Edge Leaders Share 23 Considerations for 2023
Are you prepared for what might be the most defining year to date in our industry? These factors will help shape the months ahead. By Edge, formerly USAV Group
Now, while integrators are preparing for products to ship and bracing for what comes next in another year of uncertainty, now is an ideal time to look at important discussion points to keep front and center in our industry.
Aftermath of the Great Supply-Chain Break
One way or another, supply chain will continue to dominate conversations this year. Efforts to identify products and solutions outside of the norm has been ramping up, and those “other manufacturers” are seeing record sales because they have product available. There are costs to making changes, and cashflow remains strained, which means projects need to be run more efficiently. And there have already been changes to how we handle product warehousing. How many containers can you fit in your parking lot? “Just in time” is replaced with “just in case,” which ties up more cash, while the banks have reduced lending credit on inventory.
Managed Services Expand in Breadth and Depth
Speaking of banks, higher interest rates mean the cost of money is increasing. That puts pressure on the entire business model. Many integrators are finally beginning to see a more significant movement into managed services after all the CapEx versus OpEx discussions we have had over the years. The audio visual as-a-service conversation needs a fresh look, and there are plenty of options in the market today. The recent change to how Microsoft Teams handles Day Two support for Microsoft Teams Rooms is a prime example of how the industry is shifting. There is an opportunity in the lesser-known world of software as-a-service or (SaaS). The AV channel has long ignored licensing agreements; now, however, could be the time for a deeper dive. This type of business can create positive cashflow and alleviate some of the pressures elsewhere in the business model. And what about cybersecurity — that is, the need to protect our own companies and the work we perform? Yes, we need to be compliant, but does cyber become part of the SaaS offering, too?
Continued Evolution of Meeting Experiences
All of this will be driven by our clients, who continue to figure out their collective back-to-office policies. But, as we have learned, no one-size-fits-all solution exists. That means we must be flexible in creating solutions that fit into the new hybrid workflow. Pre-pandemic, we finished building out open space plans and huddle rooms; now, that is all changing again. From an AV perspective, we must determine what it means to design for meeting equity for all attendees. Will this involve the new 21:9 aspect ratio that seems to be all the rage today? Or, conversely, will that go the way of 16:10? Most certainly, our end users’ entire unified communication and collaboration (UC&C) team will discuss the overall direction. Integrators should be in these conversations.
Balancing Labor Needs
Going back to the supply chain, we see the light at the end of this tunnel, however, faint. And as we get closer to that light, we will see other problems brought on by the resolution. As product becomes available and the backlogs start unwinding quickly, labor resources will need to be solidified. One possible solution lies in the world of subcontracting. The outsourcing conversation will be of interest to many companies and in more disciplines. Managing that process is quite different from the typical integrator model, so we can expect to see this process evolve. Integrators have been reluctant to hire additional staff, perhaps because of the looming recession (or the one we are already in). And, in some cases, layoffs have started already.
New Dynamics and Crossover
Amid cashflow challenges, will some go out of business or find alternatives for their exit strategy? Which leads us to M&A activity, which continues to disrupt the channel. The landscape of the AV space is changing, and so are other technology spaces that have become more intertwined in our world. Integrators, distributors, manufacturers, IT, telephony, security, residential and more are all starting to blend, creating a new dynamic that needs attention in the coming years. As is evident from how trade shows continue to evolve, there is more crossover than ever before. Will the large shows prevail? Do regional ones pick up even more momentum? Or do we see some combined efforts moving forward? The focus is now back to return on investment — less on networking and not so much on just showing up for the party. Travel has certainly changed. Will that get any better, or are we stuck worrying about flight delays and cancellations? And how do we fit all these shows in? How many is too many?
As we can see, there is no shortage of topics for 2023. Each topic has multiple layers and involves many different people within an organization. Communication with your team is paramount. And having Unparalleled Partnerships to rely on can help you navigate the challenges that await in what could be the most defining year to date in our industry. So, bring on 2023, and let’s make it another great year in technology.
Edge, formerly USAV Group, bonds low voltage systems integrators together as an elite industry team. With integrator members throughout the world, partnerships with top AV manufacturers and service providers, and alignment with leading industry associations, the advantage Edge provides is unparalleled by any other industry association.