2003’s Electric State of the Industry Report: A Half-full Glass

This year’s Electric State of the Industry (SOI) report, our 21st, represents one of the most mixed-bag compendiums of results in more than a decade. The roller-coaster recovery has seemingly been replicated within the sign industry. Whereas 2002 mostly represented many "worsts," 2003 was fraught with positive, but small, trend reversals, but other drawbacks.

Even within individual tables, positive and negative economic news cohabitates. Based on this inconclusive data, we estimate that the architectural/electric-sign industry remained flat in 2003, replicating 2002’s $5.1 billion. If we’re forced to be more specific, we would say a slight uptick occurred.

The positive statistics outweigh the negative ones. Recovery seems to have occurred during the fourth quarter, perhaps too late to noticeably affect an entire year. This year’s survey includes the second year of asking electronic-digital signage (EDS) questions (Tables 13, 13a and 13b). These new technologies don’t appear to have attracted much interest. Increasing interest in some areas is countered by less interest in others.

Also of note, we received fewer responses from quantity-sign manufacturers. For many of last year’s tables, we had 19 responses; this year, it’s eight. By definition, we ask companies to classify themselves as "custom-electric" or "quantity-sign" (if this comprises more than 30% of their work). This year, 75 companies didn’t classify themselves as either, which presumably means that they do extensive installation/maintenance and/or architectural signage.

However, our respondents’ average sales volume of $3.3 million is the third highest ever, suggesting a predominance of large-company response. Undoubtedly, consolidation has dwindled the numbers of quantity-sign companies, but any comparisons between 2002 and 2003 will be only partially valid. However, most results from responding companies are positive.

To view a full 2003 Electric State of the Industry Report (14 pages), purchase a back issue of Signs of the Times, July 2003 magazine here. Preview:

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Table 1a: Three-Year Comparison of Sales per Company (Sales Volume in 000)
Sales Volume	2001	2002	2003	Change 2001-03
$2,500,000 or more	$11,609	$8,424	$13,199	13.7%
$1,000,000-$2,499,999	$1,583	$1,522	$1,488	-6.0%
$250,000-$999,999	$548	$587	$569	3.8%
Less than $250,000	$106	$116	$196	84.9%
Overall Average	$3,060	$2,842	$3,348	9.4%

 

Table 13a: EDS Actively Marketed or Received Inquiries
	2002	2003
Yes, Have Actively Marketed	16.1%	20.8%
Yes, Have Received Inquiries	28.9%	17.7%
No	55.0%	59.3%
No Response	0.0%	2.2%
Total	100.0%	100.0%