometimes think they know what they want, but we let them know what their alternatives are so they can make the best decision," Gonzales said. "Oftentimes the best investment is not what's a few hundred dollars cheaper, but what's going to give the customer more value over the long run."

The company's product lines include Crestron, Phillips, Zenith, Lowell, Extron Electronics, Shure, Loewe, Monitor Audio, Klipsch, Mitsubishi, DirectTV and Bose.

Many of the company's customers opt for value, Gonzalez said. For example, sports bars and restaurants that want to be on the leading edge of the technology curve are installing integrated video and audio systems with high definition television and centralized control systems, he said.

"I've tried to tell some local establishments in Brevard about the capabilities, but many don't want to make the investment," Gonzalez said. "They plan to stick with their old televisions sets and remote controls."

The company is installing such systems for technology leaders in the field: ESPN Zone, Fox Sports Grill, Smokey Bones and R.J. Gators, including in the new R.J. Gators on Merritt Island. Establishments that hang on to regular televisions and remote controls are apt to lose business to the forerunners, Gonzalez believes.

"Some businesses are going to wait until it's too late to get their customers back," he said. "I feel sorry for them."

The next step for the top venues will be centralized touch-screen control of all systems, he said.

Demand for automated systems is expected to increase significantly by 2005, according to market research by NSCA.

The commercial electronics systems industry generated about $26.2 billion in sales worldwide during 2002, the association reported. The industry is growing at about 5 percent per year.

Currently about 80 percent of Island Systems & Design's business is commercial work, 10 percent government contracts and 10 residential. Gonzalez believes his company will increase its residential business to 40 percent of its total business in coming years.

Island Systems and Design generated $7 million in revenues last year. Gonzalez thinks he'll be able to boost his business to the $40 million mark by pushing into the residential market.

"It's a new market, so there's opportunity for significant growth," he said.

Gonzalez believes there will be increasing demand for sophisticated audio and video systems as well as intelligent home control systems. Lighting, security, air-conditioning and more, as well as audio and video, can be controlled from stationary and mobile touch screens.

His company is installing a touch-controlled system in his home on Merritt Island. Eventually the system will be voice activated.

"I'll be able to monitor my home from my office and control it from my car," Gonzalez said.

Island Systems & Design employs 28 at its 14,500-square-foot facility. The company is a family business: Gonzalez' wife, Pam, is vice president. Their sons Jimi and Jeremy, respectively, provide marketing and graphic design support for the company. Jimi Gonzalez' wife, Siclaly Marie Santiago-Gonzalez is the residential sales administrator.

Island Systems & Design has been on the Hispanic Business 500 list of the largest Hispanic-owned companies in the country for the past five years. Although Gonzales takes pride in his Cuban heritage and his position as the leader of a Hispanic business, he is adamant about not using his minority status for what he calls "unfair advantage," he said.

"My parents immigrated to this country because they believed it was a land of opportunity if you worked hard. They didn't expect anyone to give them anything," Gonzalez said.

Although about 10 percent of the company's business is government contracting, none of that has been gained through government set-aside contracts for minority companies, he said.

"People say I'm crazy not to take advantage of being Hispanic, but I think doing that actually hurts Hispanics," Gonzalez said. "I know that will offend some people, but it's what I believe."

"I think it's important to speak your mind. It's served me well. My customers value my advice because they know I won't just tell them what they want to hear."

For more information about Island Systems and Design, visit www.islandsystemsand design.com.