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
Aug 6, 2024 - Solid Out-of-Home Ad Spending Growth
- US net media owner advertising spending is expected to rise by 10.7% to $374 billion, according to a June forecast by advertising firm MAGNA. Ad sales rose 11.6% in Q1 2024 compared to the same period in 2023. However, the Q1 2024 growth was due to pure-play digital (search, social, short-form video), which grew 17.3%. Traditional media spending (TV, audio, publishing, Out-of-Home, and cinema) rose 0.3%. (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. Out-of-home (OOH) ad spending, which includes signage, is forecast to rise 5.9% in 2024 over 2023.
- 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.
- The sign manufacturing industry could see demand falter if economic conditions reduce small business marketing budgets and/or capital spending. In June, the US rent delinquency rate among small, independent businesses rose to 46%, marking the third consecutive month when the delinquency rate remained at its highest level in three years, according to a July report by Alignable, a social media outlet for small business owners. Trouble paying rent is a symptom of several underlying challenges small businesses face, including weaker revenue, high interest rates, and the lingering effects of cumulative inflation. About 73% of survey respondents say their revenue is below pre-COVID levels, and 55% report being harmed by higher interest rates. More than a third (35%) of small businesses surveyed said inflation was their top concern. The industries that struggled the most to pay rent in June included automotive (with 57% of those surveyed saying they couldn’t make rent), science and technology (52%), manufacturing (46%), real estate (44%), retail (44%), and beauty (40%).
- 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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