U.S. PSA Sign Vinyl Purchases Exceeds $550 Million in 2004 - Market Grows While Larger Shops Move Quicker to Digital Vinyl Usage
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SGIA Expo 2012 - Las Vegas October 18-20, 2012



PRESS RELEASE

FOR IMMEDIATE RELEASE
November 2004

U.S. PSA Sign Vinyl Purchases Exceeds $550 Million in 2004 - Market Grows While Larger Shops Move Quicker to Digital Vinyl Usage

Boston, MA - Annual purchases of PSA (pressure sensitive adhesive) sign vinyl will reach $555 million in the U.S. in 2004, according to a Web Consulting Inc. market study. According to the study, the overall U.S. market for PSA sign vinyl continues to grow despite a growing trend among larger shops to switch from traditional PSA sign vinyl to PSA inkjet vinyl. The study also reveals that both large screen printers (screen printers with annual sales over $1 million) and commercial sign shops appear to be using less PSA sign vinyl in 2004 than in 2002 (the last year this U.S. market study was conducted).

Web Consulting Inc., the Boston-based U.S. office of the global digital printing and imaging consultancy Web Consulting is pleased to announce the release of the 2004 U.S. PSA Vinyl Trends Market Report. This study, last published by Vector Marketing in 2002, is designed to provide an in-depth look at the U.S. PSA sign vinyl market including vinyl purchasing trends, market share and PSA brand performance ratings. For the 2004 edition of this report, Web Consulting added detailed information about the usage of a newer category of PSA vinyl – namely PSA inkjet vinyl – providing detailed analysis on the effects PSA inkjet vinyl usage is having on PSA sign vinyl usage. Web Consulting uses the following definitions for the two types of PSA vinyl:

  • PSA Sign Vinyl, also known as pressure sensitive adhesive vinyl (PSA) or traditional sign vinyl or cut vinyl, is a type of vinyl used as a decoration method in computer-aided sign making or as a substrate for screen printed signs, graphics and banners.
  • PSA Inkjet Vinyl is a type of PSA vinyl used in inkjet or digital printing. It is most often a white vinyl treated (coated or uncoated) for inkjet printer usage on aqueous, eco-solvent or solvent printers.

The usage trend away from PSA sign vinyl appears to be occurring more rapidly in larger sign shops and screen printers (defined as shops with annual sales over $1 million) than in smaller sign shops and screen printers. According to the study, the usage of traditional PSA sign vinyl incorporated in jobs of large screen printers has dropped from 45% in 2002 to 32% in 2004. In the commercial sign shop segment, the percentage of jobs that incorporate PSA sign vinyl decreased from 57% in 2002 to 48% in 2004 according to the study.

According to Michael Flippin, Vice President of Web Consulting Inc., “Although both large screen printers and commercial sign shops use a wide variety of substrates for sign and graphics fabrication, the sharp decrease noted in PSA sign vinyl usage may indicate that both markets are moving away from their traditional sign making methods and toward other imaging technologies – like inkjet printing. Today, it appears the heaviest usage of PSA sign vinyl remains characteristic of smaller, more traditionally-focused sign making shops.”

The report also finds that commercial sign shops and large screen printers are more likely to have inkjet capabilities than other shops categories detailed in the study. Specifically, 44% of commercial sign shops and 52% of large screen printers reported the capability of printing inkjet PSA vinyl graphics in-house. “Larger companies with more financial strength are able to more easily purchase inkjet printers”, said Lisa Onesto, Senior Consultant of Web Consulting Inc. “We expect the incidence rate to rise in other segments as the prices of many wide format inkjet printers continue to decrease and as new emerging technologies such as eco-solvent and UV-Curable continue to advance. Thus, we would also expect to see an increase in usage of PSA inkjet vinyl as the installed base of inkjet printers continues to grow in all segments.”

Web Consulting also sees flatbed UV-curable printers as a potential threat for PSA sign vinyl consumption. According to Michael Flippin, “Flatbed inkjet printing might help reduce the overall usage of certain inkjet printing materials such as PSA vinyl. This trend will be driven by potential savings on material costs as well as potential reduction of not only some rather labor-intensive processes but also reduction of material scrap costs. However, this report also confirms that PSA vinyl is still a dominant sign decoration method and that Web Consulting predicts that it will remain an important decoration method for years to come. With that said, we, however, also envision a future PSA sign vinyl market that may not be as prevalent as it is today.”

Web Consulting used both industry data and primary research to produce the 2004 U.S PSA Vinyl Trends Market Report. Providing an in-depth look at the PSA sign and inkjet vinyl market, this study was conducted in July 2004 by surveying over 330 U.S. sign shops and screen printers. The shops surveyed were further classified into several business segments, including commercial sign shops, electric sign shops, vinyl sign shops, franchise sign shops, small screen printers (sales under $ 1 million), and large screen printers (sales over $1 million). The data presented in the report includes U.S. market share, brand ratings, distribution trends as well as purchasing and usage trends for both PSA sign and inkjet vinyl. The 2004 U.S PSA Vinyl Trends Market Report is available for immediate release. For more information, please contact Michael Flippin in Web Consulting’s Boston office at Tel: (617) 536 5925.

Web Consulting
Originally founded in 1993, Web Consulting is a leading global consultancy to the digital and analog printing and imaging industries. The company provides primary market research, technology information, merger and acquisition support, strategic analysis, and supporting services such as implementation, training and project management. The company specializes in graphics, textiles and industrial applications for digital and analog printing and decoration. In December 2003, Web Consulting Inc. (www.web-na.com) acquired Vector Marketing’s Digital Printing Research and Consulting Business.

Web Consulting Inc.
Phone: (617) 536 5925
Website URL: www.web-na.com

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