Demand from art dealers and improved consumer confidence will facilitate growth.
New York, NY (PRWEB) September 15, 2014
Small companies operating from a single or a few locations that serve specific geographic regions dominate the Picture Framing Stores industry. 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 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. IBISWorld Economic Analyst Omar Kedhr says, “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.
IBISWorld analysis reveals that the Picture Framing Stores industry exhibits a low level of market share concentration. Most industry firms are single-location, owner-operated enterprises serving a relatively small geographical area. Industry concentration has grown during the past five years as firms closed locations or left the industry in the wake of the recession. In the five years to 2014, the number of establishments is expected to fall. “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,” says Kedhr. Industry revenue is expected to grow in 2014. In tandem, per capita disposable income will rise by over the year. 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 continues to accelerate in the five years to 2019, industry revenue is expected to increase.
For more information, visit IBISWorld’s Picture Frame Stores in the US industry report 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 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
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.