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 5,600 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 5,600 firms that employ 76,300 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
Apr 4, 2024 - Industry Growth Slows
- 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.
- US net media owner advertising revenues rose in the fourth quarter of 2023, marking the most robust quarterly growth in nearly two years, according to a March forecast by advertising firm MAGNA. Non-cyclical ad sales rose by 9.1% in Q4 compared to the same period in 2022. MAGNA updated its 2024 ad spending outlook to 9.2% growth from an earlier forecast of 8.4%. Out-of-home (OOH) ad spending, which includes signage, is forecast to rise 5% in 2024 over 2023. 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.
- Sign manufacturers could see a downturn if economic conditions reduce small business marketing budgets and/or capital spending. In February, the US rent delinquency rate among small, independent businesses rose to 40% compared to 37% in January, according to a March report by Alignable, a social media outlet for small business owners. More than half of survey respondents (55%) said they were struggling with rent increases; of those, 16% said rent was up by 20% or more compared to six months earlier. Small businesses rated inflation as their top concern, as costs for supplies and labor were higher compared to six months earlier. The industries that struggled the most to pay rent included restaurants (with 43% of those surveyed saying they couldn’t make February rent), science and technology (42%), travel and lodging (41%), musicians and artists (40%), beauty (38%), gyms (38%), and real estate (38%).
- In February, the National Federation of Independent Businesses’ (NFIB) Small Business Optimism Index fell 0.5 points to 89.4, marking the 26th consecutive month of being below the 50-year average of 98. Nearly a quarter of small businesses (23%) cited inflation as their most significant problem. The percentage of small businesses reporting labor quality as their top business challenge fell five points to 16%, marking the lowest reading for the metric since April 2020. About 54% of those surveyed reported capital outlays in the last six months, down five percentage points from the previous month. NFIB Chief Economist Bill Dunkelberg said, “While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates. The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.”
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