ICIA Releases Positive Report on Audiovisual Industry

The International Communications Industries Association, Inc. (ICIA)has announced the release of its 2004 Market Forecast Survey.

Several findings in the report reinforce other signs we’reseeing — the stock market, for example — of an improvingbusiness climate for the professional audiovisual (A/V) industry.Anecdotal evidence encouraging an optimistic outlook for the comingyear seems to be more fully warranted by the detailed marketintelligence ICIA’s survey has gathered.

Above all, the report observes that “future trends are againquite positive,” with most of the companies that respondedbelieving their revenues and profits will increase over the next threeyears. However, the survey covers a broad range of issues, beginningwith earnings and profitability, and extending to members’perceptions of important new products and trends. Here are the keyfindings the survey reveals:

Among responding companies, median revenue climbed from $2.6 millionin 2002 to $3 million in 2003, jumping 9.1 percent, and is expected togrow another 14.1 percent to $3.5 million in 2004.

Respondents also reported significantly higher profits in 2003 over2002, and expect this trend to continue in 2004. It should be notedthat respondents were predominantly A/V dealers and integrators, aswell as a proportionately smaller number of independent designconsultants.

These companies view the business/corporate market as the A/Vindustry’s most significant category, accounting for an average23 percent of revenues in 2003; however, the higher education market isperceived as very important, accounting for 14.9 percent of revenues.Government and military, meetings and events, worship, and K-12 marketsare also high on the radar.

New products and technologies singled out for having a positiveimpact on members’ businesses include videoconferencing, digitalsignal processing, control systems and devices, wireless devices, thegrowing convergence of A/V systems and solutions, LCD projectors, andLCD and plasma displays.

Among trends the survey examined, respondents see as most positivethe increased use of conferencing and collaboration technologies, theintegration of A/V systems into information technology (IT)environments, the growth of wireless technologies and larger displays,the spread of remote management and monitoring systems, and the growingresidential market.

On the flip side, the trends most respondents see as having anegative impact include “mega-stores,” Internet- andmanufacturer-direct sales, lower-priced equipment (especiallyprojectors), and margin erosion in professional A/V products.

By forecast or in person, there’s no substitute for lookingand planning ahead. ICIA’s market surveys, which are continuing,are part of the association's effort to help the industry stay not juston top of the curve, but ahead of it.

Copies of the 2004 Market Forecast Survey may be purchased in theICIA Online Store at www.infocomm.org or by calling Sales at (800)659-7469.

About ICIA
The International Communications Industries Association, Inc.(ICIA) is the premier trade association for the professionalaudiovisual communications industry. ICIA is the founder of InfoComm,the conference and trade exposition for audiovisual communicationsprofessionals who come to learn about the latest technologies andavailable services as well as new and alternative applications. Inearly 2003, ICIA and two other associations -- CEDIA and NSCA --launched Integrated Systems Events to serve their collectivememberships in Europe and Asia. ICIA serves its worldwide membership asthe pre-eminent provider of A/V education, training, andcertification.

ICIA and its foundation, the International Communications IndustriesFoundation, Inc. (ICIF) established a market intelligence program inearly 2003. The purpose of the program is to facilitate the process offinding relevant market information and increase the number ofavailable market reports covering the A/V industry. ICIA’s MarketIntelligence program includes primary research, and also acts as areferral service to research conducted by market analyst partners. Moreinformation about this program is available under Market Intelligenceat www.infocomm.org.