U.S. consumer spending is up. Global economic growth is stabilizing. Material prices are flattening. Some segments of the sign, graphics and visual communications industry are rosier than in the previous quarter. The ISA Sign Industry Quarterly Economic Report shows primarily an uptick in all segments compared to the third quarter report.
The report covers the last quarter of 2019 and was prepared in December. It is sponsored by the National Association of Sign Supply Distributors (NASSD). The report assesses four segments of the industry: two supplier markets (printing and electrical/digital signage) and two end markets (electric/digital signage and architectural signage). It also forecasts commodities. It is compiled by IHS and Vandiver Associates and analyzes each segment of the market upstream and downstream to allow users to stay current with evolving business conditions.
Some highlights:
Steel prices have bottomed out and 2020 increases will be mild. Supply will remain ample, although surplus conditions are moving toward balance.
On the supply side of printing, the anticipation is for a shorter period of below-average performance than initially predicted. The 2021 outlook has improved slightly.
Supply side of electrical/digital also has improved throughout the forecast horizon, which stretches into 2022.
The end market for electrical/digital signs is up slightly for 2020 and 2021 as retail continues to evolve and push adoption of digital signs. The report suggests interactivity and collaboration will be primary for retail brands in 2020, with advancements in data collection driving more demand for digital signage.
The end market for architectural signs will be pulled down by decreases in retail construction and slight dips in office construction. But this is expected to level off in 2020 and 2021.
Those interested in learning more about the ISA Sign Industry Quarterly Economic Report, including the outlook for the rest of the year, can participate in a free webinar hosted by ISA at 2 p.m. ET/11 a.m. PT Wednesday, January 22. Register at signs.org/webinars. The webinar is free for ISA, ISA Affiliated Association and NASSD members, or $100 for non-members.
The report also is free for ISA, ISA Affiliated Association and NASSD members. Non-members may purchase it for $1,000 per quarterly forecast. This research can be accessed at signs.org/quarterlyreport.