On its 3rd year, gISA Sign Expo Observation Tour 2006h was implemented by co-sponsors of the All Japan Neon-Sign Association (AJNA) and the Japan Sign Design Association (SDA). A total of 21 people attended; 9 from the AJNA and 12 from SDA. Although it did not reach the level of last yearfs event in Las Vegas, this yearfs Expo was quite successful: Total number of attendants was 19,853 compared with 21,777 last year. The number of participating companies was 566 (582 last year) and the number of display booths was 1,715 (1,647 last year). Also, 1,700 participants attended the annual Discovery Seminar.

One of the most important events at the Expo was the Annual Global Sign Forum with the representatives of outdoor advertising agencies from all over the world. It was the 7th annual event and was attended by 4 representatives from Japan: The following is the report on the Global Sign Forum. As for the details of the Expo, please refer to the reports provided separately.

 Opening
Ms. Lori Anderson, President of ISA made a welcome speech followed by the introduction of the ISA officials by Ms. Sapna Budev, International Affairs Manager: Ms. Lori Anderson, Mr. Bob Mattatall, International Committee Chair, Mr. Jean-Pierre Meganck, International Committee Vice-Chair, were introduced. Then, the Forum opened for speakers representing each region of the world.

 Asia-Pacific Region
 Mr. Mohsin Durrani of the Pakistan Outdoor and Media Advertisersf Association spoke about the growth potential of the sign industry in Pakistan and neighboring countries. Pakistan needs an infusion of new technologies and overseas investment. Since Pakistan has a huge market for its sign industry and low-cost labor is widely available, the future growth of the sign industry and related production and distribution industries can be expected.

 Mr. Noppadon Tansalarak of the Asian Sign Association talked about the challenges facing the industry in the Asia Pacific region. He discussed the cost of labor vs. the quality of product, the tax benefits of free trade areas, and differences in production for regional use vs. export. He also discussed the following differences in technology and cost of labor within the region:
Japan/South Korea/Taiwan: High level of technology and high labor cost
China/India: Low level of technology and low labor cost
Southeast Asia: Moderate levels of technology and labor cost
According to Nielsen Media Research, a 28% growth in advertising and media spending is expected in the region. The largest share of 5% for outdoor advertising was registered in Hong Kong and India.

 Yasuya Kato of the AJNA, spoke about the current situation of outdoor advertising in Japan. As the Japanese economy has been recovering in recent years, advertising spending has been growing. According to a survey by Dentsu, the total advertising expenditure showed an increase for two consecutive years and the spending for outdoor advertising maintained the level of the previous year. As for the issues of Dark Skies that had been discussed often at ISA, they were not so much problematic in recent years in Japan.

 Mr. Osamu Jingi of the AJNA spoke about LED technology as the hottest new trend in the Japanese sign industry. He discussed the characteristics of LED as well as the environmental benefits:
Advantages:
l LED products can be operated with lower voltage and current that results in the reduction of energy consumption by 80 to 90% compared with a neon sign.
l LED products have a long life. The lifespan of a warm color LED is 50,000 hours which means it will last for 17 years if used 8 hours a day.
l The Japanese government is considering helpful measures including a tax incentive for LED users.
Disadvantages
l High cost. LED products cost 2 to 2.5 times more than neon products.
l Issues of patent and licensing are often encountered.
l Most sign shops are not experienced in handling LED products. Serious problems have occurred at installation.
Environmental Benefits
l LED products are friendly to the environment because of the small energy consumption and emission.
l Japan needs to reduce greenhouse gas emission in accordance with the Kyoto Protocol. LED products will play an important role for this purpose, and the Japanese government expects an LED expansion.

In summary, LED products have huge potential in Japan and have been showing steady growth. It should be noted, however, that providing proper information and education to the advertising industry is required for the healthy growth of the market. Also, we should pursue better quality, e.g. eliminate uneven colors.

 Europe/Middle-East/Africa Region
 Mr. Jean-Pierre Meganck of the European Sign Association spoke about the issues that the European sign industry faces. Throughout Europe, energy conservation and Dark Skies remain as issues. Although the European Community is connected economically, each country has differing environmental regulations and legislation affecting the industry. For example, in Belgium, the usage of a class B-2 ballast is required to conserve energy. The Green Party is gaining popularity throughout Europe and Dark Skies is becoming a big issue. Other noticeable trends are downsizing by big corporations and the consolidation of individual operations.

 Mr. Wemer Shulz of the South African Sign Association spoke about the challenges and opportunities facing the African sign industry. The sign industry is still underdeveloped in most African nations. In South Africa, however, the level has reached the worldfs standard in terms of both materials and production. Geographic isolation has bread an environment of resourcefulness, self-reliance, and commitment to both quality and price. In general, there is a trend toward economic growth and positive political changes throughout Africa. However, the immense diversity and passion around political issues can cause some challenges in the business environment. SANSA is committed to uniting the African sign industry by looking at issues that affect manufactures. As a cohesive group, they will have much more influence with governments to affect positive regulatory decisions. At the moment, energy conservation and Dark Skies do not play a role in Africa but guidance on avoiding these future pitfalls is much needed from the more established sign associations worldwide.

 The Americas
 Ms. Cecillia Davidek of the Argentinean Sign Association spoke about the history and the future of the sign industry in Argentina. In the 1980fs, the industry was based on skilled manual labor with hundreds of craftsmen working in steel folding, neon and acrylic. In the 1990fs, the governmentfs decisions to open the market to the world caused the sign industry to implement new technologies such as cutters, plotters, LED related products, screen printers, and routers. During this period, companies grew in size and improved technical skills. Also, prestigious universities opened special courses for graphics and industrial designs. In 2001, Argentina suffered an economic, social, and political crisis that led to the closing of many sign companies. Many factories were sitting idle or operated at minimum capacity due to the loss of contracts with overseas customers. In the past five years, the impressive economic recovery attracted attention both domestically and internationally. The Argentines kept obtaining new knowledge in technology and manufacturing. The industry has incorporated digital printing, electronic signs, canvas, neon, papers, acrylics and other graphic products. Currently, approximately 5,000 companies are in the sign industry. On behalf of the Argentinean sign industry, CAIL is working to implement sign licensing and increase the quality, service and the credibility of local companies. Emphasis is placed on art, aesthetic, quality, processes and marketing.

 Mr. Michael Lauretano of the Lauretano Sign Group and the former Chair of ISA spoke about the challenges facing the industry in the United States. He grouped the issues under three categories; Government Intervention, Rising Costs and Education.

Government Intervention: The cost of permit acquisition, loss of time and manpower to obtain permits and the cost of the actual fees is only a small part of the problem. Our constant battle on the national, regional and local level expends a great deal of time and money that could be better used in other areas but there is no denying the good solid progress we are making with our Government programs. It is clear that ISA has made a major impact in the way we combat this municipal struggle. ISAfs cooperative, educational approach to working with law makers has certainly created a better environment for mutual solutions and cooperative communication when it comes to restrictive sign codes. Our attention to issues such as Dark Skies, on a global basis is critical

Safety and environmental regulations continue to expand and overwhelm even the most organized in our industry. These regulations certainly impact each and every facet of our industry and require an extraordinary amount of manpower and management as well as expertise. Issues like OSHA requirements, disposal of hazardous materials, compliance record keeping and associated insurance coverage are rapidly becoming major hurdles for all of us. Safety and environmental concerns are very important issues that must be addressed and improved upon in our industry. Awareness and education are the tools we need to get out in front of these complex requirements.

Rising Costs: (When Mr. Lauretano spoke of rising material and fuel costs, many members of the audience nodded and murmured their agreement, affirming that the USA is not alone in this dilemma.) Everywhere we turn materials are not just inching up slowly. They are rising at unprecedented rates and many products spike on a regular basis making estimating more like roulette than science. More and more we see fuel surcharges as we and our vendors attempt to offset and pass along these costs. This challenge is truly global and truly impacts all industries as well as all of us as individuals; tricky to fix or even adjust because it is a moving political target.

Insurance and employee costs are by no means inferior to material and fuel. Each year our employee costs including wages, workersf compensation, business insurance, and compliance record keeping, seem to break new records in the cost category. Lost time in the workplace and environmental regulations can be managed and controlled in much more efficient and effective ways, especially if we all work together to educate our industry.

Education: The greatest gift to our industry is to educate and inspire our next generation. These young men and women need to be prepared for not only the issues listed above but they also need to be prepared to compete in a truly global marketplace. It is critical that ISA and other organizations continue the wonderful educational programs we already have in place. ISA has been a world leader in identifying the educational topics we need to address and then providing those educational opportunities to our industry. It is time we set our sights on the next generation. Teach them now what they will need to know to carry our industry forward. Give them compelling reasons to stay in our industry and convince them to seek others in their generation to join our industry. Inspire them to advance our industry into the future by investing in the education they need for the future, conducting forums that address next generation issues, and providing opportunities for peer interaction to the members of the next generation in our industry.

 Discussion
Much of the discussion was about the need for youth education programs at the university level. The conclusion was that more pressure should be put on universities to train in specialized areas and that Sign Associations worldwide need to work together on a mentoring or exchange program to educate the next generation. Other discussions centered on the rising cost of oil and the need to streamline operations and increase both energy and business efficiency to maintain operations and profit. The point was made that countries should learn from the legislative efforts made in North America and Europe. Learning from the past would help avoid problems that might occur in other regions. ISA requested representatives from these regions to remain vigilant to local regulations and to inform ISA staff about any trends toward restrictive laws so that ISA can provide guidance and advice based on past experience.

 Closing
Ms. Sapna Budev spoke briefly about the 2006 Study Mission to Istanbul and introduced Mr. Heyrettin Ege. Mr. Ege spoke about his country of Turkey and explained the itinerary. Then, Ms. Budev asked the attendants if any of them were interested in hosting the 2007 Study Mission and requested them to contact her. The Forum adjourned. The reception followed and was attended by 75 people. The reception was over at 6:30 pm.