Press Release

ETQ State of Quality Management Study Finds Quality Shifting from Operational Compliance to Strategic Business Driver, Delivering Significant Return on Investment

Good Quality Adding an Average of 11 Percent to Organizations’ Revenue Growth

BURLINGTON, Mass. — April 14, 2020: ETQ, the leading provider of quality management solutions, today released findings from a first-of-its-kind research study – The State of Quality Management: 2020. According to the survey, companies are investing more in quality as a strategic business growth initiative that brings a significant return on investment (an average 23 percent). The report also finds that poor quality is costing organizations $49M per year on average.

ETQ commissioned the comprehensive study to uncover key trends and insights about quality management today and how it may evolve in the near future. Based on a survey of senior-level quality stakeholders in life science, food & beverage and manufacturing firms, the study found that good quality is adding an average of $156M, or 11 percent to bottom-line revenues (based on average surveyed company revenue of $25M to $1B-plus). On the other hand, the high cost of poor quality is attributed to sweeping product recalls, with 96 percent of respondents experiencing a recall in the last five years.

Results of the survey will be discussed during a live webinar today (April 14) at 2:00 p.m.ET — The Rise of Quality as a Strategic Business Initiative. It will be presented by ETQ leaders and industry experts, along with findings from a separate informal ETQ survey concerning the business and quality process impacts of COVID-19. To register, visit the ETQ website.

“The results from The State of Quality Management: 2020 are eye-opening on many levels and reinforce the financial impact quality has on corporate performance,” said Rob Gremley, CEO, ETQ. “As the survey shows, companies committed to quality as a strategic business driver benefit from stronger customer loyalty, less costly product recalls, competitive differentiation, and ultimately, stronger revenues.”

Quality’s Impact on Business Performance
The State of Quality Management survey was completed in January 2020 and uncovered other trends in organizations’ quality spending plans.

Product Recalls and Supply Chain Management
Product recalls are widespread and occurring at an increasing rate for a large share of organizations. Recalls affect all aspects of an organization in terms of costs and damage to brand reputation and customer loyalty.

The study also found that while organizations are monitoring supplier quality, they frequently need to replace suppliers because of quality concerns.

The Quality Performance Perception Gap
According to the survey results, there is also a quality performance perception gap between CXOs and quality management:

This discrepancy could be attributed to the fact that CXOs are mostly focused on the big picture and not dealing with the day-to-day challenges of enforcing a quality program.

About the Survey Methodology
The State of Quality Management: 2020 research report was prepared by Salloway & Associates for ETQ to inform the life sciences, food & beverage and manufacturing industries on the state of the quality management market. As part of the comprehensive report, the company completed a total of 300 online surveys, from Nov. 2019 to Jan. 2020, among a broad cross-section of U.S. decision-making stakeholders of quality management programs in those industries. It included CXO management, quality or supply chain managers and IT managers that support quality and supply chain functions within mid-market ($100M – 500M) and enterprise-level organizations (above $500M).

Click here to reserve your copy of the eBook: The Rise of Quality as a Strategic Business Initiative: 2020 which will be released later this week.

About ETQ

ETQ is the leading provider of quality, EHS and compliance management software, trusted by the world’s strongest brands. More than 550 global companies, spanning industries including electronics, heavy industry, food and beverage, and medical devices, use ETQ to secure positive brand reputations, deliver higher levels of customer loyalty and enhance profitability. ETQ Reliance offers built-in best practices and powerful flexibility to drive business excellence through quality. Only ETQ lets customers configure industry-proven quality processes to their unique needs and business vision. ETQ was founded in 1992 and has offices located in the U.S. and Europe. To learn more about ETQ and its various product offerings, visit

Media Contact:

Chris Nahil
781-488-5050 ext. 648

Linda Pendergast-Savage
Pendergast Consulting