The research (conducted as before by Business Diagnostics) draws on a number of sources, principally PLASA members, but is also supported by a broader market analysis. The findings indicate that the UK market in 2001, in terms of user expenditure (and excluding any cross-selling among suppliers) is worth £1,139m. That figure has been broken down into five main product categories: professional lighting is valued at £229m, pro audio for presentation and performance purposes at £332m, pro audio for architectural or commercial purposes (e.g. voice alarm, public address systems) at £49m, staging at £44m and professional AV at £485m.
It’s clear from the research that the market has been detrimentally affected by several factors - among them global recession, 11 September and the resulting global insecurity, domestic events such as the outbreak of foot and mouth, and the return to ‘normality’ following the millennium year.
Many people’s fears of the market shrinking are not borne out by the research, though it’s clear that the rate of growth is slowing down - following a period of sustained growth up to the year 2000 it has slowed to 8% in the year 2000 to 2001. The traditional PLASA product areas of professional lighting and staging have been sluggish, the main growth coming from the AV and pro audio markets (particularly architectural and commercial pro audio). Growth in the pro audio market has been steady, if unspectacular, with higher growth recorded in architectural and commercial products, such as public address systems, voice alarms and other security systems.
The market to watch is the one for AV products and services. This continues to grow, although the 13% growth recorded in the last year is considerably lower than the 21% predicted in PLASA’s baseline survey in 2000. Indeed, for all product categories, growth has been lower than predicted at the start of 2001.
Looking forward to 2002, respondents to the PLASA Industry Survey 2001 are bullish, predicting a 9% growth from 2001 to 2002. However, these survey responses were given in early 2002 and there is considerable anecdotal evidence that the market in 2002 may be flatter than expected for all product groups. It seems likely, therefore, that growth during 2002 is set to be closer to 2001 levels than to those predicted by suppliers in early 2002.
Another indicator of growth is staffing levels, and suppliers expect their staff numbers to increase by an average of 7% over the next year. Again, there is considerable anecdotal evidence to suggest that these claims are over-optimistic. As with anticipated revenue increases, PLASA expects the actual increase to be more modest than the above figures. Skills shortage remains an issue. Concern has been expressed about both this and the absence of formal training schemes to nurture and develop these skills.
In general, the traditional entertainment sectors, namely performing arts, night venues, amusements and attractions and concerts and touring, have all been flat over the last year (indeed, the latter has declined in value). The main growth sectors are therefore architectural & building services, broadcasting & film, DJ retail and education. In fact, overall market growth has been heavily reliant on the architectural & building services sector.
Moving to a wider picture, the global industry is estimated to be worth a minimum of £11.4bn, although there are those that put this figure closer to £13bn.
If you would like to order or know more about any of the PLASA Industry Survey Reports, contact Helen Willis at the PLASA office on +44 (0)1323 410335.
