Audio and Video Equipment Manufacturing Industry Profile

The US audio and video equipment manufacturing industry includes about 450 companies with combined annual revenue of about $7 billion. Major companies include Harman International, Bose, and US manufacturing divisions of foreign companies like Panasonic and Toshiba. The industry is highly concentrated: the 50 largest companies have almost 90 percent of overall revenue.

COMPETITIVE LANDSCAPE

Demand is driven by consumer income and the rate of product innovation. The profitability of individual companies depends on manufacturing efficiency and effective marketing and distribution. Large companies have advantages in economies of scale in manufacturing, marketing, and distribution. Small companies can compete effectively by offering specialty products or components in system solutions, such as speakers in a home theatre system. The industry is capital-intensive: average annual revenue per worker is about $450,000 per year.

Audio and video equipment competes with PCs and game consoles in the consumer home entertainment market. PCs and game consoles are covered in profiles of the Computer Manufacture and Electronic Gaming Products industries.

US manufacturers of audio and video equipment face significant foreign competition. The majority of the equipment sold in the US is now manufactured elsewhere; consequently, employment in the US audio and video equipment manufacturing industry has dropped about 60 percent in the last decade.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include TVs, auto and home stereos, speakers, DVD/VCR players, Blu-ray players, and camcorders.

Audio and video equipment manufacturers depend on product engineers to design new products that ...