The Audio Visual rental and hire industry had been experiencing solid rates of growth leading in to the Global Financial Crisis (GFC).

According to various reports many had been planning to increase staff and inventory prior to the GFC .

However when the GFC hit, there was some discussion and predictions of doom and gloom.

But the suddenness of the crisis was thought to have left many exposed!

Firstly there was concern that the predicted collapse of the USA $175 Bn Corporate offsite meeting market would impact the AV rental and hire companies.   This figure includes all goods and services supplied to the market, of which AV rental is but one.

Discussions with our clients has indicated that whilst Corporate Off site meetings may have decreased.  Demand appeared to shift to providing AV equipment for on- client site meetings.

Cash flow Impacts

Whilst many indicated that there had been a fall in demand, the biggest issue was cash-flow.  In particular clients extending the payment term period.

Cash flow is the life blood for many AV hire and rental businesses given that many have large inventory debt costs to be serviced.

Many did not comment on the role of the banks in providing increased credit lines.  However based on evidence from other sectors it is likely that the banks were not that forth-coming.

A common theme amongst clients was the focus on cost management.  Those were able to identify, analyze and remove non value adding costs appeared to do well.

Cost management analysis must cover the entire natural business process from lead generation through bookings, service delivery, inventory to managing the accounts.  This total analysis ability is critical, as without it companies can cut costs in one area, only to find that costs rise in another.

This may sound trite, but in an industry that has grew rapidly through the boom years, cost management was not in many cases of core management focus.

Downturn Passing

Now that the downturn is passing and the green shoots of recovery are appearing, those AV companies who survived will be well placed.

Whilst it is expected the cash flow may remain an issue for the foreseeable future, revenue is expected to increase.

Positioning for Growth

The focus now moves to positioning for growth, picking up new markets and clients.

Given the lagging issue of cash flow, many may not have the marketing financial resources to take advantage of the emerging opportunities.

Look to Social Media Marketing

AV companies that find themselves in that position should seriously consider using Social Media Marketing.  Social Media marketing is growing rapidly, in particular by businesses of all sizes from Corporate to the Smallest.

Combining attraction tools like Twitter with content sources such as a blog can be incredibly effective.  Evidence from the USA shows that web site traffic can be increased as much as 55% using such tools.

About Us

HireEzy is the complete business management solution for hire and rental companies. Not only does it include digital marketing, web integration it also includes social media marketing tool integration. For more information email us sales@makinglifeezy.com.au