The many benefits that standards bring to the private sector include :
▸Reduction in production and transaction costs : This is achieved mainly through variety reduction and rationalization of processes leading to economies of scale. An additional benefit is that a broader choice of sub-suppliers of components and sub-assemblies is possible, all complying with the set standards;
▸Increased market opportunities : Many goods in numerous markets have become standardized. Hence, compliance with such standardized goods provides the manufacturer with the opportunity to access more markets, instead of being limited to one where a different standard is expected;
▸Competitive positioning : Being involved in standards development allows manufacturers and suppliers to anticipate market developments. Progressive companies leading technological developments in the marketplace, may see their company standards become the basis for national or even International Standards, further enhancing their position in the market; and
▸Improved risk management : The risks associated with the introduction of technical regulations or the introduction of new technologies can be mitigated by the appropriate use of standards. Technical regulations based on known, proven standards lower the risk of non-compliance when a new technical regulation is published. The introduction of new technologies in the marketplace brings about inevitable costs ; however, these costs can be shared with other manufacturers if the new technology is codified in standards that everybody can use.