ICIA Releases Positive Report On Audiovisual Industry; Pro-AV Companies Entering New Markets, Anticipate Increased Profits

24-Feb-04

The International Communications Industries Association, Inc. (ICIA) has announced the release of its 2004 Market Forecast Survey. Several findings in the report reinforce other signs weíre seeing, like the stock market, for example; of an improving business climate for the professional audio/visual (AV) industry. Anecdotal evidence encouraging an optimistic outlook for the coming year seems to be more fully warranted by the detailed market intelligence ICIAís survey has gathered.  Above all, the report observes that ìfuture trends are again quite positive,î with most of the companies that responded believing their revenues and profits will increase over the next three years. However, the survey covers a broad range of issues, beginning with earnings and profitability, and extending to membersí perceptions of important new products and trends. Here are the key findings the survey reveals:  Among responding companies, median revenue climbed from $2.6 million in 2002 to $3 million in 2003, jumping 9.1 percent, and is expected to grow another 14.1 percent to $3.5 million in 2004.  Respondents also reported significantly higher profits in 2003 over 2002, and expect this trend to continue in 2004. It should be noted that respondents were predominantly AV dealers and integrators, as well as a proportionately smaller number of independent design consultants. These companies view the business/corporate market as the AV industryís most significant category, accounting for an average 23 percent of revenues in 2003; however, the higher education market is perceived as very important, accounting for 14.9 percent of revenues. Government and military, meetings and events, worship, and K-12 markets are also high on the radar. New products and technologies singled out for having a positive impact on membersí businesses include videoconferencing, digital signal processing, control systems, and devices, wireless devices, the growing convergence of AV systems and solutions, LCD projectors, and LCD and plasma displays. Among trends the survey examined, respondents see as most positive the increased use of conferencing and collaboration technologies, the integration of AV systems into information technology (IT) environments, the growth of wireless technologies and larger displays, the spread of remote management and monitoring systems, and the growing residential market. On the flip side, the trends most respondents see as having a negative impact include ëmega-stores,í Internet- and manufacturer-direct sales, lower priced equipment, especially projectors, and margin erosion in professional AV products. By forecast or in person, thereís no substitute for looking and planning ahead. ICIAís market surveys, which are continuing, are part of the association's effort to help the industry stay not just on top of the curve, but ahead of it. For more information on InfoComm, please visit www.infocomm.org. For more information on ICIA, please visit http://www.infocomm.org/AboutICIA/.

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