According to a new ISA Sign Industry Quarterly Economic Report, the second half of 2019 will be marked with uncertainty and potentially a flattening of several specific industry sectors. But bright spots include a surprising drop in steel prices—well below the 25 percent tariff premium—and lower pulp prices.

The overall global economy faces uncertainty, with struggles in China and Brexit-related concerns in Europe. Closer to home, gross domestic product topped 3 percent in the first quarter, but is expected to weaken throughout the rest of 2019 into 2020.

The sign, graphics, and visual communications industry is expected to face a tightening market in 2019 and perhaps underperform in 2020, the report anticipates.

The report assesses four segments of the industry: two supplier markets (printing and electrical/digital signage) and two end markets (electric/digital signage and architectural signage). It also forecasts commodities. The Sign Industry Economic Report, prepared in June, is sponsored by the National Association of Sign Supply Distributors (NASSD).

Some highlights:

• Steel prices will remain down through the third quarter of 2019, though the picture for the fourth quarter is unclear. Weakness in demand is driving the market.

• Paper prices also are trending down in the first half of 2019 after seeing rises of 20 percent in 2018. Pulp prices fell sharply.

• The buying advice for the third quarter is to delay lumber purchases for long-term contracts if possible. United States softwood lumber prices will increase in the third quarter due to price spikes for spruce pine and fir from Western North America.

• Digital signage is expected to continue above its historical average on supply and end-user sides while static signage—particularly architectural signage—may struggle.

• In all sectors of the industry, the 2019-2020 outlook fails to show growth and may fall below trend in 2020.