Sign & Digital Graphics

WRAPS '17

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10 • WRAPS • 2 0 1 7 BUSINESS & SALES that reported last year. A number of shops (19%) report that 25 to 50 percent of their revenue comes from wraps, and the majority of shops (59%) report that up to 25 percent of their revenue comes from wraps. Personnel and Wages—About 40 percent of shops say they have one full-time installer, (down slightly from 43 percent in 2016)—while 20 percent have two on staff (up slightly from 18 percent last year); and 11 percent of shops have three or more. Outlook—Overall, survey results indicate a positive outlook for the coming year. A healthy majority of shops expect to see an increase or significant increase (79%) next year. Shops are fairly evenly split in their expectations about where those revenue- increases will come from. The largest group (46%) says increased sales will be found in partial wrap jobs (up from 35% last year), while fewer (27%) expect revenue increases from full vehicle wraps, and about 20 percent of shops expect increased sales in cut vinyl graphics. Challenges—Respondents say that the biggest challenges facing wrap shops are in the areas of pricing (22%), an inability to find skilled/experienced installers (20%), encroaching competition (16%) and meeting customer timelines (13%). This last is an increase over last year (8%) and reflects a shift in customer expectations with growing demand for quicker turnaround times. Ordering Habits—Most shops (58%) say they order wrap film more than 10 times a year, but high-volume shops can order multiple times a week. Respondents in the survey noted installation of all types of film with printed film topping the list (91%) followed by cut vinyl (90%). More than 60 percent of shops report being likely or very likely to try new media when it is first introduced, but more (69%) say they like to wait until the media has been on the market for a year. Most shops (86%) say they purchase at least some of their wrap tools and equipment from suppliers online. Dealer Preferences— When buying media from suppliers, shops reported that they most value suppliers that offer competitive pricing (80%), in-stock availability (68%) and good customer service (60%), all of which are up from last year. About 39 percent of shops value supplier location, reasonable shipping costs (42%), freshness of stock (30%) and supplier loyalty (42%). Revenues from Wraps Business is good! Survey results show- ing a large majority of shops (84%) had some type of an increase in revenue from wraps over 2016. Many shops (45%) say that the lion's share of their wraps rev- enue comes from full graphics and partial wrap jobs, with non-vehicle wrap work for commercial businesses and custom graphics following closely behind. The majority of the highest job vol- umes (more than 25 jobs per year) were centered on work for commercial busi- nesses, custom graphics and fleet work. Shops reporting 5 jobs or fewer were mainly concentrated in the areas of buses and trailers, personal use and marine. And of the 84 percent of shops that expect sales to increase, most (94%) agree that increases will come from full wraps, partial coverage wraps and cut vinyl applications. Work Done Although we did not ask for a total number of jobs turned around in our sur- vey, we thought it would be helpful to learn the volumes done for various types of jobs in 2016. Volumes of Jobs—The majority of the highest job volumes (more than 25 jobs per year) were centered on work for commercial businesses, custom graphics and fleet work. Shops reporting five jobs or fewer were mainly concentrated in the areas of buses and trailers, personal use and marine. Quote-to-Finish Times—Shops are becoming more efficient, it seems, as quote-to-finish times improved impres- sively. The majority of shops (63%) reported their quote-to-finish times of 10 days or less. That's a marked improve- ment over last year, when only 44 per- cent of shops reported hitting that mark. About 24 percent of shops reported aver- age turnaround times of 11-15 days (up from 14 percent last year), and only 12 percent of shops reported turnaround times of more than 16 days. In-house vs. Outsource— Most shops (91%) do in-house design and installa- of shops involved in wraps reported some type of increase in revenues in 2016. 84% Full vehicle wraps (at least 80% of the vehicle) Partial vehicle wraps (less than 80% of the vehicle) Cut vinyl graphics Expected Increases in 2017 from Types of Wraps 46% 27% 21%

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