Some will argue, but most agree that the laser engraver is the most useful piece of equipment in any awards shop. Today’s models are very powerful, and they can engrave or mark a remarkable number of products and materials. In addition, the software programs that operate laser engravers grow increasingly intuitive with each new generation, making a laser engraver little more trouble (though much more expensive) than the average printer.

However, the laser engraver’s greatest gift to an awards shop is that it allows that shop to offer much more than awards. Lasers exemplify diversification and crossover with other markets. One of those markets is the market for laser-engraved signage, a popular and growing segment of a very profitable industry.
 

Businesses require signage, which open up a great avenue of profit potential for laser engravers. Photo courtesy of Supernova.

Is Laser Signage Profitable?
Many of today’s shops are looking at their sales and correctly concluding that they need to diversify their revenue stream. The laser’s diversity makes it a natural choice to be the equipment used to diversify that revenue by creating products for another industry, but what industry? Lasers can serve many. However, signage is more alluring than others for several reasons. First, it has been around forever and will not go anywhere anytime soon, so it is a reliable and steady market. Second, every business requires signage of some sort. So not only is there vast potential for new customers, there is potential to sell another product to current customers.

Finding customers does not seem to be an issue, which brings up the question: is laser signage profitable?

According to Mike Dean of Epilog Laser in Golden, Colorado, sign shops think they are. “Because of their versatility, an increasing number of sign shops are diversifying their businesses with lasers. The ease-of-use and ability to work on a multitude of materials is appealing to designers and sign manufacturers looking for a flexible resource that, when brought in-house, can save time and resources for jobs previously done by third parties, as well as offer unique signage ideas that are highly profitable.” He adds that potential customers include hospitals, hotels, museums, retail chains, spas, schools and more—anywhere ample signage is needed.

Jim Olsen of BrightStar Lasers in Shawnee, Kansas, agrees and says that judging from his customers, signage is very profitable. “The people that are using it in signage are doing well, even in a poor economy,” he says. “I would add that most of the people I think are most successful are involved in the larger commercial signage projects. Some of those projects are still going forward where budgets have limited some of the smaller markets. But it seems that schools, hospitals and big commercial buildings are where my customers are still doing very well.”

To that, Tong Li of SuperNova International in Lansing, Michigan, adds, “Traditionally, all commercial jobs are more profitable than consumer jobs. With AP Laser Machine, a wide range of commercial markets can be explored. Just because the engraving market is flooded with boxed laser machines recently, all existing laser engraved signs are in small format, less than 36” in the longest material size, mostly for thin materials. But a large amount of commercial works are on large size and bulky materials, even if the engraving sizes are small. For example, a small logo on a large size wood board or glass panel.”

Cherie White of Universal Laser Systems in Phoenix, Arizona, assures that laser signage is definitely profitable. “A large number of our customers are in the signage market. Some have multiple Universal systems, and their customers are office managers and building facilities managers. Anyone who has to comply with ADA signage requirements is a potential customer.”

Jonathan Cohen of Gravograph in Duluth, Georgia, concurs, “A nice profitable sign is one that is ADA compliant. The laser can easily cut out the raised elements of the sign. The drill hole is best done with a rotary engraver. Another target is the customer needing signs with cut-out letters and shapes.”

Mira Wu of GCC/LaserPro in Taipei Hsien, Taiwan, says she has observed a rising trend of business owners choosing laser engraving for signage making.

For shops who are considering a variety of equipment with which to enter the sign market, Warren Knipple of Trotec Laser in Ypsilanti, Michigan, points out, “In general, a laser is more cost efficient to operate than a rotary engraver or a CNC machine. The operation of a laser in itself does not require any consumables, thus reducing incremental costs and improving profitability.” He adds that the use of a laser can eliminate the need for secondary processing operations with materials such as acrylics.

(Above) A laser can easily cut out the raised components of an ADA-compliant sign. (Below) There is a large market for a diverse range of engraved signage. Photos courtesy of Gravograph.

Which Lasers Create Signage?
Signs come in all shapes and sizes, so in theory at least, every laser engraver has the potential to create signage of some sort. That said, large laser engraving systems have much more flexibility, an obvious advantage over smaller systems, and when mentioning models with an aptitude for signage, most manufacturers list their larger models first. They are, of course, more expensive, but they also offer higher profit potential.

Cohen points out that generally, “It’s better to have as large a machine as you can afford so you can handle more requests in-house and make more profit. Our largest laser engraver today is the LS900 (24” x 24”). Also, higher power laser sources provide shorter job times that are useful for high production shops.”

Olsen says his lasers are often used to create signage, “Especially our larger-sized lasers. The 24”x36” and 36”x48” sizes are both very popular with sign making because they can handle large materials.”

Knipple, says, “The entire range of Trotec lasers can be used to make signage and signage components. The model best suited is dependent upon material, volume and size of the application. For example, the Speedy 300 has a 29”x17” working area, the SP500 has a 49”x28” working area, and the SP1500 has a 59”x49” working area. These lasers can be equipped with up to 400 watts of power.”

That is quite a bit of juice, much more than most shops will need. However, it does bring up an important point. Power is just as important as size when it comes to creating laser signage. Whenever cutting is part of the equation, as it is in creating laser signage, power is key.

White notes that 50 or 60 is a good laser power choice for signage. It is enough to efficiently cut acrylic. She adds, “Universal’s laser systems can process all the popular signage materials and are especially suited to making dimensional letters and directional and ADA signage out of acrylic or engravers plastic.”

Dean says that Epilog Laser systems are ideal tools to create and enhance signage. “Since our machines can both cut and engrave a variety of materials, our systems can be used to cut individual pieces/letters for signage, engrave existing signage or both.”

He adds, “All of Epilog’s CO2 systems are ideal for creating signage; however, because our systems vary so much in engraving table sizes, customers need to make sure the system they select has a large enough engraving area to fit their needs. Epilog’s smallest system has an engraving table that is 16”x12”, while our largest system is 36”x24”.”

Again, larger laser systems will cost more, but they also offer a great deal more profit potential.

“LaserPro carries large selections of laser engravers. Depending on the size of the signage, we provide various models for our customers. Our most popular models, the Spirit series, have a work table size up to 18”x29”. Our largest laser engraver, Gaia, has a work table size up to 36”x51”. All our laser engravers have pass-through front/rear doors, which allow engraving on oversized objects,” says Wu.

The lasers we have discussed so far are the classic, box-shaped laser engravers we have all seen for years. However, there are other options, as Wu has just told us. Of course, LaserPro isn’t the only company with an alternative design.

Li tells us, “Our patent-pending AP (all purpose) Laser Machines are designed for engraving large-format, large-size materials, such as commercial signs. We modified the traditional boxed laser machine and cut it into two parts: laser top and home base. When the laser top is on the home base, it acts exactly as the boxed small-format engraving machines, which can engrave large and small size materials. But, when the laser top is removed and placed on a carriage cart, then any size of large material—large sizes of acrylic and glass sheets, a coffee table or even an office door—can be placed under the laser top and engraved.”

When choosing a laser for your business, be sure to take a long-term view. Laser engraving systems should last for several years, during which time your business may grow and acquire a wider range of customers whose needs may include large-format projects. Consider what would be best for your business: a laser your company can outgrow or a laser your company can grow into.

(Above) Since awards clients and signage clients often use the same materials, you can increase your customer base with much of the same stock. (Below) Usually no extra training is required to create laser engraved signage. Photos courtesy of Universal Laser Systems.

Challenges?
Every new product line and industry an awards shop decides to serve will have its own set of challenges. What are they for the signage market?

“I don’t think there’s anything special to learn in terms of the laser or its operation. It may be that if they’re cutting different materials that they haven’t been accustomed to cutting, such as acrylic or other plastics, there may be a little learning curve on the settings and best techniques for cutting those materials,” says Olsen.

“Award industry professionals who operate a laser already have the core capabilities necessary to manufacture signage,” says Knipple.

The biggest challenge for awards retailers is building and maintaining a new customer base, says White. The differences in laser use between awards and signage are minor. Signage applications are generally more cutting-intensive, but usually no extra training is required.

“Of course, we do offer a monthly training class if you’re looking for a confidence boost. As far as safety goes, a little extra caution should be used when cutting thick sheets of acrylic, but you won’t have any issues if you pay attention and never leave the machine unattended,” says White.

Dean points out that the laser system itself is similar to a printer: you hook your computer up to the laser using a USB or Ethernet connection, import your artwork and send the job to the laser. Only instead of putting ink to paper, you’re putting the laser to whatever material you’re working with.

However, “As with any new material or product, there is a learning curve as you determine which speed and power settings to use with different materials, but with time and practice, sign makers should not encounter many challenges when incorporating a laser engraving system into their existing business.” Dean adds that Epilog’s systems are designed with safety in mind. Unless the lid is closed, the laser itself will not fire.

Whether you are new to signage, lasers or both, check with your manufacturer about educational opportunities. They are out there, and manufacturers can often direct users towards education specific to their equipment.

Market Differences?
Sometimes different markets have a culture that newcomers must adjust to. However, most feel that the awards and signage markets are already similar and related, so this should not be a big issue. However, there are a few things to keep in mind. For example, there will be more cutting, says Wu.

The size of the projects they work on is another difference. Knipple says that the most significant difference from a laser standpoint is that signage manufacturers usually require larger platforms due to the size of the materials they are processing.

“Requests from any one signage customer can be more diverse than those from an awards customer. A customer who wants signage might want small nameplates for his employees and also a large external sign to advertise his business. Applications for both types of customers often use the same materials, however, so you don’t have to double your stock to double your customer base,” says White.

“Seems to me that award customers are looking for something unique where the retailer would need to be creative. Signage, in most cases, is to meet a functional requirement. More precision would be required in this case,” says Cohen.

Olsen suggests that there are two different kinds of sign markets. There is the small sign market, which is somebody that needs a sign next to their cash register or a handful of signs for a small business. The larger sign market is made up of commercial customers.

“The challenge there is that a lot of times they’ll come in with blueprints or specifications for colors, materials, sizes and all of that. They had someone design the signs ahead of time, so really, it’s a fabrication job. Sometimes, learning how to read blueprints and deal with specifications could be a challenge,” says Olsen.

While those are important points to consider, Dean says that customers expect stunning results regardless of the industry. “An awards customer may expect an elegant award, whereas a signage customer may expect a multimedia piece of signage, but either way both want the best results possible.”

Dean also offered his own dichotomy of laser signage, saying there are two 
techniques that have been gaining popularity in the industry: inlays and multi-media signage.

“Inlays are a common technique used when creating signage, but the laser allows you to create more detailed and highly accurate inlays than you can through any other method. Using the laser, sign makers cut shapes, patterns or letters from their desired material and then cut the same shapes from a different material. The cut-out is inserted into the cut area, creating a strong contrast and sophisticated look. Because of the small width of the laser beam (.004), you can create inlaid materials with more intricate designs than you could create through any other method,” says Dean.

He adds that multi-media signage—signs comprised of different mediums—are extremely popular. “Different materials make for an appealing sign that features great texture and contrast,” says Dean, adding that, using the laser system, sign makers can engrave certain portions of a sign or cut out decorative accents to accompany the message. The possibilities really are endless.

Overall, Li points out that the value proposition for signage customers is dramatically different than for award customers. Signage is an obvious necessary investment. Advertising is the lifeline of a business, while awards could be a luxury.

“And the value of signage is not based on the cost, but the return on the investment. For example, an airport glass engraving will be worth a lot more to a restaurant than a nameplate on a desk; therefore, you can charge the airport gift shop a lot more to engrave their sign on a glass panel than to engrave name plates,” says Li.

Read The Signs
Ultimately, whether or not a shop decides to diversify their laser’s duties to delve into the sign market is up to the owner, but this much is clear: all signs points towards a need for diversification. Signage, and specifically laser signage, is simply one form of diversification that makes sense. Shops who fail to recognize this may one day be forced to read another sign: out of business.