The story of a lower growth outlook continues to be supported by lackluster results from the business indices. Though still indicating growth, the AV Sales Index (AVI-S) remains locked in the high 50s.
Looking across the entire series of the index, most periods prior to 2023 showed scores over 60, other than at the peak of the pandemic in 2020. Thus, one could reasonably expect 2025 growth to come in below the averages of 5-6% for Pro AV at large, which is what the newly release forecasts from AVIXA’s Industry Outlook and Trends Analysis (IOTA) predict.
Challenges for AV providers still center around the macro context, including inflation, the U.S. political situation, and tariff uncertainties, all of which have softened the incoming pipeline of work. The silver lining is that survey comments suggest the impacts of each have seemed to lessen over the past month or two, even if project delays have surfaced. Despite the challenges, growth remains the norm as customers forge ahead with projects, often accepting the increased costs.
With sales growth moving at a slower pace, it is not surprising for the AV Employment Index (AVI-E) to also be tracking lower from a historical perspective. While scores below 60 are more common for the AVI-E, the new reading of 55.6 is still in the lower end of the range, even if it increased slightly from May.
Given the continued strength of the job market, hiring in any sector would remain fairly challenging, with Pro AV being no exception. However, comments suggest a mix of hiring and downsizing in alignment to budgets and project demand. One might reasonably expect the AVI-E to remain at lower levels as AV companies take a conservative approach to their staffing levels.
[AVIXA Remains Positive on Industry Forecast]
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.
