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CAS/Commercial 1997 State of the Industry Report

Signs of the Times magazine’s second annual report

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From 1996 to 1997, our data shows that the average profit margin dropped from 18.8% to 16.5%, and average sales per full-time employee dipped from $64,000 to $61,800.

However, the best news is an average increase in 1997 sales volume of 18.3% (versus a prediction of 25.3%) with projections of an average increase of 19% in the current year. Based on this data, we estimate the CAS/commercial-sign industry grew 13% from $3.2 billion in 1996 to $3.6 billion in 1997. The data was gathered from companies that listed commercial signs as their primary business.

What follows are some highlights from Signs of the Times magazine’s Commercial SOI report. You can find the complete article in the August issue, which can be purchased here.

Preview:

Distribution of CAS/Commercial Respondents by Sales-Volume Classification

This table shows the distribution of respondents by sales volume. The average size of the responding shop this year is much less than last year.

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Average Sales Per Respondent Independents and Franchisees/Licensees

The average responding franchisee sign company garnered nearly $100,000 more in annual sales than the average independent sign company. The median for franchises ($205,000) is more than double that of the independents ($99,000). The independents tend to go to greater extremes.

Note that among the $500,000 sign companies, the average independent is 50% bigger than the average franchise ($1.23 million versus $825,000). The average independent with less than $100,000 in sales, however, is smaller than the average franchise in both of those sales-volume categories.

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