Billboard and Sign Manufacturing

Business for Sale Industry Economics




Projected CAGR

2002 - 2021


2021 - 2027






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Over the five years to 2021, online media has challenged many traditional alternatives to billboards, such as newspapers and magazines, slowly seeping into billboard advertising as well.

Nonetheless, buoyed by growth in advertising expenditure and an uptick in business formation, advertisers have continued to value Billboard and Sign Manufacturing industry products as a way to reach mass audiences in an increasingly fragmented media landscape, benefiting demand for the industry.

Nonetheless, the effects of the COVID-19 (coronavirus) pandemic undermined industry revenue in 2020 as downstream demand declined broadly. As a result, industry revenue is expected to decline an annualized 3.1% over the five years to 2021.

Notably, while nonresidential construction spending has largely risen during the current five-year period, boosting demand for general signage from commercial, public, and institutional facilities, it has contracted significantly since 2020. However, as the pandemic begins to subside, industry revenue is expected to increase 3.4% to $13.2 billion.


Billboard and Sign Manufacturing industry products are used primarily by downstream advertisers and brick-and-mortar businesses across a variety of industries, which purchase signage to promote and convey information about their products and services.

As a result, growth in advertising expenditure and an uptick in business formation benefited demand for industry products over the five years to 2021.

During this period, advertising expenditure rose over much of the period, while the total number of US businesses also increased. As a result, the market for industry products expanded, and customers have allocated larger budgets for promotional campaigns.

However, the industry has also seen demand limited on account of rising digitalization, which has seen companies shit their advertising budgets toward online promotion, negating many of the positive trends that previously underpinned industry growth.


The Billboard and Sign Manufacturing industry is expected to bounce back from the COVID-19 (coronavirus) pandemic over the five years to 2026.

Corporate profit is anticipated to rise, ultimately leading businesses to increase their advertising budgets and branding efforts. During the five-year outlook period, research expects that total advertising expenditure will increase at an annualized rate of 3.8%.

Furthermore, traditional mass-market print media is anticipated to continue declining, strengthening the appeal of billboards as one of the few remaining viable options for advertisers seeking to reach a broad audience.

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This industry manufactures billboards, scoreboards, retail store signage, and transit station advertising displays. Products include non-electric signs, digital billboards, video screens, and neon signs.

This industry does not include outdoor kiosks, phone booth advertising, bus or taxi advertising, and other advertising on street furniture. It also does not include any advertising or displays made from printing paper or paperboard.


The Billboard and Sign Manufacturing sector has a wide range of capital needs depending on the product and market sector. This is due to the fact that most small billboard and sign companies only provide a few types of simple signage.

Larger producers, on the other hand, sometimes provide more broad and complicated product lines that necessitate the use of additional equipment.

Launching a small business that specializes in retail signs for local businesses, for example, takes far less property, plant, and equipment than starting a business that sells multimillion-dollar digital scoreboards and video displays to large sports teams and entertainment venues.

The majority of billboard and sign manufacturing firms are tiny, and the process entails limited production runs with a range of equipment. Because nearly all of the items in this business are created and built to client requirements, automating manufacturing is challenging.

The degree to which the finished product must be adapted for its unique application determines the intensity and amount of effort required. As a result, the manufacture of billboards and signs necessitates more work per product than many other manufacturing businesses.

Furthermore, much of the design, wiring, and installation work is done by hand, lowering the industry’s capital requirements even further. Furthermore, much of the design, wiring, and installation work is done by hand, lowering the industry’s capital requirements even further.

According to studies, industry operators will invest $0.07 in capital for every dollar spent on labor in 2021. Over the last five years, this figure has risen modestly. In 2016, operators spent an estimated $0.06 on capital expenditure for every dollar spent on labor. Over the next five years, this ratio is predicted to stay rather stable.


Demand for the Billboard and Sign Manufacturing industry’s products might fluctuate due to changes in the business cycle. Demand for signs may be fueled by an increase in the number of new businesses.

LEDs, high-definition television screens, digital displays, and design advancements all have the potential to increase demand for industry products. Furthermore, the industry’s earnings is ultimately dependent on end-user industries’ demand for advertising and signs.

As a result, advertising expenditures in these businesses have a significant impact on industry income. Advertising spending has continuously climbed since 2015, benefiting the sector. However, as the sector becomes more digital, these positive tendencies are being eroded.

Furthermore, the industry’s income is predicted to drop if economic conditions worsen during the COVID-19 (coronavirus) pandemic. As a result, the research anticipates revenue volatility in the business to remain modest during the next five years.

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