isa wide format print & media mix survey part one - … research report isa wide format print...
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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
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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 don’t 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%
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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
don’t have to tie up their cash in inventory.
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Own Wide Format Digital Printers vs. Outsource
Many signage and graphics producers are smart about how they serve their customers. They recognize
that they don’t 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 don’t own any wide format digital printers, outsourcing all of their wide format print
production, while only 33% of the shops surveyed reported that they don’t outsource any work.
Do you have your own wide format digital printers or do you outsource wide format digital work?
We have our own, don’t outsource
33%
We have our own printers, still
outsource sometimes
46%
We don’t have our own printers,
we outsource wide format print
production21%
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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
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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
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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 respondents have solvent inkjet, which represents a significant
opportunity for turnover to more environmentally-friendly technologies. While it is clear many shops are
shifting some of their print volume away from solvent, solvent offers very low-cost production for some
outdoor advertising applications for which print buyers tend to be price-oriented.
Another notable finding is that 14% of the shops surveyed have Latex printers. This shows that the
adoption of Latex is going well in the signage and graphics market as a replacement for aqueous, eco-
solvent and solvent inkjet printers.
Finally, it is interesting to see the adoption of different configurations of UV-curable inkjet printers. When
combined, 34% of the shops reported that they have some type of UV-curable inkjet printer. Hybrid
(flatbeds with roll option usually) are the most common at 15% while fewer shops have pure flatbeds
(11.8%) and UV roll-to-roll systems (7.6%).
Which of the following types of wide format digital printers do you have?
18.8%
4.1%
5.3%
7.6%
11.8%
14.1%
15.3%
15.3%
25.3%
52.9%
0% 20% 40% 60%
Other
Dye-sublimation
Analog processes
UV-curable roll-to-roll
UV-curable flatbed
Latex inkjet
Aqueous Inkjet
UV-curable hybrid
Solvent-based inkjet
Eco-solvent inkjet
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Technology Shift
Companies that are investing in higher-end wide format digital printing technologies typically do so in
order to be more competitive both in terms of running costs and in the types of applications they are able
to produce. The survey respondents reported that they expect to make subtle shifts into various
technologies. The expectations are that there would be slight growth in eco-solvent, solvent, UV and
aqueous production. There is also a notable increase in the dye-sub market. Interestingly, these users
report a small shift away from Latex. These are fairly small changes within a 2 year time frame, but they
indicate the directions that the wide format signage and graphics producers may be taking.
Thinking just about your wide format digital printing business, what percentage is produced using the following methods now, and
what percentage do you expect to be produced using these methods in two years?
18.9%
22.9%
28.4%
55.8%
58.6%
59.1%
74.2%
17.6%
26.0%
30.8%
54.0%
59.4%
61.7%
74.6%
0% 20% 40% 60% 80%
Analog print processes
Dye-sub Inkjet
Aqueous Inkjet
Latex inkjet
UV-curable Inkjet
Solvent Inkjet
Eco-solvent Inkjet
in 2 Years Now
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Applications
An important consideration when it comes to technology choice is the mix of applications that the shop
produces. Banners and signs were the most common applications for wide format digital printers,
followed by decals, vehicle graphics, window graphics and backlit displays. One finding that emphasizes
the strength of digital printing technology is the diversity of applications. An indicator of this is that more
than 50% of shops report that they regularly output the top nine applications, including more specialized
applications such as vehicle wraps and wall coverings/wall murals.
Which applications do you regularly output on your digital wide format printers? (top 12)
30.0%
44.7%
47.1%
50.6%
50.6%
52.9%
60.0%
65.9%
70.6%
72.9%
83.5%
84.7%
0% 20% 40% 60% 80% 100%
Photography
Floor graphics
POP displays/signs
Wall coverings/wall murals
Vehicle wraps
Posters
Backlit displays
Window Graphics
Vehicle graphics
Decals
Signs
Banners
Which applications do you regularly output on your digital wide format printers? (next 11)
11.2%
3.5%
8.2%
9.4%
9.4%
10.6%
14.7%
17.1%
19.4%
19.4%
22.9%
0% 20% 40% 60% 80% 100%
Other
Vehicle curtains
Packaging samples
Flags
Proofing/composites
Textiles
Industrial Products
Billboards
Fine art work
Maps
Presentations
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Most Important Applications in Digital Wide Format Printing
Respondents were also asked to indicate which applications make up the majority of their digital wide
format printing. As one would expect among a group largely comprised of sign shops, signs are the top
application among these establishments followed by banners. Decals, vehicle graphics, and vehicle
wraps are also among the top five applications.
This application mix reconciles with the mix of substrates used as readers will see in the second report
highlighting these research findings. The digital print media mix reported by the respondents includes a
very high percentage of vinyl.
Which applications you produce are most important or account for the majority of your digital wide format printing?
7.1%
15.3%
15.9%
16.5%
17.1%
24.7%
29.4%
31.2%
35.3%
56.5%
64.1%
0% 20% 40% 60% 80%
Billboards
POP displays/signs
Posters
Wall coverings/wall murals
Window Graphics
Backlit displays
Vehicle wraps
Vehicle graphics
Decals
Banners
Signs
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Application Trends
Perhaps just as important as what applications they commonly produce today and what drives the
majority of wide format digital print volume are the trends among wide format applications. Respondents
were asked which applications are growing and which are declining as a percentage of their total wide
format digital print volume, and there are several important results within these findings.
First is that 75% of the companies that report that they produce signs report that signs are a growing wide
format digital print application. InfoTrends believes this is a result of the desire to change over messages
more often in order to drive sales activity in certain products and services. Similarly, wall coverings/wall
murals were rated as a growth application by almost 70% of the respondents. InfoTrends believes this is
a result of the desire to change over messaging, but the wall covering/wall mural market is also being
fueled by the emergence of Latex as a wide format printing technology.
One area that piques our interest is textiles, because this is an area that InfoTrends believes is a growth
market, and while over 60% of respondents report it is a growing application, almost 17% report that it is
in decline. It could be that there are new market entries in the textile business that are impacting smaller
suppliers.
Finally, it is important to recognize that there isn’t even one application among all listed that the
respondents report are declining more than growing. This reinforces the idea that wide format digital
printing is a growth market overall.
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Which of these applications are growing and which are declining as a percentage of your wide format printing business?
58%
58%
59%
60%
60%
61%
69%
70%
75%
83%
33%
33%
30%
35%
30%
22%
22%
22%
22%
10%
9%
11%
5%
10%
17%
9%
8%
3%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Banners
Decals
POP displays/signs
Window Graphics
Vehicle graphics
Textiles
Vehicle wraps
Wall coverings/wall murals
Signs
Vehicle curtains
Growing
No change
Declining
25%
32%
36%
37%
38%
42%
43%
43%
45%
46%
49%
53%
53%
56%
48%
51%
63%
44%
39%
43%
33%
38%
30%
38%
36%
33%
19%
20%
13%
19%
18%
14%
24%
17%
24%
13%
11%
13%
0% 20% 40% 60% 80% 100%
Proofing/composites
Industrial Products
Presentations
Other
Flags
Maps
Packaging samples
Photography
Billboards
Fine art work
Floor graphics
Backlit displays
Posters
Growing
No change
Declining
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Wide Format Print Media Brands
The wide format digital print business is fragmented in the types of suppliers, the hardware they use to
produce the wide variety of applications they produce, and the types of media that are need to print on.
For this reason there are many wide format print media brands that are used. The survey presented more
than 30 brands of wide format print media and asked the respondents to indicate if they use any of these
brands. The responses indicates that while some of the top pressure-sensitive suppliers come out the
most, the respondents reported that they use at least some of all of those 30 different media brands, and
even then there was a significant percentage (10.6%) that reported they use “other” brands.
Please indicate which media brands you use – 15 brands most cited
10.6%
12.4%
12.9%
14.1%
14.7%
15.9%
17.6%
21.2%
21.8%
24.1%
25.3%
41.2%
41.8%
54.7%
84.7%
0% 20% 40% 60% 80% 100%
Epson
Neschen
General Formulations
Sihl
Intelicoat/Magic Inkjet
Clear Focus
Cooley
Mactac
Ultraflex
Roland
HP
Orafol (aka Oracal)
Arlon
Avery
3M
Please indicate which media brands you use – next 15 brands most cited
4.1%
4.1%
4.1%
5.9%
5.9%
6.5%
6.5%
7.6%
8.2%
8.2%
8.8%
9.4%
10.0%
10.6%
10.6%
0% 20% 40% 60% 80% 100%
Kapco
Value Vinyls
G-Floor Graphics
Fisher Textiles
Kodak
Drytac
Catalina
Ritrama
Universal Products
Hexis
Bright Line
FLEXcon
FDC
LG
LexJet
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Important Factors in Deciding Wide Format Digital Print Media Brands
Wide format print media is an important part of professionally produced signage and graphics. The wide
format digital print media brands that signage and graphics shops select to use are often part of the
marketing message from these companies. Most shops select wide format print media based on very
practical characteristics such as durability of finished graphic, print quality, and cost. Those three
characteristics essentially equal value in signage and graphics parlance, meaning that shops want to be
sure their customers are happy with the performance and appearance of the graphics they produce and
they want to pay as little for that performance as they have to.
Other characteristics of importance also relate to value that can be conveyed by the manufacturers and
their distribution channel, from warranty to availability. Yet it is interesting to note that “previous
experience with the brand” is rated exactly as important as availability, which suggests that users are
willing to replace “resident” brands for something that is more easily available.
How important are the following factors in deciding which brands of wide format digital print media you use?
3.2
3.3
3.4
3.5
3.6
3.8
3.8
3.9
4.0
4.2
4.4
1 2 3 4 5
Least hazardous to the environment
Supplier offers ICC profiles
Fastest drying time
Brand
Least roll-to-roll variability
Fastest availability
Previous experience with the brand
Best warranty
Best price for acceptable quality
Final piece has the best print quality
Durability of finished graphic
Very importantNot important
The other finding that is very interesting is the lack of importance given to the idea of using print media
products that are least hazardous to the environment. InfoTrends believes that this is a reflection of the
size of the average establishment among the respondents more than anything else. In other surveys and
research studies, InfoTrends has found that very large printing establishments in the wide format
business are typically much more concerned with environmental issues because: 1) they are more likely
to be supporting large customers who have their own environmental practices when it comes to signage
and graphics procurement, and 2) they are acutely aware of the cost of disposal of non-recyclable
materials.
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InfoTrends’ Opinion
The data supplied in this research study reinforces InfoTrends belief that the signage and graphics
market is a large and dynamic business. The suppliers to the signage and graphics market are
challenged to continue to develop products that expand the business of signage and graphics producers
while navigating a streamlined supply chain to maintain profits. Signage and graphics producers have a
wide range of applications they are routinely asked to produce that leverages their expertise in the sign
business as well as the flexibility of their production capabilities. The shops that succeed will be the shops
that continue to invest in and develop their capabilities to not just produce these applications, but develop
new business through new and profitable channels.
The second report based on this research will highlight annual spending on print media, the outlook for
spending, and the media mix of wide format digital signage and graphics producers.
This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our
interpretation and analysis of information generally available to the public or released by responsible
individuals in the subject companies. We believe that the sources of information on which our material is
based are reliable and we have applied our best professional judgment to the data obtained.
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