By September 14, 2018, all ISO 9001:2008 and ISO 14,001:2004 companies will have transitioned to ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System).
This is a big deal in the standards world. These standards are among the best selling standards in the world impacting more then 1.6 million certified companies.
ISO 9001 maybe the best selling and utilized standard in the world used by more than 1.2 million companies and estimates point to another 400,000 companies using it internally.
The disruption
The transition deadline is less than two months away. The transition has not been easy for many companies. Why? New standards have been reorganized, reframed, and incorporate new risk requirements. Too much, too soon for many companies.
We have skin in this game. We believe the future of the quality and ISO markets involve risk management. We’ve been evangelizing this for almost 20 years.
So what’s happening to the ISO market?
We have talked with consultants, standards developers, certification bodies, and many others about the state for The ISO market. Many don’t know. Some don’t want to discuss it. Some disbelieve its collapsing. Some are in denial.
When ISO announced the dates of the transition from the old standard to the new standard, many of us thought it would about 90%. However, depending upon the country we’re hearing that the transition numbers are anywhere from 30% to 80% depending on the country and sector. We hope that the ISO market is not collapsing.
We found some number from Persistence Market Research Firm:
“The global ISO certification market is valued at about US$ 11.8 Billion in 2017. The global market has witnessed a negative CAGR and is poised to reach a valuation of around US$ 2.8 Billion by the end of 2025. The huge volume of re-certification during the timeline 2017-2018 and huge renewal of certifications during the year 2023-2024 is the main reason for the market to show a negative CAGR (compound annual growth rate).”
In other words, the research firm predicts that the ISO market will shrink by more than 75% over the next 8 years. The low transition numbers may be the beginning of the collapse of the ISO market.
Key Stakeholders
Certified companies that are dropping their certifications will self certify. This and second party risk assurance audit are cheaper, provide higher assurance, and provide higher value to all stakeholders.
Consultants and trainers will need to learn risk management, risk assurance, and new risk skills.
The Certification Bodies starting next year will have to look for new revenue sources such as providing business assurance and risk assurance.
Bottom Line: It’s a whole new ISO world right now.
Bio:
Greg Hutchins PE and CERM (503.233.101 & GregH@QualityPlusEngineering.com) is the founder of:
CERMAcademy.com
800Compete.com
QualityPlusEngineering.com
WorkingIt.com
He is the evangelist behind Future of Quality: Risk®. He is currently working on the Future of Work and machine learning projects.
He is a frequent speaker and expert on Supply Chain Risk Management and cyber security. His current books available on all platform are shown below:
