Most sectors of the sign and graphics industry are looking on par or slightly better for 2022, according to the Sign Industry Quarterly Economic Report, produced by IHS Markit for the International Sign Association.
The report covers the fourth quarter of 2021 and was prepared in December. 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.
- Gross domestic product is expected to grow at 4.1% for 2022, down slightly from the 5.7% growth in 2021. Inflation is expected to be 4.2% for 2022, thanks to a sharp jump in consumer prices.
- Steel prices are expected to drop as demand falls. The infrastructure bill will have a small impact on steel prices and demand in 2022 but will drive demand in 2023. Lumber prices also are expected to drop in the first quarter of 2022.
- All four sectors of the industry are expected to recover in 2022, though architectural signage will cool slightly due to a weakening construction market.
The report is free for ISA, ISA Affiliated Association and NASSD members. Non-members may purchase it for $1,000 per quarterly forecast. This research can be accessed at www.signs.org/quarterlyreport. IHS details more of the findings in a recorded webinar, available at www.signs.org/recorded-webinars.