The tariff uncertainty continues to remain a top concern within the Pro AV industry. Over the past three months, the AV Sales Index (AVI-S) has consistently shown expansion. March saw the highest growth, with a slight moderation in April. Despite the small dip from March (60.9) to April (59.7), the overall trend remains positive, indicating sustained growth in the sector.
The AV Employment Index (AVI-E) bounced back in April to 55.5 from 53.5. The AVI-S and AVI-E continue to show modest growth of the industry. The U.S. economy added 177,000 jobs in April, exceeding the expected 138,000, but the government revised previous months downward. March’s figure was adjusted to 185,000, while February’s was revised down even more sharply to just 85,000 new positions.
This suggests the labor market hasn’t been quite as robust as initially reported. Unemployment remains at 4.2%. The impact of federal layoffs and tariffs are expected to have broader effects in the coming months.
“We are not doing layoffs. Rather we are choosing to delay replacement hires until the economy picture is clearer,” shared an AV integrator in North America.
“Clients are withholding commitments due to economic transition and uncertainty. Tariff concerns with price and supply is high,” commented an AV Integrator in APAC.
The Pro AV Business Index report is derived from a monthly survey of the AVIXA Insights Community, a research community of industry members that tracks business trends in commercial AV. The report comprises two diffusion indexes: the AV Sales Index (AVI-S) and the AV Employment Index (AVI-E). In each case, an index above 50 indicates an increase in sales or employment activity. For more information about joining the AVIXA Insights Community, visit www.avixa.org/AVIP.
