ISA Wide Format Print &

Media Mix Survey

Part One

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ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

. Inte rnat ional Sign Assoc iat ion 1

Introduction

The International Sign Association (ISA) leadership was asked to develop a

research survey to make some determinations about the state of the signage and

graphics market and the tools, technologies, and brands that ISA membership

counts on to conduct its business. InfoTrends, a market research and consulting

company that focuses on the printing and imaging business and with expertise in

electronic survey methods, was fortunate to be selected to contribute to this effort

as a research partner for ISA.

The stated objectives of this survey are:

To develop an accurate profile of ISA member & non-member companies by

size of company (number of employees and revenue), production volume

and other key metrics.

To get a firm understanding of the adoption of digital printing within the sign

industry.

Examine the primary applications for wide format digital printing solutions

and try to determine which applications are growing as a percentage of the

signage and graphics business.

To measure current wide format digital print media mix and brand

preferences as well as purchase volume, purchasing expectations and

purchasing decision criteria.

The combined survey included approximately 30 questions and was sent in two

separate invitations to participate. InfoTrends and the International Sign

Association extend their thanks to those who completed the survey.

This document provides the results from the first of the two surveys.

We hope you find these results informative and useful.

Key Takeaways Small shops make up

approximately 70% of the establishments within signage and graphics producers. This places a large emphasis on the importance of efficiency and cash flow management.

Digital printing is already the primary production method within the signage and graphics market

Within digital printing eco-solvent inkjet is the primary technology employed but UV-curable inkjet is coming on strong.

As expected, signs, banners, vehicle wraps and graphics are the top applications among these respondents

Durability, print quality, and price are the top wide format digital print media brand selection criteria

ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

. Inte rnat ional Sign Assoc iat ion 2

Respondent Profile

Any survey should first indicate the role of the respondents. It is important to understand the role of the

respondents because it impacts their responses and their ability to respond to certain elements of the

survey. In this case, the respondents overwhelmingly represent leadership positions at these signage and

graphics companies.

President/CEO/Owner 74%

General Manager, COO, VP Mfg. 9%

Prepress/Production Manager 8%

VP Sales & Marketing 6%

IT Manager/CTO 2%

In-plant Manager 1%

Respondents by Establishment Type

One of the trends that InfoTrends has identified for a number of years is the continuous evolution of the

wide format signage and graphics market. Over time there have been a number of companies from other

traditional segments of the printing industry that have entered the signage and graphics market seeking

growth and higher profit margins. The chart below illustrates some of this evolution. The ISA membership

now includes shops that dont refer to themselves as sign shops but as digital graphics print shops,

digital printing specialists, or some other form of printing company.

Which of the following best describes your print operation?

Sign shop 72%

Digital graphics print shop

15%

Digital printing specialist

5%

Other print company4%

Other4%

ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

. Inte rnat ional Sign Assoc iat ion 3

1 to 427.5%

5 to 935.0%

10 to 197.5%

20 to 4917.5%

50 to 995.0%

100 to 2497.5%

Mean: 27.1 Employees

Under $500K44.2%

$500K to $999K25.8%

$1.0M to $1.9M10.0%

$2.0M to $2.9M5.0%

$3.0M to $4.9M1.7%

$5.0M to $9.9M5.8%

$10.0M to $19.9M0.8%

$20.0M to $49.9M4.2%

$50.0M or more2.5%

Mean: $4.2M

Shop Size

Most of the shops that responded to the survey were fairly small in terms of revenue and number of

employees. Over 62% of the establishments have fewer than 10 employees and almost 70% have less

than $1 million in annual sales.

In total, how many employees work at your company (at your facility)?

The size of the average establishment is an important dynamic within the signage and graphics market.

While all shops try to run efficiently, small shops are perhaps more acutely affected by issues that impact

cash flow. An example of how digital printing is enabling more efficient operations is in how shops

manage inventory. When shops were making signs by primarily cutting vinyl, they needed to manage an

inventory of many different colors of vinyl. Using digital printing, all the vinyl is white which means shops

dont have to tie up their cash in inventory.

ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

. Inte rnat ional Sign Assoc iat ion 4

Own Wide Format Digital Printers vs. Outsource

Many signage and graphics producers are smart about how they serve their customers. They recognize

that they dont have to own all the equipment they could possibly need to serve their customers, in some

cases it is better to outsource work that they are unable to do themselves. 21% of the shops surveyed

reported that they dont own any wide format digital printers, outsourcing all of their wide format print

production, while only 33% of the shops surveyed reported that they dont outsource any work.

Do you have your own wide format digital printers or do you outsource wide format digital work?

We have our own, dont outsource

33%

We have our own printers, still

outsource sometimes

46%

We dont have our own printers,

we outsource wide format print

production21%

ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

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Shops Often Own Multiple Devices, Multiple Technologies

For the shops that own their own wide format production equipment, they often own multiple pieces of

equipment and technology. Shops do this for several reasons, they may need multiple devices to satisfy

capacity requirements, or they may buy several of the same production device to create redundancy as

part of a lean manufacturing strategy.

The most common technologies they own include analog, which is color-cut vinyl and screen printing

equipment. When they have an aqueous inkjet printer they typically have more than one, which is

probably because they use one as a proofing system and one as a production system.

How many of the following types do you have?

0.3

1.3

1.3

1.3

1.3

1.3

1.5

1.5

1.8

2.3

0 1 2 3

Other

Eco-solvent inkjet

Solvent-based inkjet

Dye-sublimation

UV-curable hybrid

UV-curable flatbed

Latex inkjet

UV-curable roll-to-roll

Aqueous Inkjet

Analog processes

# of Printers

ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

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Digital Printing Will Represent a Larger Share of Production

As noted previously, digital printing technology is enabling a transformation in the signage and graphics

market. Already shops report that digital printing represents more than half of their production, and they

expect digital printing to make up a greater share of their production over the next two years.

Thinking just about your wide format graphics business, approximately what percentage is produced using the following methods now and in 2 years?

58.9%

32.9%

5.0%3.2%

64.4%

28.3%

4.8%2.5%

0%

10%

20%

30%

40%

50%

60%

70%

Digital print Cut vinyl Other Screen print

now

in 2 years

ISA Research Report ISA Wide Format Pr int & Media Mix Survey Part One

. Inte rnat ional Sign Assoc iat ion 7

Wide Format Digital Printing Technology

Eco-solvent inkjet is the dominant wide format digital print technology among the signage and graphics

shops surveyed. Eco-solvent inkjet is a very strong technology choice for signage and graphics shops

because of its ability to print a wide range of applications, competitive running costs, good image

durability, and low price. Also, some of the most popular eco-solvent devices on the market have

integrated cutting systems included, which provides additional value for small shops that need to produce

contour cut graphics.

The chart also indicates that 25% of the