IABM News

Headline	IABM Industry Trends Survey - Order Volumes Robust but Squeeze on Margins
Article	The June 2008 Industry Trends Survey of IABM members reflects a notable change of sentiment amongst senior executives in the broadcast and media technology sector. Current order volumes are still robust but there is increasing softness in the selling prices with a consequent squeeze on margins. 55% of respondents reported orders as expected with 32% reporting better orders than expected. CEO Roger Stanwell commented “The overall level of confidence going forward is markedly down compared to previous surveys. Those respondents whose confidence has diminished have increased significantly. It looks as if suppliers will face challenging times in the quarters ahead.” For the first time, Asia has moved ahead of North America as the most active market after Western Europe. Whilst, to some extent, this reflects the demography of the survey base, it is the first time that this has occurred. Whether this is due to business transacted ahead of the Beijing Olympics, a cooling in North America or more complex factors, remains to be seen. “More companies are predicting increased costs in the next period but few are planning to reduce R& D expenditure. When this is combined with the softness of selling prices mentioned earlier, it will produce some important challenges for senior executives in the coming months.” Stanwell said.
Company	IABM
Date Published	9/6/2008