|Last Quarterly Update:||3/11/2013|
|SIC Codes:||7336, 8099|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry plan, design, and manage the production of visual communications involving graphic art and illustrations. No major companies dominate the industry.
The US graphic design services industry includes about 16,000 companies with combined annual revenue of about $7 billion and is expected to grow at a slow rate over the next two years. Key growth challenges include stagnant economic growth and competition from in-house staff, online DIY design services, and offshore agencies.
Regional economic activity drives demand, because most graphic design firms are small and work locally. The profitability of individual companies depends on accurate bidding, timely delivery of projects, and a steady volume of work. Large companies have advantages in marketing and sales, breadth of services, delivery of complex projects, and supporting ongoing contracts. Small companies can compete effectively by responding quicker, adopting new trends, and specializing by services or markets. The industry is highly fragmented: the 50 largest companies account for less than 15 percent of revenue.
Customers and prospects become competitors when they bring design services in-house rather than hire graphic design firms. Freelance designers may be competitors or contract labor.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major industry services are corporate and organizational image services (30 percent of industry revenue); advertising creative services (20 percent); website design and development (10 percent); publication design services (10 percent); and commercial illustration design services (5 percent). Some firms also offer other specialized, professional design ...
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