Sign Manufacturers
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 5,700 sign manufacturers in the US produce signs and displays (excluding paper and paperboard-based sign products) for commercial, institutional, and government use. Major revenue categories include non-electric signs and displays, electric signs and displays, and trade show exhibits. Other products and services include digital printing, commercial screen printing, and commercial lithographic printing. Firms may also generate revenue from installation, maintenance, and repair services.
Competition From Alternative Forms Of Advertising
Signs compete with alternative forms of advertising, such as television, print, direct mail, and digital media.
More Digital Displays
Improved image quality, the ability to offer dynamic content, and better durability is motivating customers to migrate to digital signage.
Industry size & Structure
The average sign manufacturer operates out of a single location, employs fewer than 10 workers, and generates $2.2 million in annual revenue.
- The sign manufacturing industry consists of about 5,700 firms that employ 75,300 workers and generate about $12.3 billion annually.
- The industry is fragmented; the top 50 companies account for 33% of industry revenue.
- The industry includes national firms, regional firms, franchises, and independent operators.
- Large companies include Daktronics, Young Electric Sign Company (YESCO), and Fastsigns.
- Large firms may have operations in foreign markets. Subcontracting to sign manufacturers outside of local markets allows small firms to serve remote customers.
Industry Forecast
Sign Manufacturers Industry Growth
Recent Developments
Oct 8, 2024 - Sign Manufacturer Price Hikes Outpace Wage Growth
- Producer prices charged by sign manufacturers increased 6.9% in July 2024 compared to a year earlier. Over the same period, wage growth in the industry has been less than half of pricing growth. More robust pricing power amid softer wage growth may suggest sign manufacturers’ margin pressure from rising wages is easing. In July 2023, industry employment was mostly flat compared to a year earlier.
- US net media owner advertising revenues (including cyclical spending such as the Olympics and the presidential election) rose 11% in the second quarter of 2024, according to a September forecast by advertising firm MAGNA. The Q2 2024 growth was led by pure-play digital (search, retail media, social, short-form video), which grew 15.9%. Traditional media spending (TV, audio, publishing, out-of-home, and cinema) rose 0.4% in Q2 2024. MAGNA also upwardly revised its full-year 2024 outlook (including cyclical events) from 10.7% to 11.4% growth. Out-of-home ad spending (OOH - which includes billboards and other signage) was up 2.9% in Q2 2024 from Q2 2023. The ad firm expects full-year OOH ad spending to rise 5.3% in 2024 over 2023, then rise another 5.2% in 2025.
- Sign manufacturing industry sales growth is expected to slow after three years of robust gains. The industry’s year-over-year sales growth rose 5.58% in 2021, 7.1% in 2022, and 5.7% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to slow to 0.7% in 2024, then see average annual growth of about 1.8% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- A recent survey by recruiting firm Robert Half highlights the hiring and career trends of creative professionals. About 55% of creative managers say they are currently hiring for new roles (including graphic designers and user experience designers), and 43% have openings in existing roles. However, 92% of creative managers report having trouble hiring skilled talent. Nearly two-thirds of survey respondents said that including salary ranges in job listings helps attract the most qualified talent, and 60% of those leaders said salary transparency helps give their firms a recruiting edge over their competitors.
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