Current business is said to be good with orders still strong. But current economic conditions - including the falling price of the dollar against the Euro and the Pound - are making imported goods cheaper.
While industry specific trends such as the increased use of commodity IT products within broadcasting is causing selling prices to fall.
The combination of these factors is resulting in the manufacturing sector being less optimistic about the year ahead.
“The confidence that the senior managers in the supply community have has softened,” explained IABM (International Association of Broadcasting Manufacturers) director Roger Crumpton. “It's softened because selling prices are falling and cost prices are rising. The outlook is less assured for the quarters ahead than it has been for the last year.”
However, Crumpton believes it is too early to predict whether or not the market is heading for a major meltdown.
“I think we're going to see an economic slow-down,” he said. “But what is difficult to evaluate is the extent to which the roll-out of HD and updating operating infrastructures will be sufficient to offset any underlying economic conditions that may hold back companies from investing.”
The IABM Industry Trends Survey polls the views of senior executives in member companies. It is undertaken every six months in association with Ernst & Young.