Hackworth worked on a custom wall paper project for the Foodbank of Southeastern Virginia. The project consisted of 35 individual wall graphics. The Top 60 shops had a gangbuster year in 2015, reaching an all-time high just north of $725M and showing nearly 13 percent yearover year growth. And according to all their comments, most are looking to keep the same momentum in 2016. “Over the past three years we have seen dramatic growth of 10 to 20 percent per year as a company,” said Brent Albers, owner Identity Signs in Sandy, UT. “As for 2015 we saw consistent growth the first three quarters of the year then we saw a cool down towards the end of year. Then, as January hit, the gas pedal was pushed to metal again. Our 2016 outlook is better than ever.” “ER2 Image Group increased volume by 20 percent from 2014. 2015 has been one of the largest revenue increases we’ve seen in the 25 years we have been in business,” reported Gary C. Schellerer, COO/VP of operations of ER2 in Bloomingdale, IL. “Industry revenue has increased steadily over the last couple of years (close to 15 percent annually) and our revenue (color and graphics department) has been on track with that as well. We see the industry to continue this trend in the near future. New technology and applications will continue to increase business opportunities throughout the industry,” said John Davis, CEO, Alabama Graphics, which has locations in Birmingham PrintingNews.com and Montgomery. However, there is an underlying thread of uncertainty that has weeded its way through shop owners’ insights. Dwindling margins for some applications like the out-of-home market, pricing pressures, low-bidders, economic uncertainty, consolidation, and market over-saturation has put the warning flags up and is forcing shops owners to yet again find ways to meet these growing business challenges. “2015 was one of the best years ever for Ferrari Color,” reported Shara Meredith, marketing director based in the firm’s Salt Lake City headquarters. “Clients were eager to cement their leadership positions in various markets. They used extensive graphics and signage to communicate with their customers. However, the biggest issue facing the sign and graphics industry is the merging of traditional and digital elements. This is affecting many of our retail ‘brick and mortar’ clients as well as our own markets.” Ferarri also has shops in Sacramento and San Francisco. According to Davis, “Pricing is all over the board, so it takes some digging to really compare apples to apples.” In Paramount, CA, Graphic Trends, Inc.’s VP of operations, Allen Gasper, concurs. “An over-saturation of printing companies and low bidders are making it difficult to stay stable and consistent. Old relationships with clients are put to the test with persuasive low prices and short-term agreements surrounded by poor service from unestablished newbies.” “Companies are killing the pricing on certain work. We all need to truly look at the numbers and not kill the pricing on the work that we are Wide-Format & Signage | April 2016 11
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