Pro AV Forecast: Peaks and Valleys?
AV companies are at it again. You’re reporting growing sales, surging cash balances, and two-year-high gross margins. What’s not to love about these business conditions?
“We are seeing a strong uptick in all the AV indicators,” reports Frank Coker, CEO of CoreConnex, which recently published a new InfoComm AV Industry Index, based on real-world business data from companies that take adavantage of the Corelytics Financial Dashboard software through InfoComm. ”Our big caution is that this is somewhat of a repeat of a spike we saw last year that was followed by several months of downtrend. Our research shows that seasonal patterns have not been consistent over the past four years, so we shouldn’t assume a pullback is inevitable, but caution would be appropriate.”
In a nutshell, according to InfoComm members who use the dashboard, monthly sales growth is up 16 percent over six months, gross margins are up almost 50 percent for the same period, and the rise in cash balanaces is almost off the charts.
Ken LaCroix, CEO of TrackPoint Business Advisors, one of several companies available to advise AV comnpanies through the Corelytics program, expects companies to put fresh capital to use to drive profits. He notes that sales trends have been variable, but are pointed up, and advises AV firms to manage margins and cash to remain healthy.
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