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
Recent Developments
Jul 23, 2024 - Shipments Increase Year Over Year
- Shipments of audio and video equipment increased 21.8% in May 2024 year over year not seasonally adjusted, while shipments were down 3.3% compared to the previous month seasonally adjusted, according to data from the Census Bureau. Audio and video equipment inventory levels fell 31.3% in May 2024 compared to a year ago and 0.9% from the previous month. Consumer spending levels grew during the first five months of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- As part of an expansion of its global retail presence, GoPro announced a new distribution deal with SoftBank Group’s SB C&S Corporation in Japan to sell its products, according to SGB Media Online. Through the partnership, SB C&S will distribute a full range of GoPro cameras and accessories to its sales network in Japan, including its directly managed SoftBank stores as well as large consumer electronics retailers Yodobashi and Yamada. SB C&S will provide retailers with product displays, training, and support for GoPro products. GoPro announced during its Q1 2024 earnings call that it is focused on expanding its global presence, with 1,000 new retail doors added in the first quarter. The company plans to add 3,000 to 6,000 new retail doors by the end of 2025.
- The Pro AV Sales Index remained moderate in June 2024 month over month, according to the Audiovisual and Integrated Experience Association (AVIXA). The Pro AV Sales Index registered 56.6 in June 2024, down 3.3 points from the May index. 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 seasonal factors, higher demand, and easing supply chain challenges as conditions affecting the industry. In comparison, the monthly average index in 2023 was 58.8, representing a stable year but not as strong as 2022, according to AVIXA.
- US manufacturing activity contracted in June 2024 for the third consecutive month after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 48.5% in June, down 0.2 percentage points from the 48.7% recorded in May. A reading above 50% indicates manufacturing expansion. Prior to the uptick in March, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. June’s New Orders Index was in the contraction zone at 49.3%. The June Production Index was 48.5%, a decrease from May’s 50.2%. Eight manufacturing industries tracked by the ISM reported growth in June: Printing & Related Support Activities; Petroleum & Coal Products; Primary Metals; Furniture & Related Products; Paper Products; Chemical Products; Miscellaneous Manufacturing; and Nonmetallic Mineral Products. The industries reporting contraction in June were Textile Mills; Machinery; Fabricated Metal Products; Wood Products; Transportation Equipment; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Computer & Electronic Products.
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