Northland Tech Solutions - Market Research
Executive Summary
The Managed Service Provider (MSP) and IT services market is experiencing strong growth driven by SMB digital transformation, cybersecurity concerns, and cloud migration. The low voltage cabling segment is booming due to datacenter construction and 5G infrastructure buildout. Kansas City’s central location and growing tech scene make it a viable market with moderate competition.
Market Size & Growth
U.S. MSP/IT Services Market
Metric Value Source Global MSP Market $311B (2024) MarketsandMarkets Projected (2029) $512B MarketsandMarkets CAGR 10.5% MarketsandMarkets North America Share ~35% ($109B) Estimated SMB IT Spend (US) $150B+ annually Deloitte
U.S. Low Voltage/Cabling Market
Metric Value Source Structured Cabling Market $13.5B (2024) Grand View Research Projected (2030) $21.2B Grand View Research CAGR 7.9% Grand View Research Datacenter Construction (US) $28B (2024) JLL Research Fiber Optic Cables (US) $3.8B (2024) Mordor Intelligence
Market Segments
Segment Size Growth Opportunity Managed IT Services $100B+ 10-12% Core offering Cybersecurity Services $45B+ 12-15% High demand, premium pricing Cloud Services $80B+ 15-20% Migration assistance Low Voltage Cabling $15B+ 7-9% Cash flow, entry point VoIP/Unified Comms $12B+ 8-10% Bundling opportunity Break-Fix/Hourly Declining -3% Transition to managed
Growth Drivers
Cybersecurity Threats: Ransomware driving SMB security spendCloud Migration: Hybrid cloud complexity needs expertiseRemote Work: Distributed workforce IT challengesDatacenter Boom: AI/Cloud driving massive construction5G Rollout: Infrastructure cabling demandCompliance: HIPAA, PCI-DSS, CMMC requirementsLabor Shortage: SMBs can’t hire internal IT
Target Demographics
Primary: Small-Medium Business Owners
Attribute Profile Company Size 5-100 employees Revenue 500 K − Industry Professional services, healthcare, manufacturing, retail IT Maturity Low to medium (no dedicated IT staff) Decision Maker Owner, CEO, CFO, Office Manager Pain Points Security fears, downtime costs, technology overwhelm
Customer Segments
Segment Size IT Budget Service Fit Priority Micro-Business 1-10 employees $200-500/mo Basic managed, break-fix 🟡 Medium Small Business 11-50 employees $500-2,500/mo Full MSP, compliance 🔴 Primary Mid-Market 51-200 employees $2,500-10,000/mo MSP + projects 🔴 Primary Enterprise 200+ $10,000+/mo Projects only (they have IT) 🟢 Opportunistic Contractors (Cabling) N/A Project-based Low voltage subs 🔴 Primary
Industry Verticals (KC Focus)
Industry Opportunity Notes Healthcare/Dental Very High HIPAA compliance, steady growth Legal/Accounting High Compliance, high value Manufacturing High KC has strong mfg base Professional Services High Growing, tech-dependent Construction Medium-High Low voltage referrals Retail Medium PCI compliance Non-Profit Medium Budget-conscious but stable Restaurants Low High churn, low margin
Geographic Analysis
Kansas City Market Overview
Metro Population: 2.2M
Business Count: ~65,000 establishments
SMB (under 100 employees): ~62,000 (95%)
Median Business Size: 12 employees
Tech Employment: 45,000+ (growing)
KC Market Strengths
Factor Assessment Central US Location Excellent for national clients Low Cost of Living Competitive pricing advantage Growing Tech Scene Startup hub (Silicon Prairie) Datacenter Presence Google, Facebook, others building Healthcare Hub Large hospital systems, clinics Manufacturing Base Strong industrial presence
Target Sub-Markets
Area Business Density Industry Focus Priority Overland Park Very High Professional services 🔴 Primary Lenexa/Olathe High Manufacturing, logistics 🔴 Primary Downtown KCMO High Professional services 🟡 Medium Northland Medium-High Healthcare, retail 🔴 Primary Lee’s Summit Medium SMB mix 🟡 Medium Independence Medium Manufacturing 🟢 Secondary KCK/Wyandotte Low-Medium Industrial 🟢 Secondary
Low Voltage Opportunities
Opportunity Location Scale Status Datacenter Construction Lenexa, Platte County Large Active Hospital Expansions KC Metro Medium-Large Ongoing Office Buildouts Johnson County Small-Medium Steady Industrial/Warehouse KCK, Eastern KC Medium Growing 5G Infrastructure Metro-wide Large Emerging
Competitor Analysis
KC MSP Landscape
Competitor Size Strengths Weaknesses Threat ECMSI Large Established, enterprise Expensive, slow Low Invision IT Medium Good reputation Premium pricing Medium Executech Medium Broad coverage Stretched thin Medium Applied Tech Medium Healthcare focus Niche only Low CMIT Solutions Franchise Brand, process Cookie-cutter Medium Solo IT Consultants Many Cheap, flexible Unreliable, no depth Low
Competitive Positioning
Market Gap:
Large MSPs ignore sub-50 employee businesses
Small MSPs lack depth/reliability
Nobody emphasizes right-sized, bare metal solutions
Low voltage often outsourced (opportunity to bundle)
NTS Differentiation
Competitor Approach NTS Approach Cloud-first, expensive Right-sized, cost-effective Monthly per-seat only Flexible models Cookie-cutter solutions Custom architecture Ticket clearers True partnership IT only IT + Low Voltage bundled
Low Voltage Competitors
Company Focus Size Notes Black & Veatch Large commercial Enterprise Not competing at SMB Altus Comm Structured cabling Medium Established Various electrical subs Mix Small Quality varies
Pricing Benchmarks
MSP Pricing Models
Model Range Notes Per User/Seat $100-200/user/mo Most common Per Device $15-50/device/mo Simple, scalable Tiered Packages $500-5,000/mo Bronze/Silver/Gold All-Inclusive $150-300/user/mo Premium, predictable Hourly (Break-Fix) $125-200/hr Declining model
KC Market Rates
Service Low Mid High Per Seat (full MSP) $100 $150 $250 Hourly Break-Fix $100 $150 $200 Project Work $125/hr $165/hr $225/hr Security Add-On $25/user $50/user $100/user
Low Voltage Pricing
Service Rate Cat6 Drop (installed) $150-250/drop Fiber Run $8-15/foot + termination Patch Panel/Rack $500-2,000 (labor) Testing/Certification $25-50/drop Datacenter Cabling Project-bid
Recommended NTS Pricing
Entry Tier (1-10 users): 500 − 1 , 000/ m o ∗ ∗ St an d a r d T i er ( 11 − 25 u sers ) : ∗ ∗ Professional Tier (26-50 users): $3,500-6,500/mo
Enterprise Tier (51-100 users): Custom
Marketing Channels
B2B Channel Effectiveness
Channel Cost Effort ROI Priority Referrals Free Low Very High 🔴 Critical LinkedIn Low Medium High 🔴 Critical Google Ads (Local) Medium Medium High 🔴 Critical Local Networking Low High High 🟡 Important Website/SEO Low High Medium 🟡 Important Chamber of Commerce Low Medium Medium 🟢 Secondary Trade Shows High High Medium 🟢 Phase 2 Cold Calling Low Very High Low 🟢 Limited
Content Strategy
Content Type Frequency Purpose Case Studies Monthly Proof, SEO Security Alerts As needed Value, awareness How-To Guides Bi-weekly SEO, authority Industry Insights Weekly LinkedIn content Client Testimonials Ongoing Trust signals
Partnership Opportunities
Partner Type Value Approach Accountants/CPAs Client referrals Reciprocal Business Attorneys Client referrals Reciprocal Commercial Realtors Move-in IT services Commission General Contractors Low voltage subs Bid work Software Vendors Implementation services Certification Insurance Agents Cyber insurance referrals Reciprocal
Industry Trends
Growing Opportunities
Trend Impact Timeline AI Integration New service line Now-2027 Zero Trust Security Premium service Now CMMC Compliance Defense contractors 2025-2026 Cloud Repatriation Bare metal opportunity Growing Edge Computing On-prem + cloud hybrid 2025-2027 Remote Work Support Sustained demand Ongoing
Threats & Challenges
Threat Likelihood Mitigation Consolidation (PE buying MSPs) High Niche focus, relationships Vendor direct competition Medium Service > product Margin pressure High Efficiency, automation Talent shortage High Culture, training pipeline Certification requirements Medium Invest in certs early
Certifications & Requirements
Required/Recommended
Certification Required For Priority Business License Operation 🔴 Required Liability Insurance All work 🔴 Required E&O Insurance MSP work 🔴 Required BICSI Installer Low voltage certs 🟡 High Value Microsoft Partner M365 work 🟡 High Value CompTIA Security+ Credibility 🟡 Important Cisco CCNA Networking cred 🟢 Nice to Have Low Voltage License State requirement? 🔴 Check MO/KS
Missouri/Kansas Requirements
Missouri: No state license for low voltage, but local permits may apply
Kansas: No state license, local jurisdiction varies
Both: General contractor license may be needed for larger jobs
Financial Projections
Revenue Ramp (Conservative)
Quarter MSP MRR Low Voltage Total Q1 $1,000 $5,000 $6,000 Q2 $3,000 $10,000 $13,000 Q3 $6,000 $15,000 $21,000 Q4 $10,000 $15,000 $25,000 Year 1 $20,000 $45,000 $65,000
Year 2 Target
Revenue Stream Monthly Annual MSP Contracts $15,000 $180,000 Low Voltage $12,000 $144,000 Projects/Hourly $5,000 $60,000 Total $32,000 $384,000
Recommendations
Phase 1: Foundation (Months 1-6)
Lead with low voltage — faster cash flow, lower sales cycleBuild MSP client base from cabling relationshipsEstablish online presence — website, LinkedIn, Google BusinessGet insurance and certifications in orderJoin one networking group — BNI or local chamber
Phase 2: Growth (Months 7-12)
Systematize MSP offering — packages, SLAs, portalHire first technician when $8K MRR sustainedBuild referral partnerships — CPAs, attorneysExpand low voltage — pursue datacenter work
Phase 3: Scale (Year 2+)
Add cybersecurity specialty — premium serviceConsider partner/acquisition for growthVehicle and tools investment Formal office/warehouse space
Sources
MarketsandMarkets: Managed Services Market Report
Grand View Research: Structured Cabling Market Analysis
Deloitte: SMB Technology Spending Survey
JLL: North American Datacenter Report
CompTIA: IT Industry Outlook
Kansas City Business Journal: Tech Sector Analysis
Bureau of Labor Statistics: IT Employment Data