Current Issues Impacting the Audio Visual Events Industry
With rising inflation, overseas conflicts, and an ongoing pandemic impacting all aspects of everyday life, the events industry has not been spared and is navigating various issues and adapting overall operations for the foreseeable future. Concerning these issues, event organizers need to begin planning as soon as possible (today, if you need the reminder) for upcoming events. Proper planning will ensure you have the equipment you need and the staffing required to manage it, reducing additional stress to an already stressful process. Let’s take a closer look at some of the current issues impacting the industry and what you can do to limit their impact for your next event.
The audio visual industry is currently experiencing a chip supply shortage that will impact production into 2024 and possibly as long as 2025. Due to this, manufacturers are back ordered on most of their audio, video, and lighting equipment. For this reason, we are seeing many more people renting equipment since they are unable to purchase it in a timely fashion. For those that are using previously purchased gear, if there are any issues that need to be repaired, it’s very hard to repair things quickly right now with supply chain issues impacting replacement parts, etc. But for those renting, event production companies renting out equipment are also facing challenges trying to keep their inventory up and running through constant usage. If any problems arise with a piece of equipment, the delays with repairs could force them to move forward with reduced inventory, causing them to turn down future events.
If only we could control the price of gas right now. Many companies are struggling to keep their trucks filled with gas, maintain their fleets, and retain drivers to ensure that deliveries stay on track and on time. Trucking isn’t cheap and this is often something that causes pricing on equipment and deliveries to fluctuate. It’s important to budget more in this area and as always, don’t cut deliveries too close to your deadlines.
COVID-19 and the Events Industry
With the latest strains of COVID-19, vaccinations, and other protective measures, we are not experiencing nearly as many event cancellations as we did in 2021. However, we are seeing a surge in interest in hosting hybrid events. The challenge with the hybrid model is that it can be what we like to call a “multiplier”. With a hybrid event, you are now producing two separate events (in-person and remote) and the complexity of the event increases substantially. In many cases, you need separate teams working on each part of the event; doubling your staffing needs and increasing your overall event budget. During your budgetary planning, please note the cost of moving to a hybrid event could, in some cases, double the cost of audio visual services. Labor and equipment shortages can also make hybrid events more difficult and not everyone will be able to do a large-scale hybrid event due to the high demand and low supply.
Due to the impact of the pandemic, 40-60% of the labor market has left the events industry. Over the past year, we have started to see some of that labor pool return but all of the previous business has already come back and is increasing rapidly. As a result, production and rental companies are being forced to turn down more and more business. Booking your production partner in advance is the key. If you’re not currently talking to an AV company for your Fall 2022 events, it might be too late to acquire your top choice provider. Book early and start planning for 2023 events now!
Interested in learning more? Contact us today!