Demand from art dealers and improved consumer confidence will facilitate growth
New York, NY (PRWEB) September 13, 2014
The Picture Framing Stores industry is dominated by small companies operating from a single or a few locations that serve specific geographic regions. Operators benefit from a relatively consistent level of demand from the industry's primary market: households earning more than $75,000 per year. Still, the recession adversely affected all financial strata of the economy, thereby lowering demand in the wake of reduced disposable incomes. However, disposable income has bounced back to average yearly growth over the past five years as the economy recovered. This rebound has also translated into lower unemployment, improved consumer sentiment and higher demand for frames. Demand recovered as consumers began to feel more confident about their economic futures and chose to resume spending on discretionary items. Since 2010, the industry has exhibited positive growth.
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. Photos from the event are often framed to preserve and protect them. However, declines in the marriage rate over the past five years have limited demand from this market. Regarding profit, the price of plastics and resins represents an upstream variable that has a direct effect on input costs. According to IBISWorld Industry Analyst Omar Khedr, “Plastic prices have risen over the past five years, thereby raising the cost of materials, including moulding, laminates and ready-made frames.” As input costs have risen, operators have sought to save costs by reducing their work force and lowering wage expenses.
In 2014, IBISWorld anticipates that with rising employment and higher disposable income, consumer confidence will strengthen further and create a positive spending environment for custom frame jobs. Industry revenue is expected to grow in 2014. In tandem, per capita disposable income will rise over the year. “While the marriage rate is projected to continue falling, demand from art dealers is anticipated to grow,” says Khedr. Art dealers often sell original and unframed pieces, so their activity typically affects demand for framing. As the overall economy continues to accelerate in the five years to 2019, industry revenue is expected to increase at an annualized rate.
For more information, visit IBISWorld’s Picture Framing Stores in the US industry report page.
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IBISWorld industry Report Key Topics
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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