According to the International Sign Association’s (ISA’s) Sign Industry Quarterly Economic Report for the second quarter, the outlook for 2020 continues to decline, despite a sharp rebound in the economy earlier this summer. However, the recession was short-lived and will have lesser impact on 2021 than expected.
According to the International Sign Association’s (ISA’s) Sign Industry Quarterly Economic Report for the second quarter, the outlook for 2020 continues to decline, despite a sharp rebound in the economy earlier this summer.
The report shows the recession was short-lived and will have lesser impact on 2021 than expected.
Still, London, U.K.-based global information provider IHS Markit places a 20 per cent probability on a second wave of COVID-19, which is not factored into a potential recovery.
The report, which is sponsored by the National Association of Sign Supply Distributors (NASSD), assesses four segments of the industry: two supplier markets (printing and electrical/digital signage) and two end markets (electric/digital signage and architectural signage). It also forecasts commodities.
Some highlights of the report include:
- IHS Markit has revised its forecast for global growth in 2020 upward. World real gross domestic product (GDP) is now expected to contract 5.5 per cent this year, followed by a 4.4 per cent recovery in 2021.
- Pricing makes sheet steel a good purchase. Prices are past their bottom and will start to rebound over the second half of the year. As COVID-19 shutdowns ease, demand will partially revive, boosting sheet production and prices.
- In terms of lumber, IHS anticipates slow increases in 2020, with sizable pricing jumps in 2021.
- Business fixed investment is expected to fall 10.3 per cent this year before turning up to 1.3 per cent and 4.8 per cent growth in 2021 and 2022 respectively.
- Commercial construction spending is expected to plummet in 2020, falling 21.2 per cent, with a drop across nearly all components driving the decrease in overall activity.
