Co-Founder Holli Hulett highlights how the AV supply sector is built on resilience and mindset in an ever-changing world.
What do we understand by the “AV supply chain” today? Is it the traditional, linear pipeline of manufacturer-distributor-installer, or is that changing?
The traditional AV supply chain hasn’t really changed that much. Yes, there are those trying to sell direct but we’re a true channel partner and believe in the values and virtues of this ethos and route to market, built on solid and sustained relationships. It works! Technology evolves fast, but trust doesn’t. The AV channel still runs on relationships.
How strong is the AV supply chain? What principal pressures has it faced in recent years?
The AV supply chain is stronger and more resilient than ever, despite new and unexpected challenges never far away! The crisis in and around the pandemic has calmed down but the current trade wars and tariffs has created new challenges around the world. There’s some creative thinking going on from some manufacturers about how best to navigate issues. We know Canada is being used more to gain access to the US market. If the last few years have taught us anything, it’s that this industry bends — it doesn’t break.
How serious are supply shortages and issues now – in chips, other components, or finished goods – and how is the supply chain addressing these?
We’re not aware of any supply shortages and issues just now. Manufacturers are constantly looking at ways to reduce their environmental impact which is an on-going focus – from packaging to logistics. The supply chain is in a healthy place.
What has been, and will be, the effect of “Trump’s tariffs” and other restrictions or imposts on international trade? What, if anything, can the supply chain do to mitigate this?
Trump’s tariffs have had a major impact on the market, with some manufacturers trying to distance themselves from China by opening new manufacturing facilities elsewhere such as Thailand and Cambodia. This has inevitably increased costs which for some has not always been worth the exercise.
What other major pressures does the AV supply chain face today – e.g. skills shortages, cyber- and physical security, inflation, economic slowdowns, sustainability pressures, etc etc – and how is it addressing them?
There’s always pressure on the supply chain. It varies from different territories and organisations. Cyber security is more of a problem in the UK and Europe than the US for example. The AV market is growing and in a strong place. It needs a strong supply chain to continue to accelerate.
What changes or innovations is the AV supply chain making, either in the face of the pressures and challenges discussed above, or because of customer needs, or off its own bat.
Geo-political pressure continues to be a concern but generally the supply chain is in a good place. Logistics is becoming more and more streamlined and efficient. Stock is available to our customers anywhere around the world, often next day.
It’s said that every chain has its weakest link. So what’s the ‘weakest link’ in the AV supply chain, and how can it be strengthened?
For us every link of the supply chain is just as important as the next. From manufacturers, to distributors, resellers and their end customers it’s about understanding needs and maximising relationships and common goals. We are all in this together. Any problems would create a domino effect that needs to be minimised.
How are the AV supply chain, and the issues it faces, likely to change and develop over the next few years?
Geo-political pressures are a constant moving target but for now at least that headache is causing pain but not in an extreme way. We take the approach of being flexible and agile and trying to move with the changing times so that we can better serve our customers in an open-minded way. It’s about trying to stay one step ahead of the game. Resilience isn’t just about supply anymore - it’s about mindset. Boom is in great shape and performing as strongly as ever.