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 460 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 $7 million annually.

    • The US audio and video equipment manufacturing industry consists of about 440 firms that employ about 8,900 workers and generate about $3 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

                                    Nov 21, 2022 - NRF: Holiday Spending to Hold Up Despite Inflation
                                    • Despite high inflation and rising interest rates, the National Retail Federation (NRF) expects consumer spending to remain resilient this holiday season. While the NRF acknowledges consumers are feeling the pinch of higher interest rates and inflation, it believes economic fundamentals – including job growth, rising wages, and savings accumulated during the pandemic - will sustain consumer spending. The NRF also points to US gross domestic product growth of 2.6% in the third quarter as evidence that the US economy hasn’t slipped into recession. The NRF forecasts holiday spending will rise between 6% and 8% over 2021 levels to reach between $942.6 billion and $960.4 billion. The outlook for 2022 is down from the 13.5% rise seen in 2021 but is better than the average 4.9% growth seen over the last decade.
                                    • Seasonally adjusted US sales at electronics and appliance stores fell 0.3% in October 2022 compared to September, according to the US Census Bureau. Unadjusted electronics and appliance store sales were down 12.3% in October year over year.
                                    • Amid inflation, 38% of consumers said they plan to spend less on gifts this holiday season than last year, according to a survey by Morning Consult released in November. About 45% of shoppers said they planned to spend about the same as they spent in 2021. The most popular gift category is gift cards, with 56% of survey respondents saying they planned to give them. Gift cards are not as affected by inflation as goods and allow for greater control over spending. Other popular gifts include apparel (39% of gift buyers), toys (36%), money (33%), and holiday food and alcohol (29%).
                                    • Many retailers are experiencing the exact opposite problem they experienced last holiday season as they contend with an oversupply of inventory. In late 2021, supply chains were snarled, and retailers overordered to have enough items to sell during peak season, much of those orders arrived late, just as pandemic conditions improved and consumers pivoted to spending more on services and less on goods. To clear the glut of merchandise, some retailers are starting their seasonal sales events early, according to Morning Brew. Electronics and computers are among the products that are likely to be significantly discounted, according to Adobe Analytics.
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