As distressing as it is to hear daily reports of the credit crunch digging its fingers into the global economy, the pro audio industry is starting to feel the pinch, with companies cutting back, rearranging staff and an unfortunate few going into administration. 

JBL Professional, part of the former James B Lansing sound company, which recently celebrated its 60th anniversary, has long been established as a household name for installation, cinema, live and recording-studio audio. JBL’s VerTec line array system is one of the leading line arrays in the live sound market, so much so that it was recently used as the sound system for one of the world’s biggest music festivals: Rock in Rio.
 
David Scheirman, vice president for Tour Sound, JBL Professional (pictured below), says: “One key to JBL’s continued steady results is the strength of the brand. When there is an economic downturn businesses will rely on what they know and what they are comfortable with, as opposed to a freewheeling climate where people are willing to take risks on lesser known products and unfamiliar new brands.”

As part of Harman International, JBL has access to the resources of more than 10,000 employees in over 60 offices and factory complexes around the world. The Harman network of distributors and dealers has been established internationally in over 150 countries. Scheirman furthers: “Harman has a globally interlinked development and manufacturing network. JBL Pro might use magnet assemblies sourced in countries that are high volume purchases for our automotive electronics division and the same raw mineral resource that is used for loudspeakers in a Mercedes or Ferrari or BMW automobile, with sub-assemblies being put together in Hungary or Germany as just one example. Some of those same things might also be used on the assembly line of our loudspeaker manufacturing plant in the Los Angeles area. Whether it is an electronic sub-assembly or raw components for the transducer family, we have a global sourcing and manufacturing strategy within Harman.”

The company’s international outreach is also evidenced by its recent appearance in Vietnam at the 57th Miss Universe Pageant. “Vietnam has a growing economy, and a VerTec system was specified and imported there just to do the 2008 Miss American pageant by a multimedia group that wasn’t even on the radar as a potential customer just a few short years ago,” Scheirman explains.

“That is just one small example. There is a counter balancing aspect if the more mature developed economies are slowing. There are other places in the world, certainly in the expanding touring and installation markets, where we are not seeing signs of things slowing down – rather, we are seeing double-digit growth.”

As Scheirman notes: “There is a very clear growth phase for pro production entertainment technology in areas like the Middle East, India, South America and Eastern Europe, because one of the previous business models for large scale concert production has changed. For example, in decades past, major shows like Pink Floyd or the Rolling Stones used to carry their entire sound, lighting and stage system around the world and schedule concerts based on when the gear would arrive. Now there are much more refined logistical agendas that involve making use of local resources when and where possible, which means that, be it South Africa or Morocco or Chile, you are seeing promoter-driven show activity, which creates a local demand for the acquisition of line array speaker systems, digital mixers, wireless mics and portable stage systems that are world class. So top-tier brands are going to benefit from that trend.”

While JBL has a giant head start on new smaller manufacturers, it has a sustainable business model in place that other companies in the business can learn from, and new prospects in growing regions provide new opportunities for the entire industry.
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