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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                    Coronavirus Update

                                    May 16, 2022 - China’s Factory Output Slows
                                    • Domestic audio and video equipment manufacturers may benefit from supply chain issues that are creating more uncertainty with each new coronavirus pandemic spike. China’s manufacturing output decreased to a 26-month low in April as its zero-tolerance approach to the pandemic slowed factory output. The Caixin China General Manufacturing purchasing managers’ index (PMI) dropped from 48.4 in March 2022 to 46 in April. A reading below 50 suggests output is contracting rather than expanding. In April, new orders and production fell to their lowest levels since the survey began in 2004, and exports declined at the steepest rate in nearly two years. Delivery times grew at the second-fastest rate in the index’s history amid travel restrictions and raw materials shortages.
                                    • Amid rising inflation, consumers are pulling back on some discretionary spending which could reduce demand for audio and video equipment. The US consumer price index increased 8.3% year over year in April, down from the 8.5% posted in March but still near a 40-year high. According to a CNBC | Momentive poll, nearly half of US adults surveyed said they think about rising prices all the time. More than half of US households earning $50,000 or less report constantly checking costs.
                                    • Global consumer media consumption slowed in 2021 after the pandemic fueled phenomenal growth in 2020, according to media market research firm PQ media. Consumption across all digital and traditional media grew 1.6% in 2021 to 54.4 hours per week, marking a slowdown from the 3.1% rise in 2020, which was the biggest annual jump in 15 years. Driven in part by the pandemic, digital media’s share of total media consumption was 33.4% in 2021. Key areas of digital media growth were mobile video, OTT streaming services, and audio streaming and podcasts. Media consumption is expected to post more robust growth in 2022 amid a stronger slate of new original programming and several high-profile sporting events, including the FIFA World Cup.
                                    • On a seasonally adjusted basis, US manufacturers’ shipments of audio and video equipment decreased 1% in March 2022 compared to the prior month and increased 45.7% compared to March 2021 on an unadjusted basis.
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