The global testing, inspection & certification (TIC) industry will likely outgrow Moodys G-20 GDP forecasts of 2.8% thereby underpinning its credit quality into 2022, Moodys Investors Service said today in a new report. TIC companies provide quality control services for sectors ranging from agriculture and autos to medical and commodities.
The growth will be supported by several ongoing global structural trends, including continued economic and population growth in emerging markets, which has swelled the middle classes and raised expectations for product quality and safety standards.
Another key trend is the increasing complexity and globalisation of supply chains with businesses focused on meeting required standards and regulations to maintain product quality. This together with sustainability considerations plays an increasing role in brand reputation management.
“The biggest sectors served by the TIC industry, like consumer goods, retail and agri-food, will be affected by some or all of these major structural trends, and the demand for TIC services will grow accordingly,” said Lucia Lopez, a Moodys Vice President – Sensaid Lucia Lopez, a Moodys Vice President – Senior Analyst.
M&A activity continues to grow in the sector, largely bolt-on acquisitions to enhance in-house TIC capabilities, as an attractive alternative to large capital spending and investment.
