|Page (1) of 1 - 05/21/13||email article||print page|
Graphic Designers in Canada Industry Market Research Report Now Available from IBISWorld(May 21, 2013)
Los Angeles, CA (PRWEB) May 21, 2013
Graphic designers provide an essential service for marketing and advertising activities in just about every industry. Operators develop visual displays, from product packaging to advertisements, across all visual media. Unfortunately for industry operators, a reliance on advertising expenditure has contributed to relatively slow growth in the five years to 2013. During that time, the recession caused companies to reduce advertising budgets to maintain profit margins, says IBISWorld industry analyst Kevin Culbert. This factor caused advertising expenditure to decline 9.0% in 2009, hampering industry growth over the past five years. Consequently, IBISWorld estimates that the Graphic Designers industry will grow at an average rate of 0.2% per year to $2.0 billion in the five years to 2013. In 2013, the industry is expected to benefit from a 4.0% increase in total advertising expenditure, which will boost industry revenue 1.0%.
Another factor that has limited the long-term growth of the Graphic Designers industry has been the rising value of the Canadian dollar. The growing value of the dollar has reduced the amount of work coming in from across borders and has increased the amount of domestic work that is being outsourced to low labour-cost countries. The dollar's value is heavily tied to commodity prices, adds Culbert. As such, the rising value of commodity prices over the past five years has reduced demand from the United States. Furthermore, this industry has a significant number of nonemployers. When demand declines, nonemployers are able to make a quick exit. Consequently, the number of firms operating in the industry is expected to remain relatively flat in the five years to 2013, declining at an average rate of just 0.1% per year to 9,446.
The industry is extremely fragmented, and its low level of concentration reflects the on-demand nature of graphic design services. According to Service Canada, about one third of graphic designers perform freelance work and the remaining employees work at graphic design firms or in-house for an organization. By comparison, the number of individuals that work freelance for all occupations is about 11.0% on average. The number of freelance graphic designers has increased over the past five years, especially during the economic downturn when larger firms downsized and laid off employees, causing them to start their own business or freelance. As a result, no graphic design firm accounts for a significant share of the market.
In the five years to 2018, IBISWorld estimates that industry revenue will increase. During that time, the industry will benefit from the continued shift to digital media and rising corporate profit, which will contribute to an increase in advertising expenditure. Nevertheless, the industry will battle increased competition from in-house design teams and overseas operators in low labour-cost countries. This factor will limit profit growth in the five years to 2018. For more information, visit IBISWorlds Graphic Designers in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry plans, designs and manages the production of visual communication to convey specific messages, clarify complex information or project visual identities. Services include printed materials, sales displays, packaging and corporate identification.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Read the full story at http://www.prweb.com/releases/2013/5/prweb10753258.htm.