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Daktronics Inc. Message Board

  • robolite2001 robolite2001 Jan 3, 2012 2:43 PM Flag

    Who makes all those LED Billboards?

    Everywhere I go In Minneapolis area I see new electronic LED billboards popping up on the Highways. Who makes them? If is is Daktronics it has to drive their share price up sooner or later.

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    • Answer: MARGIN SUCK!

    • What caused today's MARKET SPANKING all of us?

    • That very much depends upon whether they sell them at a profit or not. If they lose $1 for every billboard sold, the more they sell the lower the stock price.

      And that all depends upon how efficient their manufacturing process is. There is lots of competition for putting together the elements of those boards--much of it done very cheaply overseas. Really quite a low tech business with LED's being available for purchase to anyone at competitive prices, computers being similarly available at fair price points, and only the installation available for easy profit if Daktronics can assemble a team of people who produce more efficiently all around the country than Mitsubishi or Firethorne.

      • 1 Reply to skiplarson98
      • Gosh, thanks for the insight that Daktronix needs to sell their billboards at a profit, never thought of that. You must have an MBA. Why would you assume their manufacturing process is inefficient? They have been doing LED displays exclusively for 45 years now, they must have learned a few tricks. The World Leader in LED billboards Manufacturing is Daktronics. In fact, since 2001, independent market research from iSuppli Corp has consistently ranked Daktronics number one with approximately 30 percent of the entire worldwide LED video display market share. What elements of the boards "being done very cheaply overseas" are you talking about? The LEDs and drivers are mounted in vast arrays that assembled are very heavy and are not being shipped to the US from overseas locations. The profit is in the sales, final assembly, installation, customer service and innovative software, all of which are Daktronics' strengths.

        I'm merely pointing out that a core business of Daktronics, LED displays used in outdoor advertising, seems to be expanding rapidly and that should be a good thing for Daktronics, assuming after 45 years of doing this they have people of your brilliance who realize they can't lose $1 on every installation.

 
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