Testing Times – TIC 101 Index 2017

In our last review of the TIC sector (which we called TIC-TOCK), we identified several emerging trends, such as the superiority of focus over pure scale and the changing basis of competition, with implications for both organic growth and M&A priorities.

These trends have since been borne out in the performance and stated strategies of major players – and our latest study shows that the divergence between winners and losers has further increased.

The fundamental attractiveness of the sector for players and investors remains high, but the market is changing rapidly:

• Customer expectations continue to escalate
• End-sector growth remains highly variable, with former star areas encountering significant head winds
• Competitive lines are becoming increasingly blurred
• Emerging markets cannot be ignored
• No-one is immune from digital disruption
• Consequently, we are seeing a dramatic increase in the number of players with falling revenues.

In this review, we discuss the winning formula that we believe should be deployed in the face of this rapid change, and the importance of thinking about the ‘end game’ in order to future-proof your business.