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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                  Coronavirus Update

                                  May 15, 2022 - Mid-term Election Ad Spending Under Way
                                  • 7. The Democratic Senatorial Campaign Committee has reserved $33 million to be used this fall ahead of the mid-term elections. The initial reservation of funds is likely to be added to and modified as the election season progresses. The announcement is the first of several expected for the 2022 mid-term elections. The National Republican Senatorial Committee is expected to announce its campaign ad reservations in May. Spending by both groups will be a fraction of what will be spent by Political Action Committees (PACs). Politico says that The Mitch McConnell-aligned Senate Leadership Fund placed $141 million in ads and the Chuck Schumer-aligned Senate Majority PAC reserved spots totaling $106 million.
                                  • Graphic design services serving the hospitality and events sectors may be negatively impacted again by the coronavirus pandemic. New COVID-19 case rates increased in late April, with the seven-day rolling average increasing to roughly 90,000 on May 13, up from 85,630 on May 11, 58,000 on May 1 and 30,000 cases per day on April 8, according to a New York Times COVID-19 case tracker. Experts note that the American population has different vaccination rates, levels of previous exposure to the virus, and degrees of underlying health conditions, so the trajectory of new cases could vary. Analysts note that the data regarding new cases are getting less reliable as the public testing infrastructure continues to wind down and home test results are less likely to be reported to officials.
                                  • Total 2022 advertising spending across 16 media platforms serving local audiences will reach $173 billion in 2022, according to BIA Advisory Services. Over half (51%) will be spent in digital media, primarily Google and Facebook. Mobile ads on smartphones will get the largest portion at $36.7 billion. Over-the-top (OTT) advertising will reach $2 billion in spending targeting local viewers, making it one of the fastest growing local ad platforms. OTT ads, also known as streaming TV ads, are the advertisements delivered to viewers within video content. Local TV is expected get about $4 billion in political spending.
                                  • Commercial bankruptcy filings decreased 4% month over month in April after increasing 26% month over month in March, according to Epiq Bankruptcy Solutions. Commercial bankruptcies decreased 5.4% month over month in February, and 11.2% month over month in January. Commercial bankruptcies were down 16% year over year in April. Small business bankruptcy filings known as subchapter V cases, a new type of filing that went into effect in February 2020 under the Small Business Reorganization Act, decreased 40% month over month in April after hitting record numbers in March.
                                  • Real disposable income, an indicator of demand for graphic design services by the advertising industry, decreased 0.4% month over month in March, according to the US Bureau of Economic Analysis. It was the sixth straight month that real disposable income decreased. Consumer spending increased 1.1% month over month in March.
                                  • Employment at graphic design services increased 2.7% year over year in March but was down 6.5% compared to the pre-pandemic month of March 2019, according to the US Bureau of Labor Statistics.
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