Billboard and Sign Manufacturing in the US Industry Market Research Report Now Updated by IBISWorld

Share Article

After six years of steady growth, the lights went out on the Billboard and Sign Manufacturing industry in 2008 and 2009. Billboard and outdoor display advertisers curtailed spending on the industry's services as total advertising expenditures dried up amid falling corporate profit and shrinking advertising budgets. While the recession was painful for billboard and sign manufacturers, sustained economic recovery will boost industry performance in the near term. Corporate profit will grow as the economy continues to improve, ultimately leading businesses to increase their advertising budgets.

IBISWorld Market Research

IBISWorld Market Research

Demand for digital displays will aid growth, after weak spending hurt demand

After six years of steady growth, the lights went out on the Billboard and Sign Manufacturing industry in 2008 and 2009. According to IBISWorld industry analyst Kevin Culbert, “billboard and outdoor display advertisers curtailed spending on the industry's services as total advertising expenditures dried up amid falling corporate profit and shrinking advertising budgets. Other customers, including fast food restaurants and retail stores, also spent less on displays and signage as their revenue fell.” In the five years to 2012, industry revenue is expected to decline at an average of 1.9% annually to $12.8 billion. IBISWorld estimates that several hundred billboard and sign manufacturers closed in 2009 alone. Culbert adds that “in the five years to 2012, the number of firms operating in this industry declined at an annualized rate of 1.7%. Surviving companies are adapting to the difficult times by slashing head counts, aggressively managing input costs, lowering prices, or offering more high-margin digital products.”

While the recession was painful for billboard and sign manufacturers, sustained economic recovery will boost industry performance. “Corporate profit, Culbert says, will grow as the economy continues to improve, ultimately leading businesses to increase their advertising budgets. IBISWorld estimates that total advertising expenditure will increase 1.0% annually in the five years to 2017, marking a reversal from the past five years when advertising expenditures declined 0.5% annually. Industry operators will benefit from this factor because prolonged growth is needed before companies place orders for new billboards.” As a result, industry revenue is expected to increase by 5.3% in 2012, building on 2011 growth. Additionally, says Culbert “advertisers will continue demanding more digital billboards, digital displays and other digital products, a trend that began in the early 2000s. Companies with robust digital product offerings will lead the industry's recovery as buyers remain entranced by digital products' brightness, clarity and ability to target specific demographics.”

Market share concentration in the Billboard and Sign Manufacturing industry is low, with the three largest firms generating about 6.3% of industry revenue in 2012. The industry’s largest company by market share is Daktronics Inc. The cost of transporting heavy, bulky billboards, signage and advertising displays long distances prevents most industry operators from developing a national clientele. In general, this means that companies must source business locally and depend heavily on relationships with local customers.

For more information visit IBISWorld’s Billboard and Sign Manufacturing in the US industry page

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry manufactures billboards, scoreboards, retail store signage, and transit station advertising displays. Products may include non-electric signs, digital billboards, video screens and neon signs. The industry does not include outdoor kiosks, phone booth advertising, bus or taxi advertising and other street furniture. It also does not include any advertising or displays made from printing paper or paperboard.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
+1(310) 866 5042
Email >
Visit website