All four sectors of the sign and graphics industry are looking slightly worse for 2021, but they are expected to rebound by 2022, according to the Sign Industry Quarterly Economic Report, produced by IHS Markit for the International Sign Association.
The report covers the third quarter of 2021 and was prepared in September. It is sponsored by the National Association of Sign Supply Distributors (NASSD). The report assesses four segments of the industry: two supplier markets (printing and electrical/digital signage) and two end markets (electric/digital signage and architectural signage). It also forecasts commodities.
- While the latest update hasn’t resulted in significant shifts in any of the indices, all sectors are showing a slightly worse outlook for 2021 with slight improvements for most sectors in 2022. The end markets for architectural signage will show the largest cool-down from 2021 as it returns to historical trend levels of growth.
- Inflation for 2021 will top 4.2%. As prices of food, energy, and motor vehicles retreat with recovering supplies, and with long-run inflation expectations anchored near the Federal Reserve’s long-term 2% objective, IHS expect the consumer price index inflation to subside to 2.4% in 2022.
- The steel market is turning, and prices will move downward from here. However, there are policy decisions that could slow the pace of decline.
- With supply side printing, the strong demand and the pandemic recovery remain the engine of growth behind this and next year’s strong industrial production. However, if supply chain issues remain troublesome through the first part of 2022, the outlook for growth may not be as strong as expected, but more extended in time.
The report is free for ISA, ISA Affiliated Association and NASSD members. Non-members may purchase it for $1,000 per quarterly forecast. IHS details more of the findings in a webinar at 2:00 p.m. (ET) Wednesday, October 20.
Photo courtesy of Mikael Blomkvist from Pexels.
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