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 15,300 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 $719,000 annually.

    • The graphic design services industry consists of about 15,300 firms that employ about 59,700 workers and generate $11 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 SGS & Co. and Warschawski. 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

                                  Jan 9, 2024 - New Survey Highlights Industry Employment Trends
                                  • A new survey by recruiting firm Robert Half highlights the hiring and career trends creative professionals can expect to see in 2024. Nearly two-thirds of creative managers say they are currently hiring for new roles, and more than one-third have openings in existing roles. However, 94% of creative managers report having trouble hiring skilled talent. The skills most sought by marketing and creative managers include marketing automation, digital marketing strategy, and marketing research and analytics. The survey also showed that 65% of professionals would expect higher pay to work in an office full-time, and 59% of creative managers said they’d lost out on qualified candidates because remote and hybrid work was not offered.
                                  • US net media owner advertising revenues rose in the third quarter of 2023, marking two consecutive quarters of growth, according to a December forecast by advertising firm MAGNA. Ad sales rose 5.2% in Q3 compared to the same period in 2022. However, the Q3 2023 growth was due to pure-play digital (search, social, short-form video), which grew 12%. Traditional media spending (TV, audio, publishing, OOH, and cinema) declined by 3.6%. MAGNA also upwardly revised its full-year 2023 outlook from 3.4% to 3.6% growth. The ad firm also updated its 2024 outlook to 8.4% growth from an earlier forecast of 8%. Ad spending growth in 2024 will be driven by improving economic conditions, lower inflation, and the return of cyclical events, including elections and international sporting events.
                                  • Shipments by printers, a demand indicator for graphic design services, fell 0.2% in November compared to the prior month. On a year-over-year basis, printing shipments in November decreased 3.4%.
                                  • Open AI, the firm behind generative artificial intelligence (AI) tool ChatGPT, has debuted a new plug-in for Canva, the popular graphic design tool. The Canva plug-in is available to users subscribed to the premium ChatGPT Plus version that leverages GPT-4, the latest iteration of the AI platform. Once the Canva plug-in is installed, users can input the type of graphic they want to create in ChatGPT and it will generate an array of design options. Users then select the one they want to use and it opens in Canva.
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