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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Dec 11, 2024 - Out-of-Home Advertising Remains Robust
                                  • US net media owner advertising revenues (including cyclical spending such as the Olympics and the presidential election) rose 12.4% in 2024 and are projected to slow to 4.9% growth in 2025, according to a December forecast by advertising firm MAGNA. Traditional media spending (TV, audio, publishing, out-of-home, and cinema) rose 5.6% in 2024 but is projected to decrease by 7.1% in 2025. Out-of-home ad spending (OOH - which includes billboards and other signage) was up 5.4% in 2024 and is forecast to rise 5.1% in 2025. In 2024, OOH outperformed many other traditional media categories as brands spent reaching sports fans attending events, including the Olympics. Digital-out-of-home (DOOH) is attracting programmatic ad budgets to OOH, which has also helped drive growth.
                                  • In December, UK-based Robots of London debuted a Digital Signage Robot that the firm is offering for hire or sale, according to AV Magazine. The Digital Signage Robot features a 27-inch portrait HD display that can play videos, images, and real-time updates. The robot also has a smaller 10.1-inch interactive display and AI chatbot integration for answering questions in real time. The Digital Signage Robot’s autonomous navigation makes it well-suited for use in retail and hospitality settings.
                                  • The rate of US business applications, a key demand indicator for sign manufacturers, increased in November 2024 compared to the prior month, according to the US Census Bureau. All US regions posted stronger applications, led by the West with a rise of 13.5%, followed by the South (+3.5%), the Midwest (+3.1%), and the Northeast (+1.3%). Of the 20 major industry sectors tracked by the Census Bureau, 18 posted growth in November, led by retail (+15.9%), management of companies (+7.5%), agriculture (+6.8%), transportation and warehousing (+6.2%), wholesale trade (+5.6%), and accommodation and food services (+5.4%). The only Industries that notched declines in February business applications were unclassified (down 7.5%) and mining (-0.2%).
                                  • Sign manufacturing industry sales growth is expected to slow after three years of robust gains. The industry’s year-over-year sales growth rose 5.54% in 2021, 7.1% in 2022, and 5% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to slow to 2.1% in 2024 before rising to 3.1% in 2025 then see average annual growth of about 2.4% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
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