ICIA Independent Design Consultant Bid Survey Shows Healthy Growth

Average Project Size is Up 59% and LANs Play Larger Role in AV

FAIRFAX, VA, May 28, 2004 - The International Communications Industries Association, Inc.® (ICIA®) has announced the release of its 2004 ICAT Bid Survey. Based on responses from ICIA's Independent Design Consultant members, the survey presents valuable information about the size and growth of the consultant -led AV design market.

Terry Caywood, Director of Marketing at The Sextant Group, Inc., who provided industry -expert commentary on the survey report, said that the AV industry has experienced significant changes and pressures in the past few years, including "rapid technology changes; good clients increasingly slow to pay; new clients requesting reduced fees. We've even witnessed other firms (thankfully, not us) who have had the heartbreak of laying off good people."
Caywood also noted that, "One of the problems of dealing with this stressful time is that as you run harder just to keep up, sometimes you can lose sight of the big picture. A lack of vision can severely hamper the ability to weather the storm, in a time when perspective is precisely what will lead us through and make us a better business. The 2004 ICAT Bid Survey provides us a window into some of that perspective."
The economic clout of the firms who participated in the study is impressive; the value of systems designed by these companies represents $750 million in AV, broadcast/production, data/telecomm, large venue audio and acoustics projects.
In every ICAT survey since 2000, total dollars in AV bids has increased over the previous year by a consistently larger percentage (+23% in 2000, +28% in 2001, +30% in 2002, and +31% this year). Even more encouraging, the trend in percentage annual growth in average AV project size shows an even greater geometric increase: +5% to +8% to +9% to +18% to +59% this year. The average bid size reported is nearly double that of last year. While the median bid size holds steady, a dramatic increase is reported in the largest bids.
Other observations from survey data include:
• A trend toward favoring qualified bids (pre -qualified AV integrators) over low bids. Less than a third of projects were awarded to a low bidder.
• A significant shift of dollars away from education and healthcare sectors and toward corporate and government.
• Concurrent with these shifts, the median bid value increased in every sector, including public assembly.
As a sign of the increasing convergence between AV and IT systems, the survey showed that an owner's Local Area Network (LAN) was used as a necessary component in more than 80% of AV systems.
Overall, the consultant -led AV design market has been showing healthy growth over the past five years and continued to grow in 2003.
Copies of the 2004 ICAT Bid Survey may be purchased in the ICIA 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 professional audiovisual communications industry. ICIA is the founder of InfoComm, the conference and trade exposition for audiovisual communications professionals who come to learn about the latest technologies and available services as well as new and alternative applications. In early 2003, ICIA and two other associations - - CEDIA and NSCA - - launched Integrated Systems Events to serve their collective memberships in Europe and Asia. ICIA serves its worldwide membership as the pre -eminent provider of AV education, training and certification.

ICIA and its foundation, the International Communications Industries Foundation, Inc.® (ICIF®) established a market intelligence program in early 2003. The purpose of the program is to facilitate the process of finding relevant market information and increase the number of available market reports covering the AV industry. ICIA's Market Intelligence program includes primary research, and also acts as a referral service to research conducted by market analyst partners. More information about this program is available under Market Intelligence at www.infocomm.org.

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