Specialty Graphic Imaging Association
	Executive Summary July 2009

Let the Other Guys Have the Recession

It’s time to shake off those recession doldrums and focus on the growing business opportunities in the imaging marketplace. The specialty graphics community has more going for it than any other printer sector. For example, the litho sector is over capacity, commoditized and serving a shrinking market. (I read about it on my Kindle.) Sign makers are scrambling to get a piece of the specialty graphics market because the small-sign business also is commoditized and sales are quickly moving from walk-in storefronts to the Internet. The outdoor, large-sign market is saturated and highly competitive. And major sign companies are trying to diversify.

But, while the marketplace for lithographic printing is shrinking and sign-makers are looking for new opportunities, the marketplace for specialty graphics is growing. Consumers are making buying decisions closer to the product. A recent McKinsey Quarterly Survey showed that 40% of consumers change their minds at the point-of-sale due to something they see, learn or experience. Even online retailers are seeing the value of strong point-of-sale product recognition in brick and mortar retail stores as consumers build brand awareness.

The entertainment value associated with retail environments is also on the upswing as retailers compete for consumer dollars. Stores need to be fresh, informative and reflect customer interests.

Margins are certainly tighter since the recession hit, but specialty graphics producers have avoided the commoditization trap mainly because of emerging technology. The continual flow of new and exciting capabilities has helped SGIA members increase their value to customers instead of needing to compete on price alone. And while the recession has slowed equipment sales, manufacturers have not slowed down R&D efforts. We’ll see lots of new technology at the 2009 SGIA Expo.

Specialty graphic producers are a great fit for today’s changing marketplace. The SGIA community is on a positive track for future success, but it will be a fast and ever-evolving ride. I encourage you to stay informed and hold your position on the leading edge as new opportunities will come in fast and go out just as quick.

See you at the 2009 SGIA Expo!