Billboard and Sign Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
Uncertain economic conditions have hindered demand for industry products during the past five years as advertisers tightened spending on billboard and sign placement as total advertising expenditure fell amid falling corporate profit. Fortunately for manufacturers, the outlook is much brighter and for these reasons, industry research firm IBISWorld has added a report on the Billboard and Sign Manufacturing industry to its growing industry report collection.
Los Angeles, CA (PRWEB) May 18, 2013
Uncertain economic conditions have hindered demand for Billboard and Sign Manufacturing industry products during the past five years. Billboard and outdoor display advertisers tightened spending on the industry’s services as total advertising expenditure fell amid falling corporate profit in 2009. According to IBISWorld analyst Austen Sherman, other customers, such as retail outlets and automobile manufacturers, also spent less on displays and signage as revenue fell following the recession. While revenue has returned to mild growth in more recent years, IBISWorld estimates that industry revenue has fallen at an average annual rate of 0.2% to $1.3 billion during the past five years, including growth of 0.1% in 2013.
Industry revenue declined in 2010 and 2011 after the effects of the financial crisis took hold. The declines largely occurred when many of the industry’s key buying segments dramatically slowed purchases. In addition, “prior to the decline in domestic demand, industry operators suffered from reduced demand from its largest trade partner, the United States,” Sherman explains. Export revenue fell more than 50.0% in 2009 and at an annualized rate of 11.2% during the five years to 2013, because the US economy has struggled to rebound from the global financial crisis.
As demand slowed and profit fell, operators in the Billboard and Sign Manufacturing industry cut costs aggressively. Fortunately for some operators, cost-cutting measures have resulted in a slightly improved profit margins. Still, others closed their doors due to the poor operating environment. IBISWorld estimates that the number of companies has remained stagnant as a result. Most of the industry´s existing larger companies are headquartered in the United States; they include Daktronics Inc. and Brady Corporation. 20-Twenty Marketing is based in Saskatchewan. Other major companies that influence the industry (but do not manufacture billboards or signs) include outdoor sign management firms Clear Channel Outdoor Canada and Lamar Advertising Company.
During the next five years, however, revenue will grow as clients dedicate an increased portion of corporate profit toward advertising, corporate rebranding and new signage. This increase in total marketing expenditure is expected to push up industry revenue. Additionally, advertisers will continue demanding more digital billboards and digital displays, a trend that began in the early 2000s that offers higher margins. Companies with robust digital product offerings will lead the industry’s recovery as buyers remain entranced by digital products’ clarity and ability to target specific demographics. For more information, visit IBISWorld´s Billboard and Sign Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures billboards, scoreboards, retail store signage, and transit station advertising displays. Products may include nonelectric signs, digital billboards, video screens and neon signs. The industry does not include outdoor kiosks, phone booth advertising, bus or taxi advertising and other street furniture advertising. It also excludes any advertising or displays made from printing paper or paperboard.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/5/prweb10746286.htm