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Tips for making waves in the channel-letter market.

By Steve Aust

Often, channel letters resemble extended family. Some are quite dignified and understated, like taciturn Uncle Bob, who utters little (save ‘Pass the gravy, please”), while others, like crazy Aunt Beulah, convey the full depth and breadth of their personality upon eye contact. They’re arguably more stylish than roadside cabinet signs, which, like Ralph Sampson or Yao Ming, may be remembered only for their height (immediate visibility is their raison d’etre), yet less flamboyant than electronic message centers (who might best resemble your tow-headed, five-year-old nephew frantically jumping and screaming, “Look at me! Look at me!”), whose dynamic motion, ideally, conveys a forward-thinking image.

On this middle path, channel letters maintain a vital electric-sign marketshare. In tandem with demand, better materials and equipment accelerate production, which yields better results. The neon vs. LED question simmers, yet most sign companies use them both successfully. And, some ambitious companies have embraced emerging technologies to kick-start channel letters’ somewhat staid image. To paraphrase the old cliché, there’s more than one way to bend and light a “G.”

Industry trends
Channel letters remain integral to virtually all electric signshops. According to last month’s Electric State of the Industry report, 95% of companies surveyed fabricate channel letters (see ST, July 2007, page 87). In terms of bolstering the bottom line, channel letters slightly outpace cabinet signs as the top-grossing electric-sign type, 27.1% to 26.6%.

The LED/neon question remains a hot topic. March’s latest Lighting Survey (see ST, March 2007, page 98) noted that channel letters comprised approximately 70% of neon usage, and overall, neon was used over LEDs at an approximately 3:1 clip.

However, over the last three years, red LEDs have overtaken red neon as the light source of choice – roughly 50% of shops reported using them. White LEDs also won significant gains; the survey reported a leap to 31.6% usage. White neon is still preferred over white LEDs by roughly a 4:1 ratio.

However, the motivations behind the light-source choice differ little. Initial cost remained a top consideration (which would seem to favor neon use, although startup expenses have closed, especially for red), as have labor (advantage, LEDs) and durability (an all-night debate). The survey underscored the continuing shift to LEDs: Fifty-seven percent of respondents reported more LED use, with 38% standing pat.