Sometimes, the information you don't receive is the most compelling. Although Table 5 in the following report says that the average respondent saw its sales rise approximately 5% from 2001 to 2002, we had to ask some additional questions. Given our knowledge of the quantity-sign portion of the industry, we asked Smyth Marketing Resources, our research company, if they had received a response from Company X. Or Company Y. Or Company Z.
They hadn't. From other sources, we knew that these companies suffered declining sales in 2002. We knew that a 10% decline in sales for them countered a 10% increase from 20 custom-sign companies. We knew from the suppliers of basic industry products that sales were down. So our best estimation is a 5% decline in the on-premise, electric-sign industry in 2002, which drops the overall industry figure to $5.1 billion. The silver lining is the seeming improvement for the custom-electric portion of the industry.
This represents the second consecutive year for an overall industry decline, an approximate 9% drop from a high of $5.6 billion for 2000. This happened once before. The industry peaked at $3.6 billion in 1989 and then suffered consecutive years of decline down to $3 billion. However, from 1992-2000, a nine-year period, industry sales nearly doubled.
To view a full 2002 Electric State of the Industry Report (13 pages), purchase a back issue of Signs of the Times, July 2003 magazine here.
Preview:
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Sales Volume |
Number |
% of Total |
Sales (000) |
% of Total |
Sales per Respondent |
|
$5 million or more |
42 |
17.4% |
$468,005 |
68.0% |
$11,142,982 |
|
$2,500,000-$4,999,999 |
23 |
9.5% |
$79,580 |
11.6% |
$3,460,019 |
|
$1,000,000-$2,499,999 |
60 |
24.8% |
$91,292 |
13.3% |
$1,521,532 |
|
$500,000-$999,999 |
48 |
19.8% |
$33,936 |
4.9% |
$706,993 |
|
$250,000-$499,999 |
27 |
11.2% |
$10,119 |
1.5% |
$374,769 |
|
$100,000-$249,999 |
25 |
10.3% |
$3,896 |
0.6% |
$155,829 |
|
$50,000-$99,999 |
11 |
4.5% |
$824 |
0.1% |
$74,909 |
|
Less than $50,000 |
6 |
2.5% |
$15 |
1 0.0% |
$25,159 |
|
Total |
242 |
100.0% |
$687,803 |
100.0% |
$2,842,160 |
Change
2001
2002
2003
2001-03
$50,000 and above
25.7%
25.3%
23.1%
-2.6 pts.
$10,000 to $49,999
37.6%
35.2%
29.8%
-7.8 pts
$5,000-$9,999
16.8%
13.7%
19.0%
2.2 pts.
Less than $5,000
13.3%
14.2%
18.2%
4.9 pts.
None
5.8%
9.0%
7.9%
2.1 pts.
Don't Know
0.9%
2.6%
2.1%
1.2 pts.
Mean
100.0%
100.0%
100.0%
Average
$28,700
$28,070
$25,490
-11.2%
We asked about expected equipment
purchases for 2003. The average of $25,490 is the lowest we've seen
in all four years, and the figure has declined every year (Table
7).
Table 7 Three-Year
Comparison of Anticipated Equipment Investment
Change
Type of Business
2000
2001
2002
2000-02
Manufacture of Custom Electric
Signs
41.3%
41.0%
43.0%
1.7 pts.
Maintenance & Repair of Electric
Signs, Lighting
14.4%
15.1%
13.7%
-0.7 pts.
Erection & Installation of Signs for
Other Companies
11.2%
11.3%
10.8%
-0.4 pts.
Manufacture of Quantity Production,
Electric Signs
9.4%
8.6%
8.5%
-0.9 pts.
Design and/or Installation of Lighting
Projects
7.7%
6.7%
6.3%
-1.4 pts.
Manufacture of Architectural Sign
Systems
3.6%
4.5%
3.9%
0.3 pts.
All Other Non-Electric, Sign-Related
Business
12.4%
12.9%
13.8%
1.4 pts.
Totals
100.0%
100.0%
100.0%
Although activity increased in every area, the mix of types
of business conducted remained consistent over the past year, as well
as the past two years. Table 9a indicates that Custom-built
signs increased the most from 41% in 2001 to 43% in 2002, and
maintenance/repair decreased the most from 15.1% in 2001 to 13.7% in
2002.
Table 9a Three-Year Comparison of Distribution of
Business
Mostly Custom-Built
Mostly Number of Employees
Total
Electric Signs
Electric Signs
Full-Time Production Personnel
17.0
16.5
38.4
Full-Time Administration/Clerical
4.4
4.4
12.3
Full-Time Sales/Sales Management
3.9
3.9
6.7
Full-Time Total
25.4
25.0
57.5
Part-Time Production/Personnel
0.5
0.5
1.7
Part-Time Administration/Clerical
0.2
0.2
0.3
Part-Time Sales/Sales Management
0.1
0.1
0.0
Part-Time Total
0.7
0.6 (n=162)
2.0 (n=20)
Table 17 indicates an average of 57.5 employees at
quantity-sign companies; for 2001, that figure was 84.3. For all
previous years (1995-2000), the lowest figure had been
123.8.
Table 17 Average Number
of Employees on Payroll
Quantity-Production
