Sign Industry Poised to Grow as Economy Continues to Improve
While some segments of the graphic communications industry have been struggling with layoffs, plant closures and consolidation, the sign and visual communications industry continues to reap the rewards of an improving economy.
Earlier this week, the International Sign Association (ISA) released the ISA Sign Industry Quarterly Economic Report for the second quarter of 2017. This report forecasts assesses four segments: two supplier markets, printing and electrical/digital signage, and two end markets, electric/digital signage and architectural signage. It also forecasts commodities, which was a new addition for this report. The Economic Report, prepared in June, is sponsored by the National Association of Sign Supply Distributors (NASSD).
According to the report, all sign, graphic, and visual communications industry is trending upward, with global growth in 2017 tracking to be the strongest since 2011. The supply side is showing a strong positive outlook for 2017 and 2018, with large improvements over last quarter’s mark, “in large part due to the bump in business investment at the beginning of 2017.” Business fixed investment increased at an annual 11.4% rate in the first quarter, the strongest gain in five years. While the report forecasts a drop in construction spending during the second quarter, this will quickly rebound in the second half second half and should post sizable gains early next year as spending from additional infrastructure kicks in.
Other highlights from the report include:
- For suppliers in the printing industry, the outlook is strongly positive over the course of the forecast following a down year in 2016.
- Expectations improved quite a bit for suppliers to the electronic and digital sectors of the market, with big upticks in both 2017 and 2018 after a relatively difficult year in 2016.
- The outlook for end market electric and digital signs remains strong through 2018. While growth is forecast to slow in 2019 it will remain well above the historical trend.
- The end market for architectural signage will continue to capitalize on favorable conditions through at least the end of 2018.
The report, compiled by IHS and Vandiver Associates, analyzes each segment of the market upstream and downstream to allow users to stay current with evolving business conditions.
Interested in learning more about the ISA Sign Industry Quarterly Economic Report, how 2016 ended and the outlook for 2017-2018? ISA and IHS are hosting a free webinar at 2 p.m. ET July 19. Register at www.signs.org/webinars.
The report is free for ISA, ISA Affiliated Association and NASSD members. Non-members may purchase it for $1,000 per forecast. This research can be accessed at www.signs.org/quarterlyreport.