The sign, graphics, and visual communications industry is enjoying solid growth thanks to a strong global economy and the availability of new products, according to the ISA Sign Industry Quarterly Economic Report. After a particularly strong outlook in the first quarter, signs point to that streak extending into 2019.
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.The Sign Industry Economic Report, prepared in June, is sponsored by the National Association of Sign Supply Distributors (NASSD).
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.
Some highlights:
* Analysts anticipate economic growth at about 3 percent for the second half of 2018. In 2019 and 2020, they expect growth at 2.8 percent and 1.8 percent, respectively.
* The U.S. economy is strong, but analysts expect a total of four rate hikes in 2018, with interest rates reaching 3.5 percent in 2020.
* Several issues could impact growth projections, including what analysts called an “increasingly belligerent trade stance of the United States,” which could trigger a trade war. Other issues: higher oil prices will erode growth; rising political risks in Europe (especially in Italy and Spain) could hurt growth prospects; and financial pressure remains on key emerging markets. Still, analysts say, “None of these looks like a recession trigger—yet.”
* More specifically for the industry, “good times” for manufacturing remain.
* IHS Markit believes there will be an even greater shift in connected and integrated environments for digital signage displays with other technologies, such as NFC, motion sensor touch solutions, along with voice and facial recognition technology—helping to drive the development for interactive whiteboards (IWBs) in new applications such as retail and wayfinding.
Those interested in learning more about the ISA Sign Industry Quarterly Economic Report and the outlook for the rest of 2018 and 2019 can participate in a free webinar hosted by ISA at 2 p.m. ET July 25. Register at www.signs.org/webinars. The webinar is free for ISA, ISA Affiliated Association or NASSD members or $100 for non-members.
The report 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 www.signs.org/quarterlyreport.
