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Supplier confidence strengthens through 2007

January 8, 2008

Broadcast and media technology suppliers are upbeat about the global market. Confidence levels have improved through 2007 based on the latest International Association of Broadcast Manufacturers (IABM )Industry Trends Survey undertaken by Ernst & Young LLP. The IABM represents broadcast and media technology suppliers worldwide.

Respondents seeing increased or significantly increased confidence outnumbered those seeing decreased confidence by 7:1 and up from 4:1 earlier in the year. The 12 month outlook is good too with a 7:1 ratio up from 6:1 in the Spring. According to IABM CEO Roger Crumpton, “this reflects our own analysis and confirms how strong the market has been in 2007. The outlook is good but there are indications of financial pressures on the horizon.”

Margins are suffering though, selling prices are seeing some downward pressure and cost prices are rising. 20 per cent of respondents commented on falling prices compared to 2 per cent reporting an increase – a ratio of 10:1. This is primarily due to the impact of the dollar exchange rate in the Europe, Middle East and Africa region. This again confirms other IABM research that suggests prices are falling at an average 5 per cent per annum.

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