Sign & Digital Graphics

2015 WRAPS

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10 I WRAPS I 2015 B u s i n e s s & s a l e s Projects and Pursuits There is not always a clear picture of what defines a wrap shop—many shops have additional interests in related markets such as sign making, print services, window tinting or paint protection films. In this research study, 100 percent of those interviewed dedicate some portion of their business to wraps. In other words, all can be viewed as a "wrap shop" for the purposes of this study. From that total group, 23 percent specified that they engage exclusively in wraps work with no other secondary business involvement (identified by the solid red bar in CHART A). The fact that almost one-quarter of shops perform no other operations outside of wraps indicates that this business is not only healthy and growing, but is also serving as a stand-alone revenue generator for some owners. Consider that many wrap shops grew from other related practices: printing, designing, marketing and more. Of course, there is a large population of shops that conduct business in one or more other areas of work. CHART A shows the breakdown of all the other types of business functions also performed in a wrap shop. There is quite a cluster of activities represented, from automobile- specific work to apparel décor. Not surprising is that nearly three- quarters of wrap shops also make signs; many consider wrapping an extension of sign and digital graphics production. Historically there is a great overlap with sign and wrap professionals, a mix that is typically noticeable at any number of industry events. Though, as we noted earlier, it appears that a good sample of wrap shops are beginning to focus solely on wrapping as a business function. It was also not unexpected to learn that a fair amount of wrappers cross into auto body repair, pinstriping, and window tinting—vehicles tend to be the most popular surfaces to wrap. Diagram 1 gives a rough representation of this study's findings pertaining to industry overlap. It shows the mix of practices among wrap shops, including those also involved in automotive work, window tinting, pinstriping, signmaking, apparel graphics, and brand marketing. Respondents also provided some insight into how much of their overall work is dedicated to wraps, with answers ranging from 30 to 100 percent. With regard to wraps projects, it is important to identify the types of jobs being completed. Figure 1 shows that there is still a healthy blend of full-scale vehicle wraps, partial wraps, and cut-vinyl installations being performed in wrap shops. Of those interviewed, only one shop had not completed a full wrap over the past 12 months, and the same results were returned when asked about partial wraps completed in the past year. Cut vinyl and decal installation still has a strong place in the industry as 58 of 60 shops responded that they are engaged in those types of projects. Cut vinyl can be used in tandem with a full wrap, or it can be used as the primary message as seen on emergency vehicles or taxi cabs. With such an assortment of vinyl film being used on a regular basis, it is important for wrap shops to keep their inventory up-to-date for whatever job arises. Specialty film is another that certainly has a place in the market. Every shop in this report has used some kind of specialty film. Shown in Figure 2 are the specific materials that have been used by a shop at any point during a wrap project. With carbon film, for example, becoming more popular over the past few years it is encouraging to see 88 percent of wrap shops using it. It is important to consider these films for wrapping because: • They can generate more revenue for your shop as an add-on service. • They can lend to the style and uniqueness of your customer's vehicle. It is important that shops regularly highlight the benefits of specialty films. Without mentioning the availability of specialty films to a customer, shops will not only miss out on a chance to increase profits but they also fail to capitalize on enhancing a customer's experience. Vehicle Wraps Window Tinting Auto Body Repair Pinstriping/Paint Apparel Graphics Vehicle Wraps (ONLY) Brand Marketing/ Consulting Signmaking 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 5.0% 10.0% 11.7% 20.0% 23.3% 31.7% 71.7% 100%

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