Sign Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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 12-13 workers, and generates $2.3 million in annual revenue.

    • The sign manufacturing industry consists of about 5,700 firms that employ 72,900 workers and generate about $13 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

                                  Coronavirus Update

                                  Apr 21, 2022 - Sign Prices Rise
                                  • Rising prices for primary inputs, including metals, wood, plastics, and electrical components, are pushing sign prices higher. Sign manufacturers’ producer prices increased 11.5% in March 2022 compared to the same month a year earlier. Prices for electric signs and displays increased by 13.8%. Nonelectric sign and display prices were up 11.9%.
                                  • Retail openings are expected to outnumber planned retail closures in 2022, according to Coresight Research. About 1,910 openings are expected, compared with 742 planned closures over the course of the year. That would continue a trend from 2021 when major retailers announced 5,083 store openings compared to 5,079 store closures, and it is an improvement over 2019 when a record 9,300 stores closed.
                                  • Store openings may have exceeded store closures for the first time in five years in 2021, according to Coresight Research. Analysts cite low rents, the need to have customers evaluate products in person, and a desire to raise brand awareness as key causes of the change. Rebecca Fitts, director of real estate at Leap and former real estate director at Warby Parker, said that demand among direct-to-consumer businesses to open brick-and-mortar locations has never been more robust.
                                  • Electric sign manufacturers may experience some difficulties in sourcing key components from suppliers in China. As of April 11, 87 of China’s 100 largest cities were in some form of lockdown, according to economic research firm Gavekal Dragonomics, which has been tracking lockdowns during the pandemic. According to The New York Times, the restrictions were a drag on China’s industrial output in March, and April’s results are expected to be worse.
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