Graphic Design Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 15,600 graphic design services in the US plan, design, and manage the production of visual communications. Major client industries include advertising, publishing, retail, fashion/apparel, consumer goods, pharmaceuticals, cosmetics, sports, and entertainment. Graphic design firms may specialize in particular area, such as packaging or website design.

Sensitivity To Performance Of Client Industries

Demand for graphic design services is dependent on the financial health of client industries, which can be cyclical and vulnerable to economic downturns.

Demand For Digital Grows

As clients shift marketing dollars from traditional advertising vehicles to digital programs, graphic design firms have adapted services accordingly.

Industry size & Structure

The average graphic design service provider operates out of a single location, employs fewer than five workers, and generates about $597,000 annually.

    • The graphic design services industry consists of about 15,600 firms that employ about 55,900 workers and generate $9.3 billion annually.
    • The graphic design services industry is extremely fragmented; the top 50 companies account for just under 17% of industry revenue.
    • Large firms include Schawk Incorporated and Southern Graphics. Large firms that also offer graphic printing include Quad Graphics and Matthews International.
    • The majority of graphic design firms are small, independent companies that operate within a limited geographical market.
                                  Industry Forecast
                                  Graphic Design Services Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Dec 5, 2022 - New Business Applications Rebound
                                  • New business formations have recovered after a small lull earlier in 2022 to the elevated levels seen during the fall of 2021, and their owners are hiring quickly, according to John Haltiwanger, a University of Maryland economist. The US Census Bureau reported almost 433,000 new business applications in October, up from 313,000 in December 2019, before the Covid pandemic began, and 413,000 as recently as June. "Even with the volatility and the surge [earlier in the Covid pandemic] we're still 30 percent higher in 2022 than in 2019," Haltiwanger said. "People are being optimistic about the future and that's a good sign."
                                  • About 86% of marketers surveyed by NAPCO Research have increased or maintained direct mail use in the last twelve months. The direct mail channel has been on a steady rebound since the initial plunge of 2020. Over half of respondents to NAPCO Research said that they entered the mail channel to escape the rising customer acquisition costs of digital channels and increasing privacy regulation. Reaching audiences without violating increased data security regulations is a top concern for marketers.
                                  • Holiday sales and marketing are expanding well beyond Black Friday and Christmas, according to Forbes Agency Council. Holiday sales and promotions now start in early fall and run through the New Year. Shopping events and the saving opportunities they bring will be more important than ever. Consumers are reducing spending and will be looking for events where they can save on their purchases due to the current global economic downturn and high inflation.
                                  • Magna, a unit of Interpublic Group of Companies' Mediabrands, cut in September its forecast for nonpolitical ad spending for the second half of this year and its total advertising spending growth forecast for 2023. Company analysts say that a weaker economic environment is likely to cut into consumer spending. Items like food, drinks, personal care, and household goods ‘are especially at risk as firms are forced to increase product prices and face the possibility of consumers trading down in favor of cheaper brands.’ Advertising expenditures will decrease as a result. Ad spending growth for all of 2022 will come in at 9.8%, Magna said, less than the 11.1% forecast in June. The growth forecast for 2023 was cut to 4.8% from the June prediction of 5.8% growth.
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