AVIXA: Uncertainty Over Tariffs Could Impact AV Systems' Costs Sports' reliance on large-scale videoboards may be vulnerable to price increases By Dan Daley, Audio Editor
Thursday, October 24, 2019 - 12:27 pm
Print This Story
Story Highlights
The NBA may have won over China (recent tweets notwithstanding), and the world's most populous country is still very much on the NFL's radar, but the massive Chinese-manufactured video screens and their LED elements that dominate stadiums and arenas are in the tariff crosshairs, along with other AV systems, thanks to the ongoing trade war between the U.S. and China.
When the trade war intensified in the first few days of August, it affected the pro-AV industry in a multitude of ways, according to Sean Wargo, senior director, market intelligence, AVIXA, the leading trade organization for the audio/video industry globally. Primarily, he explains, it introduces uncertainty and makes businesses less likely to invest and expand. Rising import and export costs also disrupt supply chains and make products more expensive.
AVIXA's Sean Wargo: Pro-AV growth in the Americas outpaces GDP but is slowing a bit as we work through the [trade-war] challenges.
Instead of paying for new AV systems and investing to grow revenue, businesses are paying tariffs and investing to reroute their supply chains around the new tariffs, he says. It's a dynamic that will apply to sports venues as well as to other commercial-AV verticals.
The escalation in August began with President Trump's introduction of tariffs on another $300 billion of imports, making nearly all Chinese imports subject to some form of trade tax, and worsened with retaliation by China. That country's response centered on allowing its currency to devalue to an 11-year low against the U.S. dollar, a move that functions like a tariff by making U.S. exports to China more expensive while making Chinese exports to the U.S. cheaper.
In AVIXA's Industry Outlook and Trends Analysis (IOTA), we factored in some slowdown in the Americas forecast as a result of economic challenges, some of which stem from trade conflicts, says Wargo. He cites data indicating that U.S. GDP will grow 2.1% this year, down from 2.9% in 2018, and Asia-Pacific GDP growth will slow to 4.5% in the same period. Specifically, pro-AV revenues in the Americas increased by 6.1% in 2018, with a [predicted] drop to 5.4% in 2019 and 4.5% in 2020. Thus, the pro-AV growth in the Americas outpaces GDP but is slowing a bit as we work through the challenges.
Recent Price Declines Could Be Reversed
Integrators that design and install AV systems in sports venues have voiced concern about rising costs for video and audio components, which could reverse the steady price declines of the past several years. Those price drops have played a major role in the explosion of larger video screens and sound systems in arenas and stadiums over the past decade.
According to Duane Yoslov, SVP, leading sports and live events, Diversified, whose portfolio includes Miami's Hard Rock Stadium and Atlanta's Mercedes-Benz Stadium, the potential for tariffs to increase LED costs by as much as 20% is real, but exactly where the impact of that will land on the capital-cost spectrum of a new sports venue is uncertain. He suggests, however, that future contracts for LED scoreboard will need to include provisions limiting client liability for price spikes due to trade issues, such as tariffs.
From a contractor's point of view, he explains, you can quote a price for an LED scoreboard but with an exclusion that that price is exempt from any future tariffs. But that does increase your risk: a tariff can quickly negate the profit margin on an LED screen.
However, he adds, LED displays have become fundamental to fan-engagement strategies that venues and teams use to get customers off the couch and into the stands. Even with a higher price tag, those screens are still just a tiny fraction of the overall cost of a stadium or an arena.
Possibly a Positive Effect
The rising costs could spur more manufacture of AV systems in the U.S. and North America.
If anything, the tariffs are an advantage for us because it makes the Chinese products more expensive, Todd Whitaker, senior VP, sales and marketing, Inneos, which develops and manufactures optical video products, told Commercial Integrator magazine this year.
Some optimists in the AV industry point out that a growing percentage of audio, video, and lighting products are being sourced outside of China but still in low-cost manufacturing locations: in particular, South Korea, Taiwan, and the Philippines. LED components used in scoreboards and large-scale video screens in stadiums and arenas have especially benefited from this dynamic.
And those countries have become more assertive in developing products used by sports venues; for instance, in 2015, South Korean electronics powerhouse Samsung acquired LED-screen manufacturer Prismview, which has recently placed scoreboards in such venues as Sacramento's Chase Center and Salt Lake City's Vivint Smart Home Arena. Furthermore, U.S.-based Daktronics, which is widely considered the global market-share leader in large-scale video displays and whose scoreboards are in a majority of NFL, MLB, and NHL venues and a third of NBA arenas, manufactures its screens at its South Dakota headquarters.
But others in the professional-AV community see more-direct effects from the tariffs. Brooke Walters, corporate marketing manager, Ford Audio-Video, whose sports-venue portfolio includes Bank of America Stadium in Charlotte, NC, and Arizona State University's Wells Fargo Arena in Tempe, expects tariff-induced price increases to spur significant changes in what has been a steadily growing sector, that he.
As an industry, he wr
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
06/05/2026
Gravity Media Chief RF Communications Engineer Glenn Willems uses Wisycom RF over Fiber and wireless solutions across major cycling events and international mar...
06/05/2026
A Sennheiser Spectera module is now available in Bitfocus Companion and Buttons, enabling direct integration of Spectera with the two software platforms. The mo...
06/05/2026
Ted Turner, the visionary media entrepreneur whose appetite for disruption helpe...
06/05/2026
Peacock is going all-in on the beautiful game - streaming all 104 FIFA World Cup...
06/05/2026
New pricing tiers for vocal/dialogue restoration tool
NoiseWorks Audio's AI-powered vocal and dialogue processing plug-in is now available in three diff...
06/05/2026
Popular mixing & routing software overhauled
Following a recent public beta test, RME have launched the final release version of the powerful mixing and rou...
06/05/2026
New SOS Video Feature
Focusrites ISA C8X is a milestone product that brings together the companys analogue heritage and their expertise in digital audio. Yo...
06/05/2026
Polands Miecznik-class frigates are part of the largest contract in Polish shipbuilding history. (Image Credit: PGZ Stocznia Wojenna)...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Riedel Communications today announced the expansion of its leadership structure as part of a strategic initiative to strengthen both its operational management ...
06/05/2026
For nearly three decades, Veteran Production Sound Mixer and Five-time Emmy Award Winner Dirk Sciarrotta has helped define the sonic identity of the long-runnin...
06/05/2026
ZEISS CinCraft LensCore: Cinema Lens Looks for Compositing
Brie Clayton May 6, 2026
0 Comments
ZEISS announces the launch of CinCraft LensCore, a nove...
06/05/2026
Wisycom Solves Extreme RF Challenges Across Miles of Live Action for Gravity Med...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Narrative Entertainment has partnered with Encompass to deliver high-quality subtitling of its Great! network content using the Altitude Intelligence AI assiste...
06/05/2026
SipRadius, widely recognized for making content processing and connectivity secure and seamless, is proud to launch a dramatic new approach to AI content creati...
06/05/2026
When the broadband and media industry gathers at ANGA COM in Cologne from May 19 to 21, Big Blue Marble will be at the forefront. The international broadcast an...
06/05/2026
Cinegy GmbH, a leading developer of software-defined television technology, is proud to exhibit at MPTS for the first time. Visitors to the stand will discover ...
06/05/2026
Val Jeanty Receives 2026 Doris Duke Artist Award Jeanty, a composer, percussionist, and turntablist, is the fourth Berklee recipient of the prestigious award ...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
When live cycling races and international marathons stretch for miles across cities and countryside, there is no margin for RF failure in live broadcast. As Chi...
06/05/2026
Oberkochen/Germany, May 5, 2026
ZEISS announces the launch of CinCraft LensCore, a novel solution for creating physically based cinematic lens looks for visual...
06/05/2026
06 May 2026
VEON's Kyivstar Authorized to Resell Starlink for Businesses & ...
06/05/2026
UKTV has secured the exclusive rights to the early back catalogue of iconic Australian drama series Neighbours, following a landmark content deal with Fremantle...
06/05/2026
Wednesday 6 May 2026
Sky commissions feature documentary to mark 10th anniversa...
06/05/2026
Wednesday 6 May 2026
Sky and Formula 1 agree long-term partnership across UK, Ireland and Italy
Sky in the UK & Ireland to remain the home of Formula 1 until ...
06/05/2026
Sky Zero Footprint Fund-backed TV campaign launches nationwide, supported by new...
06/05/2026
Wuppertal May 6, 2026
Riedel Expands Leadership Structure, Appoints Marc Engro...
06/05/2026
SAN JOSE, Calif. - May 6, 2026 - Harmonic (NASDAQ: HLIT) today announced its latest broadband innovations for ANGA COM 2026, highlighting its vision for a new e...
06/05/2026
Statement from Rupert Murdoch, Chairman Emeritus, Fox Corporation on Ted Turner&...
06/05/2026
Friday 8 May on RT One and RT Player
Meet the NSPCA team caring for and protecting animals in need in this six-part series
Fly on the wall, six-part series...
06/05/2026
The race to build the world's most powerful AI factories demands networking ...
06/05/2026
How changes to proteins can alter drug interactions for new precision therapies Scripps Research team maps how chemical modifications to proteins affect drug bi...
05/05/2026
Experts from the world of academia, tech, business, politics and media convened for a Thomson Talks at the Cambridge Disinformation Summit in April. It's th...
05/05/2026
Three phones were hardwired for power and transmission to the truck; camera feat...
05/05/2026
The creative studio behind campaigns for the NBA, Fanatics Sportsbook & Casino, ...
05/05/2026
Nielsen has announced results from a co-viewing pilot program covering February&...
05/05/2026
viztrick AiDi, an on-device AI solution developed by Nippon TV, delivered global...
05/05/2026
ARRI has announced Omnibar, a battery-powered, IP65-rated multi-color LED linear...
05/05/2026
Imagine Communications has announced that France T l visions is the first broadc...
05/05/2026
The Women's National Basketball Association (WNBA) and Bell Media today announced a multiyear agreement to broadcast and stream WNBA games in Canada beginni...
AVIXA: Uncertainty Over Tariffs Could Impact AV Systems' Costs Sports' reliance on large-scale videoboards may be vulnerable to price increases By Dan Daley, Audio Editor 
