industry recovery
Growth returns to the broadcast technology industry, reports Peter White, director general of the IABM.
An optimistic outlook W
ith around 300 members worldwide representing at least 80% of the global broadcast technology market, the IABM
has its finger on the pulse of one of today’s most interesting and volatile sectors. So where do things stand, now that we’ve all plunged headlong into 2011?
One reliable bellwether for the upcoming year is the IABM Annual Conference, a December gathering of members, media end user customers, and industry visionaries to discuss current and upcoming issues shaping the industry. Closing out the year in the midst of a London snow storm, the 2010 conference was a resounding success and more than lived up to its theme ‘Strategies for growth - responding to the new paradigm’. Sessions focused on understanding the new customer requirements of today’s complex broadcasting world, and how to align customer needs with employees that are trained, engaged, and motivated to deliver. As to the overall state of the industry, here are the takeaways:
We’re nothing if not resilient
A sense of optimism pervaded the 2010 Annual Conference, and for good reason. Following the global recession, it’s now clear that growth has returned to the broadcast manufacturing sector. As indicated by the December 2010 IABM Industry Index, last spring marked the turning point for year-on- year sales and the number has been climbing steadily since. Profits have followed a similar but slightly delayed pattern, with the steady climb beginning late last summer. While Europe had begun to recover at the end of 2009 and is now showing quite impressive year-on-year profit growth, the converse is true in North America, where the decline from Q4 2009 onwards was truly spectacular - and the market remained depressed until the following spring, when true
signs of recovery began to emerge. In fact, the last IABM Global Market Study reflected a North American market at least six months behind the rest of the world in rebounding from the global recession, but trends and expectations do indicate a more rapid improvement going forward.
Although tempered by continued uncertainty in some regions (particularly the Euro zone), confidence in the industry continues to grow. According to the latest IABM Industry Trends Survey, North American respondents in particular are very confident about 2011 as evidenced by increasing investment in research and development as well as headcount. In general, executives feel optimistic about the months ahead, with 46% stating that market conditions will significantly improve by spring. This is borne out by the latest survey, in which the ‘IABM Confidence Ratio’, which stood at minus three during the height of the recession, is now at a very respectable +11.
Of course, there are caveats
Meeting customer requirements and heightened expectations will continue to be a complex proposition for suppliers going forward. Broadcasters now expect more than ever from their equipment providers: enhanced value for money, better connectivity and integration with IT, continual release of innovative new solutions while providing better support for existing solutions, a wider range of services . . . the list goes on. Furthermore, broadcasting customers are more skeptical of supplier promises and product claims, based on instances of over-selling and under-delivery. From the suppliers' point of view, there is a tendency for broadcasters to ‘move the goalposts’ on specifications and require too much customisation. The upshot is a pressing need for suppliers and broadcasters to develop better ongoing dialogue and understanding of each other’s requirements and limitations, and work together in a
mutually beneficial and successful manner.
A worldwide broadcasting industry that is in steady recovery, although somewhat lagging in North
America, is the overall picture painted by the latest IABM
Industry Trends Survey and supported by the optimistic mood at the 2010 IABM Annual Conference.
In addition, supplier companies continue to be challenged by manufacturing capacity and supply chain problems that frustrate order fulfillment, and customer deferral of orders remains the largest limitation to order growth.
Education is key
One of the most significant constraints facing supplier companies - presenting a further barrier to growth, completion of work in progress, and order fulfillment - is a shortage of skilled technical resources within the broadcast and media technology businesses. But the IABM has risen to the challenge. At the December conference, attendees got a sneak peak at our newly launched IABM Training Academy - a global initiative designed to increase the pool of skilled broadcast engineers and technical staff. Led by Roger Crumpton, IABM director of education, employment and training, the new programme will include close collaboration with colleges and universities, induction training for graduates, and continuous professional development for established engineers.
To sum up
A worldwide broadcasting industry that is in steady recovery, although somewhat lagging in North America, is the overall picture painted by the latest IABM Industry Trends Survey and supported by the optimistic mood at the 2010 IABM Annual Conference. In particular, the North American marketplace will see dynamic change in the coming months as it catches up with the rest of the world in its recovery. Following this, we can expect stabilisation and steady growth heading into the quadrennial year of 2012, with major broadcasting events such as the Olympic Games and the European Football Championships on the horizon.
www.ibeweb.com l january/february 2011 l ibe l 11
iabm
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