ISA Sign Industry Quarterly Economic Report Shows All Four Sectors Poised for Growth in 2017
Alexandria, VA – September 29, 2016 — After a disappointing start to 2016, the broader economy and the sign, graphics and visual communications industry both show signs of growth into 2017, according to the ISA Sign Industry Quarterly Economic Report for the third quarter of 2016.
The ISA Sign Industry Quarterly Economic Report assesses four segments—printing, electric/digital signage, and architectural signage—and related economic factors. In general, it shows an accelerating U.S. economy; globally, the outlook is more subdued.
The Economic Report, which was prepared in September, is sponsored by NASSD and compiled by IHS and Vandiver Associates. It analyzes each segment of the market upstream and downstream to allow users to stay current with evolving business conditions.
Highlights from the report:
- For the broader U.S. economy, recent gains in employment and wage growth, coupled with rising household wealth due to booming real estate values, have led to strong consumer spending. It grew at a 3.4% annualized rate in Q3.
- All sign, graphics and visual communications markets remain above trend for 2017, with only supply side-electric/digital seeing a downgrade since last quarter. All segments are expected to show growth well above the historical trend. This above trend growth for all market segments should remain through 2018 as well.
- In supply side printing, outlook for 2016 has been downgraded a bit for suppliers to the static side of the industry, with expectations still above the historical trend. The outlook for 2017 remains unchanged and shows a bounce-back to the levels seen prior to the 2016 dip.
- In supply side electric/digital, total revenue from both hardware and services is expected to increase by 12.4% for the year.
- In the end market Electric/Digital, digital-out-of-home advertising revenue should surpass $1.1B in 2016. Digital’s share of US OOH advertising should top 17% in 2016 and will rise annually through 2020, reaching 22.4%.
- The end market for architectural signage should continue to see very favorable conditions through 2016. Growth should remain strong through 2018 despite a slowing of the index from the 2016 peak.
Key findings from the Q3 2016 ISA Sign Industry Quarterly Economic Report will be the topic of a free webinar October 13 from 2-3 p.m. Eastern Time. Economists will discuss the macroeconomic global economy, focusing on issues that could affect the sign industry supply chain, before delving into the specific microeconomic outlook shown in the report. Learn more at www.signs.org/webinars.
The report is free for members of ISA, ISA Affiliated Association and NASSD. Non-members may purchase it for $1,000 per forecast. This research can be accessed at www.signs.org/quarterlyreport.
