Signs for the sign industry

Companies thataren’t able to keep up with the market do not stay around for long. That should be news to no one in America. We’ve all seen that local restaurant or store we liked suddenly close down, unable to make the numbers work well enough to justify them staying in business. While this sad reality happens every day, the only thing businesses can do is make sure they are on top of their game, staying ahead of the competition and remaining desirable to consumers.

No where is this more true than in the sign and graphics industry, a cutthroat business since it is viewed by most consumers as a commodity. Companies are often competing on price while trying to distinguish the quality of their work. If anyone is going to survive this market, they need to find every resource they can in order to hold onto their position. Fortunately, a number of industry resources exist for this.

Overall, the market is trending more towards signage more closely related to actual conversions, rather than those that just garner eyeballs and perhaps lead to a conversion at some point in the near future. What this means practically is that demand for outdoor signage has been falling, dipping 0.4% in 2017 while demand for indoor signage climbed 1.2%. While these numbers themselves may not exactly be all that impressive, if this turns into a long term trend companies operating in this space need to take notice and shift their business models accordingly. If you find yourself competing for a shrinking market, staying in business will only become that much harder.

Another macro-trend for signage businesses to consider – the general economy. Their industry is by and large correlated with the general economy. When things are good, business is good, when things are bad, business takes a hit. After all, there is going to be more demand for signage of all kinds when the economy is growing and businesses are expanding. Consider a construction project – when a construction company is contracted out to build a new high rise, they are going to buy a lot of fence wraps for the site to advertise not only their own brand but what they are building and who it is being built for as well. Once the building is finally completed, there are all sorts of opportunities for signage inside and out. The company that has naming rights to the building will of course want their own brand name in large letters across the top, but companies on all levels throughout the structure will need indoor signage for their offices, especially if they host meeting with customers here. The building’s managers will have to choose outdoor signage as well – dibond is great for outdoor signs – and this means lots of business. Not only the parking lot but also entrances and exits as well as any external events these companies host. Imagine this on a nationwide scale and you can see why the signage and graphics industry is heavily tied to the economy at large.

For that reason, business owners in this industry need to watch macro economic trends and stay ahead of them, preparing for a slump and trimming their fat when they see that coming and then beefing up again when things look on the cusp of improvement.

Speaking of keeping up with the economy, the signage industry is far from immune to technological change. The International Sign Association issues a quarterly report to inform businesses operating in this space, saying demand for digital and electric signs will continue to grow in 2019, though slowing a bit from 2018. New technology in the signage industry will continue to influence this, as older models are phased out in favor of newer, more efficient digital signs that can offer users a better all around display. While this means that demand can continue to grow as the technology improves, it also means that inventory can become obsolete if it is not cycled fast enough. Entrepreneurs here need to make sure that they are not buying last year’s models right before the next best thing comes out in order to get the best price for their purchases.

Overall the industry shows a number of promising indicators for the future, with demand pretty consistently growing. Only by continuing to monitor all these factors can you hope for success in this industry. Groups like the International Sign Association are a great resource for you, as they publish information all the time that can be used to gauge both the effects of the economy at large on the industry and the specifics goings on that will shake things up in the signage and graphics industry. If you don’t keep up, you’ll have no one to blame but yourself for being unable to survive the market!

*** SPECIAL ALERT — June 27, 2020 — THREE of this Year’s Motley Fool Stock Picks Have Already Doubled! ****

We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 4+ years, 54 months and 108 stock picks. As of Friday, June 26th 3 of their 12 2020 stocks picks have already doubled (TSLA, ZM, SHOP). In addition, 4 of their 2019, 8 of their 2018, 7 of their 2016 and 10 of their 2016 picks have also doubled. Best of all, over these 54 months, the average stock pick is up 111%. That beats the SP500 by an average of 87%. And that’s even accounting for all of this COVID mess that has wreaked havoc on some stocks but presented opportunity for other stocks. THAT is how the Fool does so well!

  • Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 26%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 46%
  • Netflix (NFLX) picked November 21, 2019 and it is up 42%
  • Trade Desk (TTD) picked November 11, 2019 and up 111%
  • Zoom Video originally picked Oct 3 and it is up 234%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 44%

Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 424% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

CLICK HERE to get The Motley Fool’s Stock Picks for just $99 per Year! 




GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it’s too late)

Leave a Reply

Your email address will not be published. Required fields are marked *