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Specialty
Graphic Imaging Association
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Executive Summary
December 2009 |
Exclusive SGIA Survey Results Show Imagers Battling to Succeed in a Changing Marketplace
The just-completed Product Specialties Survey addresses the specific interest of graphic producers and garment decorators. The complete report will be available in January, but here ’s my take on the data.
Graphic Producers
Graphic producers weren’t quite able to meet their overall growth predictions for 2009, but the majority of respondents still ended the year with increased profitability. Sales growth during 2009 was predicted by 65.8 percent, however, 53.4 percent actually grew their businesses during the year. Meanwhile, 19.9 percent expected a decline in business, but 31.2 percent actually experienced it.
The survey results illustrate the consolidation taking place in today’s competitive marketplace. For instance: 8 percent of respondents expected substantial drop in sales, but twice that percentage reported major losses at year’s end.
Graphics producers, especially smaller companies, expect to see sales growth in banners, vehicle graphics and increased support for retailers. I am concerned about the profitability of some of these products. Continued commoditization of banner, small signs and vehicle wraps will make it tougher for small companies that specialize in these products to be profitable.
Garment Decorators
A majority (67.6 percent) of garment decorators expected at least a little growth in 2009; 65.6 percent saw it happen. And 12.8 percent expected to lose ground during the year; unfortunately 18.6 percent ended the year with negative growth. A flat 2009 was anticipated by 14 percent. This was an accurate prediction as 13 percent actually reached year-end with no change in sales volume.
More than half of respondents (61.2 percent) expected growth in the T-shirt market. An equal percentage of respondents are expanding to provide other products.
Consolidation, emerging technology, online sales and customer need are all major factors affecting the garment decoration community today. There is great opportunity for those companies that are taking the lead in the next generation of garment decoration.
Most SGIA members I talk with are optimistic about the coming year. Most are diversifying their business models and looking at new opportunities. |
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