Big Picture: Picture Framing Stores in the US Industry Market Research Report Now Available from IBISWorld

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The Picture Framing Stores industry exhibits low concentration, with owner-operated firms dominating and most operating from a single or few locations that serve small geographic regions. Only Aaron Brothers manages to gain a significant share of the entire industry. Since 2009, the industry has exhibited slow recovery, posting marginal growth each year. Revenue is expected to post relatively flat growth of 0.3% during the five years to 2012. While the marriage rate is projected to continue falling, impeding industry growth, demand from art dealers is anticipated to grow. Further, overall economic improvements will spur revenue in the next five years. For this reason, industry research firm IBISWorld has added a report on the Picture Framing Stores industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Demand for frames will strengthen as consumer confidence improves

The Picture Framing Stores industry exhibits low concentration, with owner-operated firms dominating and most operating from a single or few locations that serve small geographic regions. Only Aaron Brothers manages to gain a significant share of the entire industry. The purchasing power of its parent company (Michaels Stores Inc.) enables the chain to achieve economies of scale. Firms benefit from a relatively consistent level of demand from the industry's primary market: households earning more than $75,000 per year. Still, according to industry analyst Josh McBee, “the recession of 2009 adversely affected all financial strata of the economy, thereby lowering demand in the wake of reduced disposable incomes.” Unemployment rose, consumer sentiment fell and demand for frames declined as well. Demand remained lukewarm as consumers lacked certainty about the economic future and chose to purchase their frames at alternative outlets such as big-box retailers. Since 2009, the industry has exhibited slow recovery, posting marginal growth each year. The two periods offset each other, and industry revenue is expected to post relatively flat growth of 0.3% during the five years to 2012.

Beyond disposable income, some industry-specific factors tend to dictate revenue performance. First, the marriage rate is a key indicator of framing activity because most weddings employ a professional photographer. The photos from the event are often framed to preserve and protect them. Unfortunately for frame shops, declines in the marriage rate during the past five years have limited demand from this market. McBee adds, “the price of plastics and resins represents an upstream variable that has a direct effect on input costs.” Plastic prices have risen during the past five years, thereby raising the cost of materials like moulding, laminates and ready-made frames. As input costs have risen, firms have sought to save costs by reducing their work force and lowering wage expenses.

In 2012, IBISWorld anticipates that recovering employment and disposable income will strengthen consumer confidence and create a more positive spending environment for the Picture Framing Stores industry. Revenue is expected to grow 0.6% in 2012 to total $2.4 billion. While the marriage rate is projected to continue falling, demand from art dealers is anticipated to grow. Art dealers often sell original and unframed pieces, so their activity typically affects demand for framing. As the overall economy pulls itself out of the financial quagmires in the five years to 2017, industry revenue is forecast to increase.

For more information visit IBISWorld’s Picture Framing Stores in the US industry page

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This industry primarily provides custom framing services for pictures and other items. Industry establishments may also retail ready-made frames and other crafting supplies. This industry does not include broad-line crafting stores that also offer framing services.

IBISWorld industry Report Key Topics

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.

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Gavin Smith
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