Audio & Video Equipment Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 467 audio and video equipment manufacturers in the US produce electronic audio and video equipment for home entertainment, motor vehicles, and public address and musical instrument amplification. Products include stereo equipment, speaker systems, televisions, household-type video cameras, jukeboxes, microphones, and amplifiers for musical instruments and public address systems. Large firms typically enjoy scale benefits, while small firms compete by offering specialty products.

Inventory Obsolescence

Rapidly evolving technology and fast product development cycles, which characterize the audio and video equipment manufacturing industry, can lead to inventory obsolescence.

Dependence on Foreign Contract Manufacturing

Although US firms play a significant role in the domestic audio and video manufacturing market, foreign production in countries with lower labor costs is the norm.

Industry size & Structure

The average US audio and video equipment manufacturer operates out of a single location, employs about 20 workers, and generates $9.6 million annually.

    • The US audio and video equipment manufacturing industry consists of about 467 firms that employ about 9,500 workers and generate about $4.5 billion annually.
    • The industry is concentrated; the top 50 companies account for 78% of industry revenue.
    • Large firms are generally the US subsidiaries of foreign companies, which include Samsung, Sony, and LG Electronics. Multi-national conglomerates dominate the industry. Large US companies include Bose and GoPro.
    • While television manufacturing is included in the industry, foreign-owned firms produce the vast majority of TVs sold in the US. TVs assembled in the US typically use parts from abroad.
                                    Industry Forecast
                                    Audio & Video Equipment Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    May 21, 2024 - Higher Shipments, Declining Inventories
                                    • Audio and video equipment manufacturers saw a 37.5% increase in shipments in March 2024 year over year, and shipments were up slightly from the previous month, according to data from the Census Bureau. Audio and video equipment inventory levels have been on the decline on a year-over-year basis. Inventories fell 31.3% in March 2024 compared to a year ago though were up 5.7% from February. In addition, consumer spending levels showed an upward trend in the first quarter of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
                                    • The Pro AV Sales Index remained strong in April 2024 month over month, according to the Audiovisual and Integrated Experience Association (AVIXA). The Pro AV Sales Index registered 61.8 in April 2024, essentially the same as the previous month and about the same as in 2019. An index of 50 indicates firms saw no growth or decline in business activity; more than 50 indicates an expansion, while less than 50 indicates a decrease. Respondents named hiring difficulties, constrained budgets, and economic uncertainty as challenges facing their businesses. In comparison, the monthly average index in 2023 was 58.8, representing a “solid year” but not as good as 2022, according to AVIXA.
                                    • US manufacturing activity contracted in April 2024 after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.2% in April, down 1.1 percentage points from the 50.3% recorded in March. A reading above 50% indicates manufacturing expansion. Prior to March’s expansion, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. April’s New Orders Index was in the contraction zone at 49.1%. The April Production Index was 51.3%, a decrease from March’s 54.6%. Nine manufacturing industries tracked by the ISM reported growth in April: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. The industries reporting contraction in April were Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.
                                    • Audio and video equipment manufacturers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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