In 2021, we wrote a blog entry about supply chain challenges and how to mitigate the risk to your upcoming AV projects (below). Those issues are still plaguing the AV industry and they are now impacting budgets and product choices for projects, in addition to timelines.

We believe that honesty and transparency is the foundation of all successful business relationships. Supply chain challenges, product availability and fluctuating prices are real issues that we face each day, and we are upfront with clients about what we can (and can't) do in response. Here are just some of the steps we are taking to mitigate the impact of these significant challenges:

• We are pre-ordering and stocking some of the most common equipment clients use for AV integration and collaboration systems projects.
• We have dedicated resources towards sourcing like-for-like alternatives so we can act quickly when one product can't be sourced in time.
• We are designing project phases that accomplish minimum functionality by specific dates when there are business or sourcing reasons that a project can't be completed contiguously.
• When clients have a critical meeting that could be impacted by supply chain challenges, we leverage the people and equipment of our Event Staging division to make sure that meeting happens.
• We have the right relationships with a diverse set of suppliers to offer creative solutions in AV and collaboration projects.
• We invest in our team and have in-house experts to solve complex AV engineering challenges.
• We actively seek cutting-edge technology that can accomplish the goals of a project in non-traditional ways, most recently with new broadcasting technology and skills.

Original post from June 2021:

In a world where we can purchase most anything online and either pick it up in the store in an hour or have it delivered tomorrow, we have begun to expect that level of speed in many areas of business and life. But, just because we have that expectation doesn’t mean that it’s realistic. Professional AV projects require time to be planned and executed properly.  Equipment must be scoped, engineered, procured, shipped, configured, tested, and installed and each of those steps requires time. 

The pandemic began causing supply chain challenges last year, and we experienced extended lead times and more frequent issues with procurement of equipment for projects.  Unfortunately, those issues are expanding and we are beginning to see significant impact on project timelines.

In addition to supply chain issues, costs are increasing for both products and shipping. The cost for shipping containers has increased by 2x-5x over previous costs, causing significant spikes. In response to this volatility, more than half of the major AV equipment suppliers have announced upcoming price increases and much stricter quoting timelines than we’ve seen in the past.

If you are planning an AV project for late 2021 or early 2022, here are three steps you can take now to mitigate the risk and impact of cost increases and longer lead times:

1. Advance the timeline for scoping and engineering your project so that you can place orders before price increases go into effect. Many equipment manufacturers have announced July 1 pricing increases, and some expect another temporary price bump within a few months.
2. Be prepared to act quickly when you receive quotes for your projects.  Many manufacturers are now enforcing strict quoting windows, meaning you may only have 20-30 days to act to lock in equipment prices.
3. Build in longer lead times and higher costs if you are just beginning to plan a project. A reasonable assumption now is to expect that previous procurement and shipping time will increase by a minimum of 2-4 additional weeks, and your budget should include an additional 10% on standard equipment costs.

Questions about how this could impact your project?

If you have questions about how increasing lead times and costs may impact your AV project, drop us a note below and we can schedule a conversation.

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