Phase 3 Marketing & Communications: Seeking Growth Outside of Print

“I think it’s steady,” says Ken Holsclaw, president and co-founder of Phase 3 Marketing & Communications, which is headquartered in Atlanta, Georgia, with production locations in Dallas, Texas; Nashville, Tennessee; and Mountain Lakes, New Jersey, when asked about the current state of wide-format business. “I don’t know that there’s tremendous growth, but it’s steady.” From the standpoint of the company, which reported wide-format revenues of $24.8M — 58% of its total revenue — part of that steadiness comes from its many retail-focused customers, some of whom are seeking higher-end applications.

Ken Holsclaw, president and co-founder of Phase 3 Marketing & Communications: “I’m pretty bullish on 2025.”

He says, going back to ten years ago, retailers were trying to figure out their marketing mix between online and brick-and-mortar sales, which led to a degree of business uncertainty. Where, retailers sought to resolve, should their "spend" go? Today’s retail environment is more settled, and he believes that those retail companies that were likely to go out of business already have done so, resulting in less customer-based risk.

Regarding the applications Phase 3 produces, Holsclaw says, “We’re doing all of it. It can be fabric, roll-to-roll, dye-sub.” That said, he doesn’t see large changes in these areas. For him, the most significant growth opportunities are outside of printing. One significant example he provides is high-end fabrication for indoor marketing displays. In particular, he says, high-end fabrication has allowed entry into the experiential space. It is a skill set that fewer wide-format producers hold. “I like that sector of the market,” he says. “It relies on creativity. It’s custom. It’s less commoditized.” He further sees experiential display becoming a “must-do” opportunity among higher-end retailers and brands because it can be a more effective way for retailers and others to engage customers.

And additional services are increasingly important at Phase 3. Holsclaw says the remaining 42% of the company’s revenue comes from small-format printing of items such as brochures and notecards, and from an increasing volume of branded merchandise — which has become a strong opportunity for the company. Additionally, he says the company provides a robust portfolio of marketing agency services.

Looking at the wide-format segment, Holsclaw says he’s seeing more work in grand-format outdoor installation projects. “15 or 20 years ago,” he says, “if you saw a building wrap, it was probably in New York City.” Now, he shares, those types of applications have become much more common in places such as Los Angeles or Miami, or cities hosting major sports or other events, where buildings will be used to promote what’s happening and to market to those in attendance.

As for the year ahead, Holsclaw says, “I’m pretty bullish on 2025,” particularly since the U.S. presidential election is over, and election years tend to cause customers to hold projects. He also believes ongoing interest rate cuts will positively affect the real estate market, “so [customers] will open their wallets more.” He also believes the incoming administration will provide a regulatory environment more favorable to businesses.

For Phase3, Holsclaw says the company will continue to execute its growth strategy as it moves forward. This plan includes a mix of organic growth and growth through acquisitions. He reports that the company, during 2024, increased its warehousing capacity by purchasing a new facility in Texas, and is currently looking to expand capacity in its Atlanta location during 2025. “All kinds of good stuff going on here,” he shares.