Broadcast and media technology suppliers in Europe and North America are experiencing a 40% year on year profit growth according to the Q3 Industry Index published by the IABM, with European manufacturers revealing better return on sales figures than their North American counterparts over the period, writes Fergal Ringrose.
The group of more than 50 broadcast technology suppliers tracked in the Index represent more than $6bn of sales over the last year. Companies based in North America account for 58% of this figure and companies registered in Europe 42%.
Whilst North American companies can claim a greater portion of global turnover, market profitability for European manufacturers is improving at a much higher rate year on year than their North American counterparts. Overall the broadcast and media technology supply industry is experiencing a healthy 14% year on year sales increase. Growth rates in North America and Europe appear to be converging with the former's growth rate one or two percentage points in the lead.
IABM chief executive Roger Crumpton said: "The sector is very successful at the moment with improving profits, a healthy growth in sales volumes overall and a creditable 11 per cent profit to sales ratio. Companies in Europe are performing slightly better than their North American counterparts. This is due to European market diversity and the rapid take up of HD facilities in acquisition and production even though the playout is still SD dominated.
"Globally the industry is bristling with activity; broadcasters are demanding more content and need the facilities to generate it quickly, efficiently and skilfully."