It’s the season for surveys! SGIA just completed tallying the results for their annual survey of 193 graphics and sign companies and they have published their results. In a nutshell:
- Customer Geographic Breakdown: Twenty percent service international accounts, over half serve national accounts, 62 percent serve regional accounts while two-thirds serve local customers.
- Digital vs. other processes: Ninety-seven percent classify themselves as utilizing digital technology.
Fifty-six percent classify themselves as multi-technology shops.
Forty-three percent say screen printing is the second most common technology.
Litho/offset is used by less than 25 percent.
- The most common equipment purchased last year was the latex inkjet (↓96 inch wide).
The UV-curable flatbed inkjet system is at the top of everyone’s digital press wish list.
The top finishing equipment “want” is cutting/trimming/routing/die-cutting equipment.
- Equipment was purchased by three-quarters of the respondents.
Of that number, 55 percent purchased production equipment worth over $50K.
Almost three-quarters of respondents plan to buy more than $5K in equipment in 2015.
Fifty-five percent say they will purchase equipment worth $50K or more this year.
- Top buying consideration? Price, followed by cost to operate then capabilities range.
- Markets served by respondents were food services, corporate branding then non-profits.
- Respondents see food services, interior decorators and design industries growing while government and government contractors are seen as declining.
- Top products produced for these industries are trade show displays, banners and decals.
Least? Wall graphics, environmental graphics, building wraps. Most declining? Billboards.
- Median sales growth: 16 percent
- Almost three-quarters of respondents say both sales and production levels have increased.
- Employment levels have increased.
- Barriers to Growth? Downward pressure on prices, finding new customers, recruiting new sales people.
- Respondents attract new customers by referrals and company website followed by social media.
- Common production strategies include operating cost reduction, new product lines and one-stop shopping.
- Common sales and management strategies are increased presence online, improved customer service and additional sales staff.
- Terms of Credit: two-thirds are at 30 days with outstanding receivables at 6.9 percent.
- Median annual revenue of respondent companies is $1.234 million per year.