Disappointing Growth in the Pro AV Industry as Per AVIXA Report in February
The Pro AV Business Index report, derived from the monthly survey of the AVIXA Insights Community, offers a glimpse into the current state of the audio-visual (AV) industry. While the global economy is experiencing a mix of growth and challenges, the latest report reveals some slowdown in the AV sector.
In February, the Pro AV Business Sales Index (AVI-S) delivered the slowest growth rate since January 2021, registering a 53.4% increase. This slow growth could be linked to the economic weakness in some economies, particularly in Europe. Germany, for instance, is currently in recession, as announced by the Bundesbank in February, and Britain recorded back-to-back quarters of GDP contraction to close out 2023.
Interestingly, the labor market continues to be a bright spot in the wider economy, despite these economic pressures in Britain and Germany. The U.S. Bureau of Labor Statistics reported an increase of 275,000 jobs in February, exceeding pre-pandemic norms and many other months in the past year. Moreover, wages in the U.S. increased 4.3% year-on-year in February, faster than inflation.
The slow growth in February is due to an exceptionally high level of respondents reporting no change, at 59.7% – the second-highest ever no-change level in the seven-year history of the index. In comparison, the percentage of respondents reporting no change was 48.5% in January 2021.
The Pro AV Employment Index (AVI-E) also saw a dip in February, with a mark of 53.8 – the lowest figure since early 2021. This indicates a slight slowdown in the hiring pace within the AV industry.
It will be interesting to watch how these recession pressures in Britain and Germany affect the rest of the world and the labor market. Regarding Japan, initial reports suggested back-to-back GDP contractions in 2023, but subsequent revisions contradicted the early reports, indicating a different economic picture for the country.
For those interested in staying updated on business trends in the commercial AV industry, joining the AVIXA Insights Community could be beneficial. This research community of industry members tracks business trends and offers insights into the industry's current state and future direction. To join the AVIXA Insights Community, visit www.avixa.org/AVIP.
While the news isn't excessively negative, with no global recession currently in sight and Britain already appearing to grow comfortably again, it's crucial for businesses to stay informed and adapt to the changing economic landscape. The AV industry, like many others, may face challenges in the coming months, but with the right strategies and insights, it can continue to thrive.
