Forecasts are showing the sign and graphics industries are expected to rebound by 2022, according to the Sign Industry Quarterly Economic Report, produced by Information Handling Services (IHS) Market for the International Sign Association.
Sponsored by the National Association of Sign Supply Distributors (NASSD), the report covers the third quarter of 2021 and forecasts commodities. The report also assesses four segments of the industry: two supplier markets (printer and electrical/digital signage) and two end markets (electric/digital signage and architectural signage).
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 report said the end markets for architectural signage will show the largest cooldown from 2021 as it returns to historical trend levels of growth.
The report also states inflation for 2021 will top 4.2 per cent. As prices for food, energy, and motor vehicles retreat with recovering supplies, and with long-run inflation expectations anchored near the Federal Reserve’s long-term two-per-cent objective, IHS expects the consumer price index inflation to subside to 2.4 per cent in 2022.
The report adds that the steel market is turning, and prices will move downward from here. However, there are policy decisions that could slow the pace of decline.
In terms of 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, the report states 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.