Business for broadcast-equipment vendors is still strong despite the economic uncertainty that has been plaguing global markets, according to research from the International Association of Broadcast Manufacturers, which represents more than 270 vendors worldwide.
Global sales in the broadcast-technology market increased by 11.4% year-on-year, according to the latest industry index from the IABM released on the eve of the National Association of Broadcasters’ 2008 NAB Show in Las Vegas next week.
That compared favorably with index data the IABM released last December, which showed annual sales growth of around 14%.
The index surveys more than 70 companies representing over $8.6 billion in sales, representing more than two-thirds of the global market for broadcast equipment, and it is balanced at 50-50 North America to European companies based on sales turnover.
The IAMB said aggregate profitability for vendors is improving at a faster annual rate than global sales -- some 19% year-on-year -- and as a result, the global index for profit-to-sales ratio rose to 12.7%. Almost 80% of the companies in the index are profitable, with 15% of the companies moving into the black compared to a year ago, and 10% of the companies reporting a loss were profitable a year ago.
“These figures confirm the healthy state of our sector over the past 12 months,” said IABM CEO Roger Stanwell in a statement. “As yet, there is no firm evidence of an industrywide downturn in broadcast-infrastructure investment, although there are anecdotal reports of a turndown in a few areas. The upcoming NAB convention in Las Vegas will be an interesting sounding board for the industry’s prospects in 2008 in what is undoubtedly an uncertain global economic climate.”