Recession-Resistant Products in the Sign Industry
After the 2008 recession, the U.S. economy made a comeback over the decade that followed. The signage industry bounced back much faster and stronger than other sectors. Just a few years later, sign companies were experiencing growth and bringing in a bigger percentage of profit margins. One of the reasons sign businesses took off after the recession is because these companies provide products and services to a diverse and primarily B2B client base.
Recessions usually affect all types of businesses; however, certain industries tend to continue to perform well when there is an economic slowdown. Experts agree there are no recession-proof businesses, but there are recession-resistant businesses. Primary necessity products and consumer staples such as toothpaste or soap tend to perform well during a recession. Therefore, grocery stores and discount retailers see steady demand. Other industries that hold up well during a downturn are healthcare, cosmetics, alcoholic beverages, and funerary services. There isn’t anything that guarantees these companies will stay in business; however, it’s a good idea to have these companies as part of your client portfolio.
While most signage companies offer a variety of products, they must expand those offerings in times of recession to adapt to changing market demands. It’s also essential they evaluate their clients to identify which businesses are likely to have an increased need for their offerings.
Companies like Image360 have always provided a wide selection of outdoor and indoor signage for businesses; however, during this pandemic, they realized the needs of their existing clients had shifted. In order to help their clients adapt to new health and safety regulations, they adapted their offerings. On their website, you can find a new section with COVID-19 specific resources such as back to business signage, social distancing graphics, and protective wear and panels.
The economic slowdown caused by the COVID-19 pandemic has business owners seeking solutions to stay active. Based on our experience overcoming the 2008 recession, we identified the following signage products that could be considered recession-resistant:
A-Frames, Easel Signs, & Sandwich Boards: These signs tend to be small-ticket items, but they perform well because they are used by many different industries, from retail to healthcare providers. They are easy-to-read signage solutions that can be easily transported, stored, and reutilized. These signs are suitable for indoor and outdoor areas, which makes them usable year-round. Other industries taking advantage of this type of signage are personal service locations such as hair salons and nail places. The unique challenges they’ve had to face to reopen and stay open have required them to utilize flexible outdoor signage solutions such as A-frame signage to highlight face mask requirements and admittance policies.
Retractable Banners, Pop-Up Banners, and Stands: These banners are very popular at grocery stores and retail businesses. They are ideal for temporary and seasonal offerings. In times of recession, they are an affordable and effective solution to promote and feature items in high demand. Another industry taking advantage of retractable banners is manufacturing. To be able to continue with their operations, they’ve had to make quick changes at their locations. The flexibility of portable banners has helped them adapt and keep their employees safe and informed.
Vehicle Logo Graphics & Lettering: Vehicle graphics continue to be one of the easiest ways to generate a large number of impressions for a minimal cost. The fast-food industry and restaurants rely heavily on this type of advertising, and it’s the ideal solution for B2C companies looking to expand their brand awareness.
Safety Signs: Amid the current crisis, the demand for health and safety signs has significantly increased. Signage companies have even started to diversify and expand their safety offerings to help businesses promote awareness and keep their staff and visitors safe. To maintain a safe environment, different companies have implemented at their corporate offices features such as temperature checkpoints, new desk configurations, social distancing signage, and wash hands reminders.
Fabric & Vinyl Outdoor Banners: Businesses in every industry use banners. These signs use resistant materials, which makes them perfect for withstanding varying outdoor weather conditions. Since many businesses have had to make changes to adapt to new regulations and changing schedules, outdoor banners have become the ideal solution to inform customers and passersby. Many companies in the food service industry, including grocery stores, are using banners to announce reopening, social distancing policies, or special sales.
There are many ways sign companies help support other businesses in times of economic downturn. Keeping this role in mind can help signage companies make plans in these uncertain times. We are always looking to encourage our franchisees to stay positive and find ways to use their strong design capabilities and signage offerings to support their clients. Signage plays a crucial role in businesses of all sizes and has a direct impact on driving sales and promoting brands. In a time when everyone is worried about the future of the economy, there are many reasons to stay hopeful and find ways in which sign and graphics businesses can contribute and help promote local businesses.