In 2023, the TIC industry was valued at a staggering $250 billion, yet despite its immense impact on consumers, most people have never even heard of it.
The Testing, Inspection, and Certification (TIC) industry is a powerhouse behind the scenes, ensuring that everything we interact with—be it the food we eat, the appliances we use, or the buildings we work in—meets stringent safety, quality, and regulatory standards. While the industry may not be a household name, its impact is undeniable and increasingly vital in today's rapidly evolving world.
What Does the TIC Industry Do?
At its core, the TIC industry comprises three essential functions:
Testing: This involves assessing products, materials, and systems to ensure they meet specific standards or performance criteria. For instance, food testing ensures that what you consume is free from harmful contaminants, while electronics are tested for safety and functionality before reaching consumers.
Inspection: Inspection involves the examination of products, equipment, or facilities to verify their condition, conformity to standards, and suitability for use. Think of the structural inspection of a bridge to ensure its safety or the inspection of manufacturing facilities to ensure they comply with safety regulations.
Certification: Certification is the process of verifying that a product, system, or person meets the required standards. A familiar example is the CE mark on electronics, indicating they meet EU safety, health, and environmental protection requirements. ISO certifications, like ISO 9001 for quality management systems, are also a key aspect of certification.
Stacey Varsani, Founder and Principal Consultant of Hadouken Consulting, describes the TIC industry as one that "tests, inspects, and certifies everything around us—from food, clothing, furniture, and appliances to minerals and automobiles—for safety, quality, and compliance to regulations."
Why is the TIC Industry So Important?
The significance of the TIC industry extends far beyond the processes of testing, inspecting, and certifying. Its importance lies in the essential roles it plays in various aspects of our lives and the global economy:
Facilitating Global Trade: In a globalized economy, meeting the import and export requirements of different countries is crucial. TIC companies play a vital role in facilitating trade by ensuring that products meet the necessary standards, thus preventing costly delays and rejections at borders.
Building Trust with Consumers: In an era of increased consumer awareness, trust is paramount. TIC certifications and inspections provide consumers with confidence that the products they purchase are safe, reliable, and compliant with regulations. "Even though these companies have billions in revenue and collectively hundreds of thousands of employees across the globe, many people outside of the industry haven’t heard of them," says Varsani. Yet, their work is integral to building consumer trust.
Helping Corporations Meet ESG Targets: Environmental, Social, and Governance (ESG) criteria are increasingly important to investors and stakeholders. TIC companies assist corporations in meeting these targets by ensuring that their operations and products adhere to sustainable and ethical standards.
Ensuring New Technologies and Materials are Safe: As innovative technologies and materials emerge, ensuring their safety is paramount. The TIC industry is at the forefront of testing and certifying these innovations, helping to mitigate risks and promote safe adoption.
Supply Chain and Risk Management: In today’s complex supply chains, risk management is crucial. TIC companies help businesses identify and manage risks, ensuring supply chain traceability and reducing vulnerabilities. This is especially critical in the context of trends like nearshoring and the China+1 strategy.
Varsani emphasizes that "TIC companies can help corporations navigate these challenges and ensure supply chain traceability."
Conclusion
As the world becomes more interconnected and complex, the role of the TIC industry is becoming increasingly important and higher profile. From ensuring the safety and quality of the products we use every day to helping businesses navigate regulatory challenges and meet ESG targets, the TIC industry is a critical, albeit often overlooked, pillar of the global economy.
At Hadouken Consulting, we don’t believe in sitting in a conference room, producing a strategy deck, and leaving the client to get on with it. Instead, we embed within our clients’ businesses, to help solve problems from the inside out and ensure successful handover and implementation. As the industry continues to grow, the work of TIC companies—and the support we provide—will only become more essential.
Get in touch today to find out how we can help your business navigate the complex world of TIC.
Comentarios