Pro AV sales remain strong in 2019, according to AVIXA’s Pro-AV Business Index. Several surveyed AV professionals are relishing in the busy summer season. However, others report that tariffs are creating headwinds.
In May, the AV Sales Index (AVI-S) edged up to 63.8. Measuring comfortably above the neutral growth marker of 50, this number demonstrates the continued good health of the pro AV industry. The increased respect for integrated AV in the marketplace is driving higher revenues, according to surveyed AV professionals.
“Though dramatic headlines make it difficult, wisdom suggests taking a wide view of market fluctuations,” said Peter Hansen, economic analyst, AVIXA. “Key indicators like unemployment and the stock market can considerably deviate from expectations in a given month. Usually these fluctuations are noise, not signal. Patience is especially important in pro AV, as revenue sources like concerts, construction, and renovation involve months of advance planning and cannot respond to short-term jumps.”
International trade suffered in May, as President Trump raised tariffs on Chinese imports to 25 percent before threatening to impose a 5 percent tariff on all goods imported from Mexico. For now, it appears the tariffs on Mexico will not take effect thanks to bipartisan congressional opposition and some anti-immigration efforts by the Mexican government
U.S. employment numbers disappointed in May, as the economy registered an increase of 75,000 jobs against an expectation of 180,000. In addition, April’s strong growth number was revised down by 39,000 jobs to 224,000. The monthly jobs numbers have fluctuated in 2019, such as when we saw 312,000 jobs added in January and then just 56,000 in February. Observers shouldn’t focus too much on a single weak month. Still, the stakes for June’s numbers are now slightly higher. Pro AV employment also had a month of moderately disappointing growth. At 56.6, the AV Employment Index (AVI-E) reflects continued job growth, but at a slower pace than April’s mark of 60.3.
The Pro-AV Business Index report is derived from a monthly survey of the AVIXA AV Intelligence Panel (AVIP), a research community of industry members that tracks business trends in commercial AV. The report actually 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.
Visit avixa.org/AVindex to access the free monthly Pro-AV Business Index reports and learn more about the methodology. For more information about joining the AV Intelligence Panel, visit avixa.org/AVIP.