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Graphic Design Services
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US graphic design services industry includes about 16,000 companies with combined annual revenue of about $7 billion. No major companies dominate the industry, which is highly fragmented: the 50 largest companies account for less than 15 percent of revenue.
COMPETITIVE LANDSCAPE
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 labor-intensive: average annual revenue per employee is less than $120,000.
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 general graphic design, commercial art and illustration, drafting, and photography. General graphic design services comprise 75 percent of industry revenue, and commercial art and illustration, about 15 percent. Some firms also offer other specialized, professional design services and some sell merchandise. The graphic design industry, once known as graphic arts, has evolved from producing only graphical images to providing more extensive design services – to such a degree that the printing industry now uses the moniker “graphic arts.”
Graphic design services result in...
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