The economic forecast for the restaurant, real estate and retail industries is strong. The future looks bright for the home improvement and health provider industries, as well as many others.
This is good news for SpeedPro franchisees since these industries, and many more, rely on services provided by the digital printing industry. It’s important to note that the forecast for our industry is also positive. It is healthy in 2018 and will continue to thrive in the foreseeable future. It has a track record for growth: Five years ago, in 2013, the digital print market was worth nearly $121 billion; in 2024, it will be worth more than $272 billion.
Here’s what SpeedPro franchisees can look forward to from these supporting industries:
The restaurant industry continues to grow despite challenges caused by disruption. Some segments of the industry are faring better than others, such as fast-casual concepts, which are expected to grow by 7.5 percent by the end of 2018. Quick-serve concepts are anticipated to grow by 3.5 percent while casual and fine dining restaurants are predicted to grow by 2.7 percent. But, with tax cuts taking effect next year, spending to eat out is expected to increase in 2019.
Restaurant industry growth means demand for a wide variety of signage – window graphics, feather flags, digital menu boards, retractors and table coverings. And, don’t forget about food trucks, which will need vehicle wraps.
Due to demand caused by a tight real estate market and the number of natural disasters that have destroyed homes or displaced people, more housing units are slated to be built – in the area of 6.6 million.
That means developers and real estate agents will be eager to sell these new homes. Large-format printers can expect increased demand for all kinds of outdoor signage, vehicle wraps and window graphics.
Consumer spending continues to be strong due to a low unemployment rate and rise in discretionary spending, which contributes to a healthy retail environment. That includes in-store sales, which means there’s plenty of demand for point of purchase displays.
Because the housing market is tight, many current homeowners are choosing to stay put and remodel instead. This is a boon for big box home improvement suppliers, like Lowes and Home Depot. Retailers with showrooms for appliances and fixtures will also need various forms advertising, including in-store displays, to bring customers in, inform them of sales and direct them to the right areas.
Thanks to an aging population, there’s greater demand for health service providers, including hospitals. Hospitals will undergo renovations, which includes adding more than 1 million hospital beds. The cost of health care will also increase, so patients and their families will expect an experience that resembles a hotel stay. That means enhancing indoor décor, which provides an opportunity for large-format printers to supply digital signage, wall murals, elevator wraps, window graphics and more.
Economic Forecast for SpeedPro: Growth
These are just a few of the vertical industries with a strong economic forecast that will benefit SpeedPro franchisees for the remainder of 2018 and well into 2019. Combine the growth of these industries with the nature of digital printing – to help other businesses make money with the use of several different applications – and the opportunity for each SpeedPro studio owner to grow their own business is excellent.
Our 2017 gross profit margins are a testament to that. The top performing quartile of franchise studios had gross profit margins of 64.2 percent – significantly more than the typical small business, which see gross profit margins of 25 to 35 percent.
For information about franchising opportunities with SpeedPro, contact us today.