As mentioned last week, we continue to analyze the latest results from our quarterly study of end-user demand for AV, called MOAR. The full results are now available to subscribers via our online dashboard, but a notable trend has emerged that is worthy of sharing. When one looks at the combined metrics of improvement plans, budgetary changes, and allocations of both capital and operational budgets to AV, it becomes clear that demand for AV peaked in the first quarter this year. Since then, while demand remains strong relative to early 2021, the pace of growth has declined, with a further slight dip in the coming 4th quarter.
Does this mean we expect pro AV to be down year over year? The answer is a decisive no, given elevated levels in the underlying metrics as we compare back to last year's results. Instead, the dip could perhaps be indicative of the impact of rising interest rates across the globe, which are meant to cool off demand a bit so that inflation can ease. For pro AV this also offers an opportunity for the market to catch up to project backlogs resulting from lingering supply and staffing challenges. Certainly too much slowing would create reasons for concern over long-term health, but this does not appear to be the case so far. As always, we'll continue to watch and report as new results come in so stay tuned. Our monthly AV Business Index remains a great place to get a more frequent pulse check on the state of the market.