AV Magazine
The UK industry may be pretty tightly-knit – everyone knows everyone – but it’s definitely cosmopolitan in its outlook. That won’t change, deal-or-no-deal trade deal this time next year, but the ramifications of the 2016 EU Referendum underscore are still not settled.
Leaving Brexit aside for a moment, let’s place UK AV on the world map. Exterity CEO Colin Farquhar says the country is world renowned for its innovative use of AV tech. “Many international companies use the UK as a base to refine their requirements for global rollout,” he says. “Oddly, while the scale of projects we were involved in a year ago dropped slightly, this year we’ve seen the number and scale of tenders growing driven by refits in corporate builds and new facilities.”
Innovation on a global scale
Steve Selwyn, CEO, Mirage Associates (Dataton’s partner in the UK) agrees. “In my experience, some of the major mature markets tend to be quite segmented geographically. The UK AV industry, though, is creative and very international in its scope. It has been the ‘go to’ when it comes to major projects, regardless of the country of origin. Maybe it’s because there is a solid depth of knowledge accrued over many years and a willingness to share that knowledge.”
Steve Selwyn, CEO, Mirage Associates (Dataton’s partner in the UK) agrees. “In my experience, some of the major mature markets tend to be quite segmented geographically. The UK AV industry, though, is creative and very international in its scope. It has been the ‘go to’ when it comes to major projects, regardless of the country of origin. Maybe it’s because there is a solid depth of knowledge accrued over many years and a willingness to share that knowledge.”
This leading position is confirmed by Ian Sadler, sales manager at Cabletime: “The globalisation of businesses has meant that customers take a more cookie cutter approach, so that all offices in all locations are using the same systems. We find that the UK leads the way in design and implementation and this gets spread out among international offices.”
Mike McHale, Kramer’s local manager deems the market noteworthy for the complexity of its AV installations and commends the domestic corporate culture for its willingness to embrace new technologies.
“Changes in funding methods for UK universities have driven a very high level of investment in AV compared to the rest of Europe,” he says. “The City of London, being the largest financial centre in Europe and a big consumer of AV for meeting rooms and VC, is also a significant differentiator.”
Liam Hayter, workflow and solutions architect, NewTek EMEA dubs the UK “less risk-adverse” than others and “more willing to adopt new approaches and methodologies. In short, it’s a far more agile market.”
Liam Hayter, workflow and solutions architect, NewTek EMEA dubs the UK “less risk-adverse” than others and “more willing to adopt new approaches and methodologies. In short, it’s a far more agile market.”
With a bird’s eye view of trends across the globe, B-Tech AV Mounts is left feeling that the UK and Ireland are playing catch-up with Asia and the US at least when it comes to digital signage.
“For example, despite healthy sales in the UK, uptake of LED has been outperformed by our operations in Europe and APAC,” says Mark Walker, director of operations. “So, from a UK and Ireland perspective, there is still lots of room for growth, which is great for the market.”
The upgrade of interactive whiteboards (IWBs) to interactive flat panel displays (IFPDs) is currently the primary driver behind demand in the UK education market. According to Promethean’s Alistair Hayward: “Adoption of IWBs and IFPDs in the UK is at least three years ahead of any other country – this is supported by the excellent knowledge and capability of the AV channel.”
However, in the K12 class, “budget challenges and political uncertainty” has led to schools protecting staff salaries as a precaution, while AV and ICT have taken a back seat.
“In the wake of the General Election, we anticipate increased confidence in the market which should see an uplift in spending,” Hayward hopes. “Schools are acutely aware of the benefits of IFPDs in teaching and learning environments and are keen to see investment in edtech.”
Brexit has to be mentioned
Brexit has been top of the agenda for so long that it feels like any significant impact and concerns have already been largely weathered. The dramatic currency shifts back in 2016 are unlikely to be repeated.
Brexit has been top of the agenda for so long that it feels like any significant impact and concerns have already been largely weathered. The dramatic currency shifts back in 2016 are unlikely to be repeated.
“Companies do business with companies, so we are not seeing any political fallout from the UK’s decision to leave the EU,” is McHale’s take. “We are seeing requests to be billed in EUR which is something that we are able to do.”
Exterity, B-Tech, Barco and Mirage all report steady if unspectacular business “despite the continued uncertainty and indeed fears surrounding Brexit for many,” Walker says. “Once it finally gets done, any remaining uncertainty which might be delaying projects will likely get things moving.”
Mark Leahy, key account manager, Barco characterises the situation as “delicately buoyant,” … “Like it or loathe it, Brexit now looks set to happen and the pound should strengthen further, bringing the right sort of focus to the UK along with additional investment.”
“Rental companies are very busy and the projects seem just as big and technically challenging as ever,” reports Selwyn.
“It’s been very difficult to calculate the impact of Brexit,” says Hayter. “People have certainly been more cautious with spend this year. However, this has necessitated more content to be produced, for corporate townhalls, earnings calls and other general on-going communications.”.
The jobs that are already in the pipeline are moving forward, “but no one is following through on plans to move into new offices, or investing in new buildings until they know what will happen,” reports Sadler. “There is no lack of interest, but who wants to be accused of making the wrong decision at this stage? Certainty it will allow people to move in a particular direction.”
Government-backed investment “is most likely to see an increase in digital signage and information display, projects in hospitals, waiting rooms, bus stations and travel termini,” he says. “Traditionally, of course, AV and IT installations for public services were specified and installed separately, but now we will see the technologies working in tandem on an IP network.”
The promised construction of new hospitals over the next few years will deliver control room and signage installs in medical and training facilities. Decisions on efficiency savings can also bring opportunities.
“The ongoing Northern Ireland Courts project and HMRC projects demonstrate a desire to achieve better value for tax payers,” says McHale. “Government departments are embracing home working and more flexible attitudes to employment which in turn is driving investments in meeting rooms and VC facilities.”
He also notes customers taking more of an interest in efforts to improve the sustainability of packaging. “They are asking questions about our use of plastics, the recyclability of our packaging and how much of our packaging uses recycled materials.”
Compliance is increasingly important, particularly to banks, financial services companies and law firms. Sadler says. “They need very strict control over who sees what content, and to ensure the complete chain is secure. You can’t just turn up as a user, insert a USB stick and expect to watch your wedding video. Data moving around the corporate network must go through an approved admin process.”
In summary then, Joe Crawley, regional sales manager, disguise, says the UK “is full of some of the most experienced operators and invested parties, which gives the region a real advantage in terms of quality and industry knowledge.”
A showcase for the UK’s superiority may arise from the mud of the Thames estuary by 2024 if the £3.5bn planned London Resort is built. Before then, several AV firms are focused on delivering for the EXPO 2020 in Dubai.
“In addition to the legacy structures which will remain following the end of the EXPO, each country participating will submit their own national pavilions, the vast majority of which will utilise extensive AV elements,” says Crawley. “It’s something we’re super excited about for this year!”
Republic of Ireland
The UK’s relationship with the republic of Ireland has been thrown into sharp focus because of Brexit.
The UK’s relationship with the republic of Ireland has been thrown into sharp focus because of Brexit.
“There is a concern among Irish customers that VAT would be chargeable immediately on import from the UK, that tariffs could be introduced, and prices will rise,” says McHale, who says Kramer has prepared contingency plans for customers who are anxious about this, meaning goods destined for Ireland can stay within the single market.
“Irish buyers are very pro-European and are worried about (Brexit) because, as a big trading partner, they don’t know what the rules will be,” says Sadler. “A few years back a lot of big companies were investing (in Ireland) because of tax relief, but during the recession these companies pulled the plug. Now we can see green shoots of recovery, and cranes on the Dublin skyline again, thanks to EU grants.”
He adds: “AV business in Ireland is all about big conglomerates which need multiple AV systems for their new buildings. I can’t see Brexit impacting on the overall demand for AV because the market is expanding, and is unlikely to change.”
Lower corporation taxes, in comparison to other EU countries, have made Ireland a haven for technology giants. You only have to take a stroll down ‘Silicon Docks’ to see the giant logos from Facebook, Twitter, Google, LinkedIn et al. It’s a vibrant market.
“The workforce is highly technology literate, and this is filtering into the education sector and school strategies,” says Hayward. “Schools are advocating implementation of the latest IFPDs to address the skills demand for a workforce in the technology sector and are capitalising on opportunities available for students with strong digital literacy.”
Retail AV
There has been a lot of reinvestment in the high street, too, particular in QSR and retail and betting shops. “Retail and betting shops alone represent more than 41,000 locations, so the opportunities for all levels of the AV industry are huge,” Walker says.
There has been a lot of reinvestment in the high street, too, particular in QSR and retail and betting shops. “Retail and betting shops alone represent more than 41,000 locations, so the opportunities for all levels of the AV industry are huge,” Walker says.
As in the UK as a whole, food and beverage chains are trying to outdo each other when it comes to the use of AV.
“We’ve seen many examples of existing premises with perfectly adequate signage being completely refurbed to house the latest tech,” Walker adds. “Business in Ireland feels a lot more personal than the UK. A far more hands-on approach with customers seems to bring the best results.”
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