All good things must come to an end and booming aspects of the sign, graphics and visual communications industry are showing signs of a slowdown for the remainder of 2019. That is according to the ISA Sign Industry Quarterly Economic Report for the third quarter of 2019.
The overall U.S. economy is slowing down to 2 percent growth while the global economy is vulnerable to shocks like the Saudi Arabia oil attack and an escalating trade war. End markets in the sign, graphics and visual communications industry will rebound slightly in 2020.
The report assesses four segments of the industry: two supplier markets (printing and electrical/digital signage) and two end markets (electric/digital signage and architectural signage). It also forecasts commodities. The Sign Industry Economic Report, prepared in October, is sponsored by the National Association of Sign Supply Distributors (NASSD).
It is compiled by IHS and Vandiver Associates and analyzes each segment of the market upstream and downstream to allow users to stay current with evolving business conditions.
The market indexes for the print and architectural side of the industry have turned negative for 2019 pointing to a slowdown for the remainder of the year.
Recent data have also suggested weakness on the digital/electric side, and the index has been revised downward. However, both remain in positive territory.
The end markets are expected to tread above water in 2020, while the supply side of the industry experiences continued headwinds.
The outlook for supply-side printing has weakened since the last update. The manufacturing sector is currently in recession and excessive inventory building is a primary factor.
Performance on the digital side of end markets will likely continue in positive territory next year but weakness will follow.
Those interested in learning more about the ISA Sign Industry Quarterly Economic Report, including the outlook for the rest of the year, can participate in a free webinar hosted by ISA at 2 p.m. ET/11 a.m. PT Wednesday, October 23. Register at www.signs.org/webinars. The webinar is free for ISA, ISA Affiliated Association and NASSD members or $100 for non-members.
The report also is free for ISA, ISA Affiliated Association and NASSD members. Non-members may purchase it for $1,000 per quarterly forecast.