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TIC outlook 2018

March 2018

Building on strong foundations, the Testing, Inspection and Certification industry is poised to capitalise on a host of potential growth opportunities in 2018.

In this report we reflect on the events of the past year in the sector and highlight the key factors we see shaping its development in 2018.

An estimated 40% of the market is currently outsourced, the push towards outsourcing and globalisation will be a major growth element of the TIC industry. Despite the lower oil prices and a weaker minerals sector, the global political unrest and the uncertainty posed by Brexit, the sector continued to thrive in 2017 and the prospects into 2018 and beyond remain good.

With increasing levels of regulation having triggered a transition from a voluntary-based risk management approach to mandatory testing services, an evolving regulatory landscape will continue to generate new opportunities for firms – matching their clients’ needs.

Consumers expect more choice, lower prices, and better quality – hence, the trust provided by certification is increasingly important, even more so with the proliferation of social media and the speed of information sharing. Whilst the rise in conscious consumerism puts pressure on brands to protect and enhance their reputations, this should be seen as an opportunity to further drive growth within the sector.

Whilst M&A has seen more challenging times resulting in some of the biggest players scaling back their acquisitions, second-tier firms are driving an active M&A scene. Emerging countries such as China are presenting significant opportunities in the food, consumer, agriculture and automotive markets so it’s up to multinational TIC operators to make the most of these new acquisition possibilities.