Audio-Video and the Supply Chain Crisis

If you watch the news or visit any retail store, you know the current supply chain and inflation problem plaguing the United States. From groceries to fuel and holiday gifts, we are all feeling the pinch. And so is the audio-video industry.

We know that you have questions, and we want to provide answers. In this blog, I will review the supply chain protocols at Audio-Video Group and answer some of your questions. If, after reading the blog, you still have questions, please get in touch with us.

Audio-Video Supply Chain: It Is in The Chips

You may have seen the photos on social media of lots full of new cars waiting for a computer chip. As international chip manufacturers slowed production during the height of the COVID-19 pandemic, the need for chips surged.

At-home entertainment and new Work from Home (WFH) offices created a surprise surge in demand for chips. Supply chain problems first hit the auto industry, and AV integrators soon felt the impact.

Here is how the surge in demand hit the professional audio-video environment:

“One of the main culprits of the chip shortage are display drivers that send instructions for illuminating screens on displays, which is impacting virtually anything with a screen, including digital signage, video walls, projectors, touchscreens, and more.”– Cepro

We recently wrote about video walls and trends for 2022. As video walls are trending in schools, retail, hospitals, business centers, and churches, the demand hit whiplash.

The Supply Chain and Audio-Video Integrators

As audio-video integrators in the DMV regions, we have always kept a close eye on the audio-video supply chain and pricing. Audio-Video Group is in constant contact with our professional AV suppliers and partners.

Through our communication channels, we began to hear about supply problems and the resulting increase in cost in Q1, 2021. If you received our recent newsletter, you read a statement from one of our channel partners, Samsung. Here is a quote from recent correspondence with Samsung:

Due to these extreme circumstances, we have no other choice than to make the previously announced 5% increase permanent and implement an additional 6% increase on all sales invoices effective January 1st, 2022.”

The supply chain dilemma has hit every link and partner in 2021, but Audio-Video Group has planned for 2022.

AV Installs: Timing is Important

If you are planning an AV implementation in 2022, now is the time to spec your project so that our staff can alert channel partners to the project needs. If delivery may be delayed for weeks to months, now is the time to join the waitlist.

Purchasing now may also provide a price break. As you read in the statement from Samsung, partners are often offered a sales window before a price increase. Additionally, shipping costs are continuing to rise. Even if you plan to upgrade your AV solution in the second half of 2022, you may save on shipping costs by placing your order now.

Adjust the AV Install Plan

It may be time to adjust your AV install plan. Perhaps, the same end-solution can be obtained with different products, or your overall project can be broken into smaller stages. We are here to review your plan and help your organization pivot.

Managing an AV integration is the cornerstone of Audio-Video Group. Let us review your goals and suggest a different path.

Crucial AV Project Communication

Audio-Video Group depends on relationships formed over the years in the industry. Our team is in constant communication with AV channel partners. We remain visible in the chain, and we make our needs known.

Do we know what to expect in 2022? Not really. No one does. We all reflect on 2019. At that time, none of us knew that a worldwide pandemic was lurking just around the next corner. But we can promise that the Audio-Video Group will be in communication with your organization every step of the way.

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