A general "Future of the Industry" discussion

[SignManiac]

Lead, follow, or get out of the way is what I say. I've always tried to stay innovative and ahead of my competition. That meant spending money on new technology when everyone was telling my I was crazy.

About ten years ago I saw what was happening with the vinyl competition and realized it was heading for the price wars when everyone could afford a plotter. So I deliberately decided to specialize in the high end work that very few could do.

I adapted printing early on even though I got burned on some of the early technology but today everything is working as it should be. It just took a long time.

Not one to be complacent, I realized the sign business in general was going to get cut throat. So I decided it was time to diversify and have since gone into several other business. Those business need all of my sign services so I don't depend entirely on local commercial / retail business for my economic survival.

In other words, I don't have all my eggs in one basket anymore. If one company is slow the others can carry it and likewise for the rest of the companies.

The future of the sign industry is going to change but not significant enough in my lifetime to affect me. Still, I love all the new stuff and would never want to go back in time to when I started. My journey throughout my sign career has been evolutionary and a constant state of challenge. That's what keeps me in this business today.

Bring it on and lets see how fun the future can be!

 

[Fred Weiss]

Lead, follow, or get out of the way is what I say. I've always tried to stay innovative and ahead of my competition. That meant spending money on new technology when everyone was telling my I was crazy.

About ten years ago I saw what was happening with the vinyl competition and realized it was heading for the price wars when everyone could afford a plotter. So I deliberately decided to specialize in the high end work that very few could do.

I adapted printing early on even though I got burned on some of the early technology but today everything is working as it should be. It just took a long time.

Not one to be complacent, I realized the sign business in general was going to get cut throat. So I decided it was time to diversify and have since gone into several other business. Those business need all of my sign services so I don't depend entirely on local commercial / retail business for my economic survival.

In other words, I don't have all my eggs in one basket anymore. If one company is slow the others can carry it and likewise for the rest of the companies.

The future of the sign industry is going to change but not significant enough in my lifetime to affect me. Still, I love all the new stuff and would never want to go back in time to when I started. My journey throughout my sign career has been evolutionary and a constant state of challenge. That's what keeps me in this business today.

Bring it on and lets see how fun the future can be!

I totally agree with the diversification part of what you say. I have three distinct but related businesses. Sometimes they all do well ... lately they take turns. It would be good to point out that learning any technology well will keep you ahead of your competition and marketing is also something that figures in the same way.

The thing to avoid though is simply basing a business move on acquiring the technology and making it available to your clients. Anyone with the funds or credit lines can do that. Unless you are prepared to implement a complete move that includes the many components that go into achieving excellence, you will simply find yourself on the lower end of a declining market as time passes.

A number of years ago a friend in Miami asked my advice about getting a CNC router. I asked him why and he replied that the guy up the street from him was selling vinyls for what amounted to $10 an hour and recovery of costs on materials. I then asked him what made him think that the same guy wasn't laying awake at night dreaming about getting a CNC router so he could get $15 an hour cutting acrylic etc. and recovering his material costs. He waited several years before making the move in a more planned way and has done very well.

 

[Dave Drane]

When I went to the ISA at Vegas in '07 I checked out engraving as an alternative. I came back and bought a Roland EGX600 and let me tell you it is a much bigger learning curve than a vinyl cutter. I did this because I decided to do this because there are too many printers in my vicinity all undercutting each other and also wanting my business. I use the print broker in the city who give me geat prices, graet service and great prints from my own artwork, so why wouldn't I outsource.
BUT I got the big shock with the engraver... If you think the sign industry is bad with price undercutting then you should see what happens within the engraving industry, they are much worse trhan this trade.
I am within cooee of retirement age so I will not be investing in any further equipment. I have already cut back and the last couple of years I have been playing golf on Wednesday afternoons.

 

[royster13]

Sometimes by trying to do too much, puts you at a competitive disadvantage...Much of my local competition tries to be everything to everyone....And as such they have an array of equipment that does not get used much....Yet they still have to pay for it....

I on the other hand produce nothing and use a wide range of niche trade suppliers that do only a few things but do them very well....And most often at a price the is hard to beat...

I rarely run into an inventory issue as these types of suppliers have inventory to the ceiling....I rarely run into an equipment issue because most have multiple pieces of each machine they use.....I rarely run into a quality issues because these types of suppliers had done the same type of job over and over and they know what works....