SGIA Survey Synopsis

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.
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