The economic benefits of standardisation to New Zealand
In today's increasingly complex and connected world, the role of Standards is more important than ever. Standards and standardisation span all aspects of our economy and society, creating confidence, protecting people, and ensuring the smooth flow of local and international trade, while reducing risks. Read about the economic benefits of Standards and standardisation below.
Standards can raise GDP by 1% – New Zealand video and research
Research* carried out by Business and Economic Research Limited (BERL) in 2011 reveals that a more coordinated approach to Standards development could lift New Zealand's gross domestic product (GDP) by up to 1% or $2.4 billion.
Video – Standards Council Chair, John Lumsden
Standards Council Chair John Lumsden discusses a more coordinated approach to Standards development by the Standards Council to harness the full potential of standardisation. Watch the video.
Research – Feedback on Standards benefits from the building sector
BERL interviewed industry representatives about the following Standards to examine the benefits of a Standard from the perspective of the building sector.
- NZS 3910:2003 Conditions of contract for building and civil engineering construction.
- NZS 4246:2006 Energy efficiency – installing insulation in residential buildings.
BERL's interviews include the following feedback.
Standards help businesses to allocate and manage risk – NZTA and MWH
'New Zealand Transport Agency spends approximately $1.5 billion per annum in the horizontal construction sector, and two-thirds of this spend involves contracts using NZS 3910. As a stakeholder in this sector we have a big interest in ensuring our contracts are fair and reasonable, that there is a clear allocation of risk, and that the risk is appropriate in regards to the supplier and client. The Standard helps in terms of risk allocation, and being fair and reasonable.'
Richard Quinn, Project Services Manager, New Zealand Transport Agency (NZTA)
'NZS 3910 does not decrease the risk but makes it clear who carries the risk, who is in control and who has to mitigate the risk. The key things the Standard does is that it says, once the project starts, most things that happen are at the contractor's risk. They are on-site and know the business of construction, so a Standard like that passes the care of the works to the contractor but it can't pass all that risk. There are certain things that the principal must carry – the accepted risks – things like the design works and decisions about the materials that will be used. The principal carries this risk as they made that decision. These risks also include things that the contractor can't take out insurance to protect themselves from. Those care of the works provisions are a large part of the Standard.'
Andrew Bricknell, Director of Project Management Asia-Pacific, MWH
Standards set best practice guidelines and requirements for industry – InsulPro Manufacturing Limited
'Prior to the Standard, NZS 4246:2006, there were no guidelines about how to install insulation, so while there were set requirements in terms of certain levels of energy efficiency, there was no Standard in terms of the process that you go through to install the insulation to meet that level. BRANZ had done research in this area but their guidelines at the time were more focused on new homes and putting insulation into new buildings. The Standard was a huge leap for the industry, and it led to a lot of re-thinking in terms of installation practices.'
Gleb Speranski, Head of Sales and Marketing, InsulPro Manufacturing Limited
Standards help the industry to work together – Insulation Association of New Zealand
'When people were brought together to develop the Standard we realised there was no industry body, so the Insulation Association of New Zealand was formed as a part of developing NZS 4246:2006. It was relatively easy for us to form this strategic alliance and set benchmarks as an association due to the Standard being core to what we do. We knew we had to collectively lift the game and work together to do this.'
Godfrey Hall, President, Insulation Association of New Zealand
Standards help to increase product quality – Energy Efficiency and Conservation Authority
'Between July 2009 and March 2011, 91 506 households have taken advantage of the home insulation and heating scheme. At least 10% of these households have been audited. There has been a huge increase in the quality of the installation of the insulation due to training by the Insulation Association of New Zealand related to NZS 4246:2006.'
Tim Mahar, Senior Technical Advisor, Energy Efficiency and Conservation Authority
A robust Standards development process supports the industry – New Zealand Contractors' Federation
'I am very supportive of the Standards process and think it is robust. Every single clause of NZS 3910:2003 was reviewed word-by-word by the entire committee, and that committee represents a range of stakeholders. That process takes time and adds to the cost of developing the Standard, but it is a very important process and it is what makes the Standard robust.'
Malcolm Abernethy, Executive Officer, New Zealand Contractors' Federation
*Business and Economic Research Limited (BERL) Report to The Standards Council of New Zealand and The Building Research Association of New Zealand, 'The economic benefits of Standards to New Zealand', August 2011.
Read the full BERL report, The Economic Benefits of Standards to New Zealand [PDF 1 MB].
How Standards help New Zealand businesses
These articles look at how Standards help New Zealand organisations to trade locally and internationally, reduce costs and risks, and increase the quality of the goods and services produced.
Proving the economic benefits of Standards – ISO case studies
A series of case studies by the International Organization for Standardization (ISO) on 11 companies show that implementing Standards can provide economic benefits from between 0.5% and 4% of their annual sales revenues. Read more.
Download the case studies:
The benefits of international Standards – ISO videos
International Organization for Standardization (ISO) Standards help to make the world a safer, cleaner, and more efficient place. A series of short ISO videos below communicate the benefits that international Standards provide.
General public video
ISO Standards help to make the world a safer, cleaner, and more efficient place – from food safety to computers, and from healthcare to new technologies. Watch the video.
Business and government video
Today's world is full of challenges: for business, government, and society. Chief Executive Officers use ISO Standards as practical tools to achieve their business objectives, and ISO Standards provide governments and regulators with vital technical support. Watch the video.
Energy management video
Developing international Standards for energy management is a priority for ISO because of the significant potential to save energy and reduce greenhouse gas (GHG) emissions worldwide. Watch the video.
ISO Standards offer practical tools to monitor climate change, quantify greenhouse gas (GHG) emissions, promote good practice in environmental management, and open world markets for energy efficient technologies. Watch the video.
Food safety video
ISO's food safety Standards ensure the safety of food along global food chains and benefit producers, manufacturers, regulators, retailers, and consumers. Watch the video.
Caring for us and our loved ones needs so many aspects to meet high Standards. ISO's healthcare Standards provide a world of solutions for manufacturers, regulators, healthcare professionals, and patients. Watch the video.
Note: Standards New Zealand is New Zealand's representative for the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), and ensures that New Zealand has a voice in the international Standards community.
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World Standards Day – International Standards create confidence globally
The annual day to celebrate Standards globally is 14 October. Last year's World Standards Day on 14 October 2012 was themed 'Less waste, better results, Standards increase efficiency'. International Standards are powerful tools for helping organisations capitalise their potential in the global marketplace. Developed by experts from around the world, they contain internationally harmonised best practice, which can be used to measure, compare, and increase efficiency and reduce waste.