SGIA Journal Garment Edition Spring 2016 - 3

The Journal of the Specialty Graphic Imaging Association

2016, Volume Four, Spring

A Letter from the President
In this election cycle there is a lot of chatter about the true state of the economy.
Many believe that it is good and getting better, while others are convinced otherwise.
In looking at the experience of those in the garment sector who recently responded
to our survey, it would appear that experience, at least in this community, points to
considerable strength. In fact, almost 85 percent of respondents logged positive
growth last year, with more than 50 percent charting double-digit growth. This is
strong testament to the vitality of an expanding marketplace.
And where there is expansion, there is opportunity. To take advantage of a dynamic
market requires good leadership, not just good management. Peter Drucker
characterized the issue this way: "Management is doing things right; leadership is
doing the right things." To do the right things requires constantly challenging our
assumptions and conclusions. It is an ongoing process and takes its cues from many
sources of information. This Journal is one such source. We hope you enjoy it!

Ford Bowers, President & CEO, SGIA

Learn more about
the state of the
garment decorating
community in the SGIA
Garment Decorating
Benchmarking Report
on page 15.
Business

Benchmarking the Industry
2016 SGIA Garment Decorating
Benchmarking Report

Total Annual
Total
AnnualSales
SalesRevenue
Revenue

Garment Decoration Community
The 2016 Specialty Graphics Industry Survey was conducted
between January 4 and March 7, 2016. The data presented in
this report is culled from the responses of 87 US garment decoration businesses. Where it is relevant, year-to-year comparison
data is included in this report.

31.0%

$250,000 to $1.5M

35.6%

$1.5M to $5M

16.1%

$5M to $10M

3.5%
6.9%

$10M to $20M

Companies in General

2.3%

$20M to $35M

More than half (56 percent) of garment decoration businesses
classify themselves as serving business-to-business customers.
This compares to 39 percent who primarily serve business-toconsumer customers. Slightly less than 5 percent are in-plant
printers. Nearly three-fourths of companies in this sector serve
local accounts, and nearly 70 percent serve regionally. More
than half serve national accounts, and 18 percent serve nationally. The median number of employees is 6.7, and the median
annual sales revenue is $$917,134.

Technology Use

$35M and over

Technology Mix
Entirely digital
Multi-technology, but mostly digital
Multi-technology, with no single

Equipment Use & Purchases

4.6%

Figure 1

While garment decoration is, and will continue to be, a multidominating process
technology sector, data shows that the number of compaMulti-technology, but mostly analog
nies classifying themselves as "entirely analog" remained
largely unchanged from last year, and "multi-technology, but
Entirely analog
mostly digital" companies have shown a significant decrease.
Figure 2
Similarly, the number of companies classifying themselves as
"multi-technology, but mostly analog" has increased sharply.
Screen printing and embroidery continue to be the leading techSales Growth Acheived: 2015
nology used to decorate garments, followed by digital printing.
Seventy-three percent of garment decoration companies proNegative growth: -30 or more
vide post-production/finishing services to their customers. Of
those who do, bagging/tagging and fulfillment are most comNegative growth: -15 to -29%
mon, followed rather distantly by sewing and warehouseing. It
is quite common for garment decoration companies to do work
Negative growth: -10 to -14%
with other printers. For instance, two-thirds provide production
services to others, and 37 percent purchase finishing/post-proNegative growth: - 5 to -9%
duction services from others.

Negative growth: -1 to -4%
No growth achieved

Equipment purchases were strong in 2015, with more than 57
percent of garment decoration companies reporting they made 1-4%
a production-related purchase of more than $5,000. Of those
5-9%
who did, 54 percent made a purchase of more than $50,000.
For 2016, these numbers are also strong - 62 percent plan a
10-14%
production-related purchase of more than $5,000, and of that
15-29%
number, half plan a purchase of $50,000 or more. Of the types
of equipment purchased during calendar year 2015, software
30-49%
for digital printing and screen making tools were the most
common. Among screen presses, automatic garment presses
50-100%
were the most common. Among digital presses, dye sublimaMore than 100%
tion less than 96 inches in width was the most common. Of
the types of equipment intended for purchase during 2016,
Figure 3
screen making tools and automatic screen printing presses
were the most common.

Untitled-3 1

$0 to $250,000

2016

2015

9.2%

10.1%

5.8%

16.2%

31.0%

29.3%

42.5%

24.2%

11.5%

20.2%

2015

2014

0.0%

1.6%

2.3%

1.6%

3.5%
4.6%

3.2%
2.7%

4.6%

6.5%

10.3%

11.8%

21.8%

17.2%

23.0%

19.4%

17.2%

22.0%

6.9%

6.5%

3.5%

5.9%

1.2%

1.6%

4/5/16 5:50 PM

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SGIA Journal ■ Spring 2016 | 15

The SGIA Journal (ISSN: 1546-4431) is published bimonthly by the Specialty Graphic Imaging
Association, 10015 Main Street, Fairfax, Virginia 22031.3489 USA. Periodicals postage at Fairfax,
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Email: sgia@sgia.org. Web: SGIA.org. SGIA membership investment includes $50 annual subscription
rate for the SGIA Journal.

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SGIA Journal Garment Edition Spring 2016

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