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IABM Survey: Order Volumes Robust but Squeeze on Margins
Worcester, WR1 2JG, UK - Jun 9, 2008 - The June 2008 Industry Trends Survey of International Association of Broadcasting Manufacturers (IABM) members reflects a change of sentiment among senior executives in broadcast and media technology. Current order volumes are still robust but there is increasing softness in the selling prices with a consequent squeeze on margins. 55 percent of respondents reported orders as expected with 32 percent reporting better orders than expected.
According to the IABM, 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. The IABM speculates that this could be due to business transacted ahead of the Beijing Olympics, the soft economy in North America or more complex factors.
IABM CEO Roger Stanwell said, "More companies are predicting increased costs in the next period but few are planning to reduce R&D expenditures. When this is combined with the softness of selling prices, it will produce some important challenges for senior executives in the coming months."
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