Cap-Ex Will Be Taut in '09
by Randy J. Stine, 12.30.2008
Corporate radio engineering managers acknowledge that this fall's capital budgeting process for 2009 was especially tough as revenue and cash flow dip and as credit for projects and purchases has become more difficult to obtain.
Faced with another year of economic uncertainty and now, officially, a full-blown recession, broadcasters are being forced to prioritize capital spending on equipment and facility buildouts, industry insiders say.
Even broadcast equipment manufacturers and suppliers — who as a group tend to use optimistic language whenever describing the state of their business — believe spending by stations is likely to be very conservative in 2009. The impact will be felt in HD Radio deployments and large RF projects, some experts believe.