Vol. 1, No. 11 | June 15, 2006
TABLE OF CONTENTS
This Month’s SBI Trivia Question Stumper:
Based on 2004 year-end expenditures, which U.S. corporation spent the most money on outdoor advertising?
For the answer, scroll to the bottom of the newsletter.
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Industry News
[[HOT TOPIC]] Wood vs. HDU: Can Wood Suppliers Take Advantage of High Oil Prices?
Will wood find its way back into the heart of the signface market as oil-based HDU products wait out rising petroleum costs? Last month, we heard from an HDU manufacturer who said his product is still superior to wood. [To
read John Meeks’ comments from last month, scroll down to the SBI Update Archive and select May 2006.]
This month, the Hot Topic does a double-take. To get the best perspective on the wood market in whole, we spoke to one company that works with cedar, and one that works with redwood: On the cedar side, Cees Vansanten, of AllWood Sign Blanks in Vancouver Island, British Columbia; and Clista Lewis, of Lewis Redwood Products in Northern California. Both weighed in on the current
conditions of the wood market, and commented on the competition with HDU.
First, let’s hear from Clista Lewis and the redwoods:
“I read the comments by John Meeks [SBI Update, May 2006 Hot Topic], and it really kind of disgusted me. Some of it was ok, and he was right about some things. But he was talking about the redwood and what poor quality it is now, and I did not like that. The market is still pretty high for redwood because of its availability. We live in the heart
of the redwoods, and our quality and our availability is really very good. Yet Mr. Meeks really slammed the redwood market. Even though I know that there are people that sell redwood that is not of the highest quality, I felt that Mr. Meeks said that there was no good redwood out there, and that is simply not true.
“Factually, I would respond by saying we still have old-growth redwood in our area. We still have the highest quality that you can buy, which you cannot find in a lumberyard.
But our quality is really superior to what Mr. Meeks was saying. We have a good market for it and we have happy customers.
“Mr. Meeks slammed the redwood as being poor quality that doesn’t last like it did in the past; and maybe some of those qualities aren’t lasting. But if you have the old growth redwood, they are lasting longer than HDU. You put an HDU in the midst of some weather problems like strong winds, and they are getting smashed to smithereens. So I think redwood is a much
stronger product and better able to weather the elements, which don’t seem to affect redwood like they do HDU.
“We’re not really targeting the current weakness in the HDU market with regard to the oil prices. We have our normal advertising in place and we haven’t upped that to take advantage. But if the prices continue to rise, we would reconsider that approach.”
And from the cedar side, Cees Vansanten:
“I’m hoping the cost of HDU production is going through the
roof. On the wood side, [rising oil prices] really don’t have an affect on the actual raw lumber cost. All the other things that are associated with it—like the glue that we use—obviously goes up a bit. Transportation costs for moving the stock around is going up, but that’s only a very small percentage of the overall product. So our pricing is fairly steady.
“HDU manufacturers have pretty much stopped promoting their product in the sign industry as far as I can tell. When you go to sign
shows, there used to be humongous booths with different types of sign foam out there. But the last couple of sign shows I’ve been to, the HDU manufacturers just haven’t been there. I don’t know if they figure they have the market cornered or if they’ve given up on it. Obviously it’s still a huge percentage of the industry for blasted signs. I do have a feeling that the HDU manufacturers are losing ground rapidly because of the increased oil prices.
“We’ve noticed an increase in our sales
over the last year-and-a-half. We’ve seen a fairly steady and healthy increase in it, and I think the oil prices are part of that. It also is partly due to us expanding our distribution network to where our blanks are now available in just about every state in the U.S. People have gotten used to being able to find a distributor and obtaining a blank overnight. Whereas that used to be quite unusual when you were dealing with a wood sign.
“There is a push toward a more rustic signage look.
There’s actually quite a few municipalities now that are putting in bi-laws stating that state they don’t want any signs that you can light up, because they want a more natural look. And that’s where wooden signs jump in.
“Competing with HDU, it’s been a struggle getting established and letting people know that the alternative is still out there.
“We’re not purposely trying to take advantage of the high oil prices affecting HDU. We’re still struggling with letting people know that
our blanks are available and through what distributors. But watching the oil prices is a different angle that is certainly intriguing.”
Department of Energy Funds $7 Million LED Lighting Project
The U.S. Department of Energy (DOE) recently announced that it will be making a $7 million investment for solid-state lighting product development to be done by
several prominent lighting companies familiar to the sign industry.
In an effort to improve energy conservation nationwide, the DOE has called for help from Color Kinetics Inc., Eastman Kodak Co., General Electric Global Research, OSRAM Sylvania Development Inc., and SRI International. These five companies, all major players in the signage business, will utilize portions of the $7 million fund to develop LED and other lighting solutions that require less energy consumption than
incandescent and other standard light sources currently in use across the country. The companies will share an average of 30 percent of the costs of their projects.
“Solid-state lighting is a key part of President Bush’s energy policy and the Department of Energy’s overall strategy to increase energy efficiency,” said Energy Department Secretary Samuel W. Bodman. “Not only does this technology have the potential to greatly reduce lighting energy consumption in U.S. buildings, it will
also enhance our energy security.”
Color Kinetics will develop replacement lamps for incandescent light sources using a hybride-LED source. Eastman Kodak will attempt to increase performance and durability of OLED devices. General Electric Global Research will work to create white light from violet LEDs. OSRAM Sylvania Development aims to enable as much of the generated light as possible to escape an LED lamp. And SRI International will try to increase the efficiency of OLEDs.
Billboard Provision Removed From Hurricane Recovery Legislation
While the destruction of signs and billboards by hurricane Katrina has been well documented by Sign Builder Illustrated and the mainstream media, the
plight of sign owners and builders has been taken up by some politicians, only to be rebuffed by Congress.
A bill currently under construction in Washington is set to help the Gulf area recover financially from the affects of Katrina. Agriculture, housing, and infrastructure are all addressed. Through a proposed amendment to the bill, Republican Utah Senator Bob Bennett wanted the government to exempt billboard owners whose property was damaged or destroyed by Katrina from a federal law
that prohibits the reconstruction of old signs that do not conform with current sign regulations.
However, the amendment was dropped from the bill this week due to discrepancies in the versions presented by the two branches of Congress. Bennett’s stipulation would have allowed sign owners in 13 states affected by hurricanes to replace their property, thereby going against Lady Bird Johnson’s Highway Beautification Act of 1965.
OSRAM Introduces New LED Partner Network
OSRAM Opto Semiconductors recently announced its new partner network and Web site, LED Light for you (LLFY), which will “help customers find suitable partners for their intended
LED applications, particularly in the general lighting arena,” according to a company statement.
LLFY will target designers and architects, lighting specifiers/consultants, and lighting fixture manufacturers to keep them up to date on LED lighting applications.
“With advancements in LED lighting technology, general lighting applications are starting to use this powerful light source,” said Ellen Sizemore, North American director, LED and IR Products Groups, OSRAM Opto
Semiconductors. “We hope to provide s one-stop resource for customers that inspires and helps them bridge the gap from the technology to the application.”
The Web site (www.ledlightforyou.com) will be the key component for connecting OSRAM’s customers and certified LLFY partners. Registered users will have access to these partners, who are chosen based on “innovative technologies, ability to provide first-class support, and regional availability,” among other rigid qualification
criteria.
Van Wagner’s UK Operation Now a Clear Channel for Ads
Clear Channel Outdoor, the outdoor advertising arm of omnipresent media conglomerate Clear Channel Communications, recently announced that it has acquired the British
operations of competitor Van Wagner, according to a Reuters report.
Through the purchase, Clear Channel Outdoor takes over some 70 advertising sites in London, including a large display in Piccadilly Circus. “This acquisition will strengthen Clear Channel Outdoor’s position in London, one of the world’s most important ad markets and the host city of the 2012 Olympics,” said Clear Channel Outdoor President Paul Meyer.
New Appointments
Alameda Company, a converter of pre-press films and papers, pressroom supplies, printable plastics, and digital wide format media, appointed Doug Von Dollen as digital products manager, in charge of the company's large format
and digital proofing media programs.
Alumigraph Interior Sign Systems, announced the addition of Alison Balestra as sales and marketing coordinator.
Seertech Corporation, a provider of technology for use in the display and signage industries, announced that President and CEO Frank Bachinsky is taking over as chairman of the company. The firm also added BACE International Corporation President and CEO William Baumgardner, Jr. to the board of directors of
Seertech.
Meetings and Events
JUNE
June 22 - 24: Midwest Sign Show 2006, an ISA-sanctioned event, is scheduled for the Marriott Northeast in Cincinnati, Ohio. 513/753-6048 www.msassn.org.
AUGUST
Aug. 9 - 13: SIGN-A-RAMA's World Expo 2006. Marriott River Center Hotel, San Antonio, Texas. 561/640-5570 x1466; www.2006worldexpo.com.
SEPTEMBER
Sept. 26 - 29: SGIA '06 Specialty Printing & Imaging Expo. Las Vegas Convention Center, Las Vegas, Nevada. www.sgia.org
Sponsored Links
M2 Lighting Solutions, LLC -- NEW epoxy-encapsulated UL recognized LED channel letter lighting system that will stay bright even in your most challenging conditions. www.M2Lighting.com
Elliott Equipment Corporation -- Award-winning HiReach & BoomTruck aerial-workplatforms and cranes. Elliott products increase your productivity, and give you the highest ROI available. Do more with Elliott. www.elliottequip.com
This Month's Trivia Answer:
McDonalds*
*According to the Outdoor Advertising Association of America (OAAA).
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For in-depth coverage of these topics and other sign industry topics, check out
www.signshop.com
ATTENTION SUBSCRIBERS:
Coming up in the July 2006 issue of
Sign Builder Illustrated,
feature articles on:
Digital Printing on Banners
Electronic Digital Signage
LED Lighting
Routers/Engravers
Tri-face
Large Format
Vinyl
ATTENTION ADVERTISERS and SUBSCRIBERS:
Coming up in the August 2006 issue of
Sign Builder Illustrated,
feature articles on:
Architectural Letters
Awnings
Gold Leaf
LED Channel Letters and Sign Cabinets
Neon Schools
Vehicle Graphic Paints
Contact your ad sales representative to reserve your space today.
As we shape SBI Update into the premier
e-newsletter for the sign industry, we encourage our
readers to send us feedback on what you like, what you'd like to see, and any other comments you might have. To do so, send an e-mail to Associate Editor Chris Ytuarte at cytuarte@sbpub.com.
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© 2006 Simmons-Boardman Publishing
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Sheffield Plastics Inc, a Division of Bayer Material Science, manufacturers extruded polycarbonate sheet or reels known as Makrolon® SL for the sign industry. Sheffield Plastics produces VIVAK HT, a proprietary copolymer for indoor or outdoor signage, and has a full line of "None Tougher / None Clearer" signage products to meet the most demanding specifications. Click on the Sheffield logo above to
visit the Web site.
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Sign Systems is a total solution sign-creating system for sign makers and sign suppliers. Capitalizing on our proprietary combination of photo resist films and etchable sign blanks, Sign Systems is the preferred method for quickly producing unique, high-detailed signage—the fastest growing segment of the $2.5 billion U.S. retail signage industry. www.ikonicsimaging.com. Click on the IKONICS logo above
to visit the Web site.
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SloanLED addresses the exploding demand for white LED sign and architectural lighting with three different channel letter LED modules, a reverse letter LED strip and the original LED border tube. Learn more about these class-leading products and the complete SloanLED sign products line by clicking on the SloanLED logo above. Click on the SloanLED logo above to visit the Web site.
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Popco Inc. is a display parts source for designers, manufacturers, and users of point-of-purchase signage. Our new on-line catalog includes: poster sign mounting, sign bases and channels, VELCRO and magnetic tape, fasteners and binding posts, fold-up literature pockets, and molded take-one boxes. Visit our website by clicking on the Popco logo above.
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Join the specialty imaging community and explore the newest technologies, the latest innovations, and the most exciting developments in the graphics world. SGIA ’06 will be home to more than 500 leading suppliers launching products and showing their freshest approaches to your markets. Register by July 15 and receive a Free Expo Pass. For more information, click on the SGIA logo above.
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Sign Builder Illustrated:
The How-to Book Vol. 1
Learn secrets to fabricating neon, illuminating with LED, sandblasting signs, applying paints, cutting and printing vinyl and more in this 288-page, full-color reprinting of Sign Builder Illustrated's how-to articles. To visit the How-to Book Web site, click on the image above.
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Sign Builder Illustrated is the "How-To" magazine for the sign industry. With step-by-step instructional features, columns penned by industry experts, and news spanning the signage landscape, Sign Builder Illustrated has the answers. For subscription information, click on the magazine cover above.
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DOE's $7 Million LED
Project