Calling time on buy and build for scale's sake in the Testing, Inspection and Certification market. The OC&C TIC 101 Index 2015

Testing, Inspection and Certification (TIC) services has been a highly attractive market on the agenda of major investors across the globe. However, growth rates have declined significantly since 2012, with average growth of 11-16%pa dropping down to just 6% in 2014. Oil & Gas and Mining are no longer powering this sector, and M&A is proving increasingly hard to exploit.

Rising customer expectations are a key factor behind who's winning and who's losing. Global Sector Champions are winning, leveraging deep sector knowledge with increasingly demanding customers; Local Leaders are lagging behind as they struggle to serve customers who want to consolidate spend with suppliers who can serve them at a multi-country level. 

Critically, pure scale is no longer a winning proposition. M&A remains important, but increasingly as a route to drive organic growth, by offering an expanded range of capabilities to serve key customers. 

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