By: Lorena Stapff
The last version of InfoComm, held in Orlando, Florida, between June 16 and 19 served to understand that, despite the crisis, the audio and video segment is still healthy, a fact that can be attributed, apparently, to the emergence of a sector such as education, which is consuming a significant amount of technology, but also to the development of new, more energy-efficient solutions, such as LED screens and integration and automation modules.
But in addition to the above, the presence of exhibitors from all over the globe, mainly Asian and European, was a sign that for the moment opportunities continue to present themselves and businesses grow. Undoubtedly, the sectors in which greater dynamism is seen are flat screens (the appearance of solutions of greater definition and lower thickness, but also with tactile and interactive possibilities), video conferencing equipment (increasingly with greater definition of sound, portability, range and wireless capabilities) and equipment for the professional production segment of A / V, which is still a sector that invests significant amounts of resources
A rather surprising fact was the abundant presence of Latin American personnel, which is a positive sign that indicates that the region is developing more and more as a market; Additionally, it is important to note that in the environment the region is perceived as an area that applies and consumes cutting-edge solutions in terms of audio and video.
AVI LATINOAMÉRICA interviewed representatives of four companies -Milestone AV Technologies, Crestron, Turning Technologies and X2O Media-, with whom the real impact of the crisis on business was analyzed and there was even time to know their opinions on the highlights of the 2009 version of this renowned exhibition.
Crisis, but projects continue
It is important to comment that, fortunately for those who are in this business, the crisis has not resulted in the massive cancellation of projects, however, their execution or the release of budgets have been delayed.
However, it is important that it is the business managers who explain the different dynamics that have been perceived in the industry during the last months, which, in any case, can be classified as positive.
An interesting element is the continued growth of the A/V segment in general, within which sales of flat panel displays continue to rise, something that is a direct benefit to manufacturers of accessories, such as mounting brackets. "Digital signage, hospitality, meeting rooms and video conferencing are some of the markets that are growing and evolving from traditional CRT solutions to flat screens," said Jan Mergen, milestone's director of international sales, who also noted that the impact of the crisis has been felt, above all, in the need for each project to prove its return on investment (ROI). as well as a delay in the approval of budgets.
For Turning Technologies, a company dedicated to the development of solutions for teleresponsive, the good performance in sectors such as education, in which sales have grown during the last year, somewhat compensated for any blow that the firm could have received from sectors such as corporate and professional A / V. According to Chris Battles, channel development manager of the international division of this company, one of the reasons for the success in selling these solutions to the education sector is that "studies have shown that students who use response systems in the classroom perform 15% (on average) better than those who do not (...) we have also observed that the corporate A/V segment is going in the same direction, which is why we believe growth will continue."
For her part, María Porco, vice president of business development at X2O Media, a company dedicated to the development of content software for digital signage solutions, has also not perceived a notable reduction in business flow. What has been seen, he said, is a delay in the start of the projects that were defined for some time, as well as delays in the approval of the budgets.
Immediate future for each sector
It is undeniable that the control of energy demand has become the paradigm of virtually any industry, including A/V. In the latter case, however, it is important to add the constant need for greater definition, both in audio and video, which is a need of almost all segments where it is used, including residential, a niche that is becoming stronger.
Faced with the energy issue, Manuel Montoya, crestron's director for Latin America, explained that the trend of the industry, at least as far as this company is concerned, leans towards "the issue of high definition video signals and solutions for energy saving (...) In relation to energy saving solutions, there is (a) great trend towards devices for management and administration, where the fact of having a centralized automation system controlling and monitoring all audio and video equipment, added this to lighting systems, HVAC, curtains, blinds and other devices that interact with each other in venues such as boardrooms or auditoriums to name a few, has been shown to produce large savings in energy consumption."
In the teleresponsive sector, the trend is for such solutions to become more common, economical and easy to use, as explained by Chris Battles of Turning Technologies. The executive commented that "the response technology for audiences is still very new for the common people. Almost a decade ago, these solutions had almost prohibitive values, in addition to the fact that their use was quite complex, which resulted in it not being massified (...) Over the past eight years, this technology has fallen dramatically in price and has become much easier to use, just like any expanded software solution on the market. This has meant that its use has grown significantly."
As far as digital signage and video are concerned, there are also changes. Faced with the first segment, María Porco, from X2O Media, commented that this (digital signage) is an area in which we are seeing an increase in the development of interactive screens. "We also expect new project developments that include the interaction of screens with devices such as cell phones and RFID readers, which will grow in the next two years," she said.
But in addition to interactivity, screens are increasingly moving towards a redesign in their hardware. According to Jan Mergen, from Milestone, "one of the big trends in our segment is that flat screens are getting thinner, which is a challenge for the development team of companies like ours, all to design screens that complement the characteristics of today's TVs."
How is the A/V segment doing in Latin America?
It is undeniable that the economic crisis has put its grain of sand in the mooring that businesses had in all regions of the world so far this year, including Latin America. In some of the economies where there was currency devaluation, project implementation had significant delays, as well as portfolio recovery. Everything seems to indicate, according to the testimonies of some of the interviewees, that the situation changed and improved for the second quarter of 2009, far exceeding what was obtained during the first three months of the year.
And to continue with the above, the executives provided information that will be of great importance to understand the terrain in which Latin America moves today.
For Jan Mergen, the region is a developing market that is consolidated in the migration of conventional CRT TVs to flat screens. "There are well-established retail chains and professional A/V distributors/wholesalers that offer the market a broad portfolio of complete solutions for their customers. Such conditions present an environment of opportunity for assembly manufacturers, such as Chief," he noted.
And it is that what Mergen raised in the sense of distribution chains was somehow confirmed by Montoya, when he said that "every time Latin America is a more mature market", and added that there has been a strong demand in some territories for solutions for the integration and / or automation of A / V systems, mainly in segments such as residential, corporate and hotel.
But in addition to the segments mentioned by Montoya, there is one that is consolidated as a great user of A/V systems in the region: the educational one. This is perceived in the case of Turning Technologies and its audience response systems. "The systems are commonly used in events organized by A/V companies and it is very common for end customers to rent a set of systems for a certain event. However, the important thing is that, as perceived in the United States, the market is changing and more and more people decide to buy the response system as it evolves and the benefits of this technology are perceived."
For her part, María Porco, explained that in Latin America the expansion of digital signage technology is driving the commercialization of many related components. "In addition to the software that our company sells, a typical digital signage system includes the purchase of screens, network equipment, assemblies, wiring, among other solutions," he explained and later assured that if someone, for example, wants to "throw away" a digital signage network for communications purposes, they will usually want to update their conference room technology, which will open up opportunities for marketers and other components and devices.
Thus, based on all the above, it is important to outline several conclusions. To begin with, it is worth bearing in mind that the A/V industry has not been particularly affected by the economic crisis, although the release of budgets and the execution of projects have been a little delayed. There are several important trends in the environment, particularly with regard to energy saving, integration and mobility. Latin America, fortunately, is taking on these technologies well, so for the time being you can expect at least two years of continuous development for the A/V sector on this side of the world.
Box 1
The Latin Group of InfoComm
No less than impressive is the nickname that can be given to the massive attendance that had the meeting of the Latino group of InfoComm, during the last version of this fair, held in Orlando, Florida, last June.
The most important thing about the day is the active participation of Latino staff in this meeting, which is a sign of the development that the region is experiencing in the face of new audio and video technologies. The meeting explored various aspects of the industry in the region, which, globally, reaches a volume of U$75 billion.
One of the elements that was addressed and that emerges from one of the meetings held by the association in Colombia, is that the market faces a lack of knowledge on the part of the final client, which has led to decision-making based on price, to which is added some incidents in the bidding field, mainly with regard to the government sector.
No less important was the mention regarding the possible disloyalty in the market, disrespecting the distribution chains, something that if not stopped could affect the development of the industry in Latin America.
But, in a positive way is the launch of a page in Spanish by InfoComm, in which members and interested parties will be able to know the activities with which the institution intends to reduce the gaps in education and knowledge, as well as increase aspects such as networking among its members in this area. Those who are interested in knowing these activities can enter http://www.infocomm.org/cps/rde/xchg/infocomm/hs.xsl/7105.htm
