Presenting The Industry Perspective

By: Ken Peskin

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Who are We?

• Greater DFW Sign Association represents 30+ local, regional, and national companies operating in the north Texas area

• In addition to companies serving the local market needs, DFW sign industry features several large “export businesses”, building products for other cities and states

• Sign manufacturing in Texas is a $746 million industry, with a payroll in excess of $190 million (Probe Economics/ISA 2008)

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This Isn’t a Sign Issue; It Needs to Be a BUSINESS Issue

• “Signs” aren’t viewed favorably by city officials and politicians◦ At best, officials are ambivalent or consider them a

“necessary evil”◦ Communities restrict all sorts of things that are

unpopular or undesirable (multi-family housing, liquor stores, adult businesses)

• Though “signs” aren’t important, successful businesses are VERY important

Adequate On-Premise Signs = Successful Businesses

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On-Premise Signs are the Lowest Cost Form of Advertising

Form of AdvertisingCost per Thousand

Exposures

On-Premise Signage $0.30

Outdoor Advertising $1.65

Newspaper $3.47

Radio $5.70

Television $13.20

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How To Make the Signs=Business Argument

• Small businesses are most dependent on on-premise signage advertising

◦ Only form of advertising for many businesses

• 1997 UC-San Diego study measured benefits to business from on-premise signage

◦ New façade signage increased sales 2.5%-7.1%◦ New pole sign increased sales 4.9%-12.3%

(attributed by researchers to enhanced visibility)◦ Interior directional signs enhanced sales 4.0%-

12.4%

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Sign-Increased Sales Benefit Community

• Based on Pier 1 study in TN, inadequate signage cost: 30% of gross sales, 81% of profits, and …

• Total State Taxes $66,000 $46,200

• Total County Taxes $5,616$4,320

• Total City Taxes $29,613 $20,910

• Total Taxes Paid $101,229 $71,430

Inadequate signage can cost almost $30,000 in unrealized tax payments to government from just one retail store

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Use Value of Signs To Educate Potential Allies

• Local Businessmen◦ Compete with national retailers w/o help of economies

of scale or targeted media buying• Chamber of Commerce

◦ Vibrant business community attracts additional businesses; higher business tax collections lower personal taxes

• Bankers◦ Inadequate advertising lowers success rate of new

businesses• Commercial Realtors

◦ Lack of signage limits opportunities for reuse• Developers

◦ Multi-tenant developments need adequate signage allowance for all tenants

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Questions About All Sign Codes

• Can any business obtain a sign?

• Is the sign visible? (At night? With parked cars? Through landscaping?)

• With proper signage, can the business achieve its maximum economic potential?

• Does the sign (or system of signs) allow the business to communicate a message of temporary or short-term interest?

• Are illegal signs subject to citation and/or removal?

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Allowable Sign Area

• Size minimums should be determined as factor of driving environment (speed limit, lanes of traffic)

• Minimum size required for visibility and timely response◦ Simple Env. (25 mph, 2 lanes) 50 ft2

◦ Complex Env. (40 mph, town commercial area, multilane) 128 ft2

◦ Multi-lane Env. (40 mph; urban commercial area, multilane) 200 ft2

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How does Sign Code Interact with Landscaping and Parking Regulations?

• Clear line of sight is basis for many standards• Real-world situations often cause sign to be obscured• If tree cover, shrubbery, cars, or street furniture block

signs, accommodations need to be made• Industry-distributed model codes discourage monument

signs based on safety impacts of obscured signs

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