Thinking about starting a sign business, but unsure about the state of the industry? Today’s post reviews economic reports for Q2 2020 and beyond to highlight the resilient value of our sign opportunity.
“Rubber Band Recession” Promises Strong Recovery In 2021
The worst is behind us.
That was the main takeaway from the Sign Industry Quarterly Economic Report for Q2 of 2020, so much so that it appeared in the report’s headline.
Though the outlook for 2020 continues to decline, these effects were moderated by a sharp rebound in the economy earlier this summer, and the future looks bright.
“The report shows that the recession was short-lived and will have less of an impact on 2021 than expected,” writes the ISA.
With the market contracting then expanding, we can think of this recession in terms of rubber band physics, where we need to pull back the band in order to snap forward. Current estimates figure a 4.4% recovery in 2021, but these are admittedly conservative. According to other industry reports, the market is expected to reach a value of USD 46.85 billion by 2025, at a CAGR of 0.31%, during the forecast period (2020-2025).
Second Wave Of COVID-19 Unlikely To Harm Sign Industry
Ever since the state of emergency began, the International Sign Association fought for the sign industry’s “essential business” designation, and on April 17th those efforts paid off. According to the U.S. Department of Homeland Security’s Cybersecurity & Infrastructure Agency (CISA), all sign companies now qualify as part of America’s “critical infrastructure,” which means sign shops can continue to operate as long as they follow all pandemic health protocols.
Thus, unlike most others, the sign industry remained relatively stable throughout the worst of the “first wave” of the COVID-19 pandemic—and some owners even saw net demand increases, as businesses across the country turned to local sign shops for COVID-19 signage and personal protective equipment (PPE).
Now with the threat of the second wave looming, some owners are wondering what to expect in the coming months. IHS Markit puts a 20% probability on a second wave of COVID-19, which is not factored into the recovery forecast sponsored by the National Association of Sign Supply Distributors. However, it is unlikely that a second wave would negatively affect our industry—indeed, if recent history tells us anything, it’s that sign demand spikes in a positive correlation with the intensity of COVID-19 infection and lockdown restrictions.
How To Discover More Free Sign Industry Resources And Get A Free Quote?
Continue your assessment by visiting the Signworld Business Alliance website to browse our free sign industry resources, or call 888-765-7446 to speak directly with a Signworld representative. We will be happy to answer any questions you may have about our industry, and we can also offer you a free quote on what it would cost to launch your very own sign business in 2020.