Monday, 24 Oct 2016 15:16 GMT

Key Growth Sectors

As Autumn descends on 2016, and the year draws closer to its end, Harriet Gordon takes a look at the sectors and products that could be nurturing a growth spurt of the sign industry

Accelerating into Autumn

We have reached that turning point in the year, when the nights draw in earlier, the trees lose their leaves, and the chill in the air tells us Autumn is well and truly upon us. As we begin the final quarter of 2016, it is worth taking a moment to reflect on where this year has taken the industry, and consider the sectors and products that are proving most profitable for sign-makers.
 
Speaking to key players in the industry about their take on this topic, one of the most striking points is the sheer range and variety of responses. Each spokesperson sees key areas of growth within their own sector, testifying to the health of the industry as a whole.

Quality over quantity

Even in these uncertain, post-Brexit days, luxury products are still an important part of the British economy. Mathew Drake, business manager for commercial print at Roland DG, sees this market as a potential area of growth for sign-makers. He explains: “In any business, quality can be the difference between securing a sale and losing a customer to a competitor. Superior products demand premium prices, and with consumers of today more than happy to pay for quality assurance, the luxury market has become particularly lucrative.

Superior products demand premium prices, and with consumers of today more than happy to pay for quality assurance, the luxury market has become particularly lucrative”


“With Roland DG’s recently launched wide-format eco-solvent inkjet printer/cutters, the TrueVIS SG-300 and SG-540, there has never been a better time for signmakers to exploit this profitable market. Launched earlier this month, the new SG series is an extension of the popular Roland DG TrueVIS family and provides users with an unrivalled quality finish at an extremely affordable price.


 Matthew Drake from Roland DG claims the TrueVIS SG series provides users with an unrivalled quality finish at an affordable price


“Similar to its big brother, the TrueVIS VG series, the SG-300 and SG-540 deliver the vibrant colours and high-gloss finish required for high-impact graphics at an exceptional price point, sharing the same internal upgrades to ensure a high quality finish.”

With Roland DG, you get more than just a machine; Drake continues: “Users can take advantage of Roland DG’s Making Money with Print and Cut Guide, which offers advice and inspiration on the vast range of creative applications and exciting commercial opportunities that professionals can exploit in a bid to access new and profitable markets.


(Left and below) Roland DG customers can take advantage of the Making Money with Print and Cut Guide, which offers advice and inspiration on the range of applications and commercial opportunities in this market


 



“Whether you’re new to the industry or a well versed sign-maker, the Roland DG Academy presents attendees with an engaging learning environment equipped with modern training technologies to develop their skills and expertise across the print industry. The Roland DG Academy aims to educate professionals on the latest innovative applications that can inspire business growth into profitable areas such as vehicle wrap, signage and customization—invaluable skills that can add profit to any business.”

A sticking point

Alongside the market for luxury products, another area of the economy that depends on a population with disposable income is décor. Yet the market is bigger than you might think, spreading far wider than simply interior design. Ian Simister, sales director at Metamark, explains: “Our décor products play in many markets. So, by implication, do the printers and sign-makers who use them. I’ve seen exemplary work in restaurants. Hospitals like the output and so do customers in a domestic setting.

“One that’s really come at us out of the blue though is the education sector. Schools just love turning to what we’ve coined as ‘functional décor’.

Metamark’s brochure details all the materials in its DécorMark range
 
“That’s graphics applied to walls and other surfaces that play a role in the education process. It may be a time-line or a mural depicting something historical. It may be reference material or something pupils have created themselves. The products are easy to apply, durable and look sensational. Because the end-user can get exactly what they need, they come looking for things that just aren’t in the shops. Design matters. Material matters and the customer goes away very happy with the result.”

He continues: “Décor has a real momentum about it now. That isn’t going to go away. From our perspective I’d say that our DécorMark range of materials embodies a lot of profit potential for those who can find applications for it—and that’s not hard.”

Indeed, according to Simister, accessing the décor market could not be simpler: “All you have to do is contact Metamark and ask for some DécorMark samples. We’ll be happy to send you some. The great news continues. You need nothing more to access this thriving new market than the inkjet printers you’re already using.

“Take some samples you’ve printed around to a few schools or restaurants locally. Prepare yourself for a good response. People just love the media and its creative potential. Why not create a mural for your kids’ rooms themed on a favourite computer game, Minecraft maybe? You’ll sell ten more like it when word gets out and it may even go viral on you. The key thing to remember is any wall that’s holding a roof up is a potential application venue. We think this market is going to grow and grow. Work with us and we’ll help you secure a share.”

The key thing to remember is any wall that’s holding a roof up is a potential application venue ”


Staying on the topic of adhesives, another spokesperson to veer away from machinery and stick to a core product is Linda Barrowclough, operations director at Innova Solutions. She highlights the firm’s high strength bonding tapes as a potentially-profit generating solution for sign-makers.

She explains: “Our Nova Bond tapes have always been one of our flagship ranges and recent developments in new sign-making substrates has certainly made them a key growth area for us over the past year and we’ve expanded our offering to meet the demand.

“Our customers are becoming more ambitious with their fabrication techniques, choosing high strength bonding tapes over mechanical fixings, primarily due to their speed and ease of use, enhanced finished aesthetics, and ability to bond thinner, lighter materials. The need for bond strength and durability are key for the modern sign-maker; they can’t afford to have a product that lets them down and our tapes are designed to withstand the harshest of environments.”

Speaking of ‘environments’, no assessment of the state of the industry would be complete without a reference to sustainability. This is one key box that Nova Bond ticks, as Barrowclough explains: “As an industry we’re becoming more environmentally aware and this trend has led to our partners looking for products that adhere to that principle; our Nova Bond tapes are solvent-free and very eco-friendly.

“It’s the problems our customers encounter that lead us to innovate and our insistence to remain at the cutting-edge in adhesive technology has allowed us to retain our long-term partners and attract new customers—so much so that we are currently yielding 20 percent growth.”

Cut above the rest

When looking for key drivers of profits, there are of course many in the industry who would argue you need look no further than good, old-fashioned (although very up-to-date) hardware. Julian Sage, managing director of Complete CNC Solutions, is of this school of thought.

He explains: “We think, and our experience is bearing the thought out, that sign-makers enabled with the right manufacturing hardware are heading outward and exploring new market opportunities. We sell a number of digital cutters and they’ve been acquired by companies to add value to the print production they undertake. Those same machines though, thinking of our Unico TT in particular, are capable of outperforming many dedicated routers.


Julian Sage of Complete CNC Solutions states that print finishing is just one of the Unico TT’s many talents



“Sign-makers have been quick to dig into the additional capability and start participating in a wide market for routed output too. Many, who were once wholly dedicated to print, are now supplying routed signs and PoS materials too and we’re told that in extending the services they offer they have bought new customers aboard. That’s pretty gratifying to know and it drives a very rapid return on investment. I’m also told that our Unico TT helps its users get much more from existing print production assets.”

Indeed, Sage suggests that many firms are using these machines to move away from just wide-format print back into these more traditional signage markets. He continues: “PoS production seems to be a recurring theme. Many companies who were dedicated to print are now pushing into the plastic fabrication markets. They’re making display fixtures and other fabricated assemblies that represents work that would have gone elsewhere.

“Many say they’re taking control of their businesses. The impact is much wider of course. With one of these amazing machines in house you can simply do more with the print you produce. That opens doors with all sorts of companies you might not have talked to before and brings new opportunities to the business. The means to do something inventive and new is a powerful thing. These amazing Unico TT digital cutters support that idea. If you can conceive it, or, more to the point, if your customers want it—you can say yes with a TT in the workshop.”

Dose of digital

From a sector as traditional as PoS, the focus now shifts to a newer, but no less central area of the industry: digital signage. John Davies, managing director of Fastsigns UK argues that dynamic digital content is the most exciting development currently in the signage industry, continuing: “It has the potential to be very profitable. This kind of digital content can change regularly and reflect real-time information, meaning it can display a lot more information than static signage.
 
“The transport industry has been an early adopter of this technology—it can be seen in airports and train stations, to update timetables and arrivals. Not only can this kind of content be played on digital signage displays, it can cross over to any type of media that is displayed on smartphones, billboards and soon, augmented reality solutions.

“The opportunity presented to the sign industry is to convert the majority of customers who currently use static signage solutions, over to dynamic digital solutions with recurring content.

“This may require some effort on our part to educate them on the benefits of digital signage, as it is relatively new to the industry and most sectors have been using static solutions for decades.”

He continues: “Moving to digital signage and content will require additional training for staff on the new technology.

This is no different to the move from cut vinyl to digitally printed graphics, which took the industry a few years to transition. It will take our own and other sectors a few years again to fully capitalise on this new technology and the opportunities it creates. Signage businesses in particular must ensure they are recruiting and training their staff with the necessary skills.

“Fortunately, if you have the basic skills already for creating signage—design skills, copywriting, creativity—it is just a matter of learning a different method for delivering the signage solution your client wants, and a little bit of investment in equipment. There is no reason why digital signage and content will disadvantage existing sign-makers, if they are proactively looking to get involved.

O Factoid: A study in the Journal of Aging Research found that babies born during the Autumn months are more likely to live to 100 than those born during the rest of the year. O


“A good business is one that takes on new challenges, adapts to trends and evolves with the demands and changing attitudes of their consumers. Thankfully, this is something all our franchises have been doing for over 35 years.”

Finishing on this final note of confidence, it seems clear that the opportunities for growth in the sign industry are abundant, and are coming from a variety of sectors. Yet the advice from our experts is consistent across the spectrum—complacency is dangerous. Stay alert, stay proactive, and never stop looking for new ways to grow and generate profits.



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