New Zealand technology sector passes $7 billion revenue mark
- 29 October, 2011 22:00
New Zealand technology companies had a five percent increase in revenue in 2011 and passed the $7 billion revenue mark for the first time, according to the seventh annual TIN100 report that the Technology Investment Network (TIN) has just released. According to Greg Shanahan, publisher of the annual report, the result would have been seven percent “if not for the currency effects on US markets” but, still, it shows “difficult but exciting times for the technology sector”.
The technology sector is now New Zealand’s second biggest exporter, behind dairy.
“This year, exports grew by four percent to over NZ $5 billion and shows further growth potential. New Zealand companies across the board were able to exploit growth opportunities, particularly across the Tasman where Australian revenues grew by 10 percent,” says Shanahan. “Whilst Asia is also growing well, it is Australia where the current volume is.”
According to the report, a total of 30 percent of TIN100 companies have revenues of over NZ$50 million for the first time and the group of companies with revenues between $50 and $100 million grew by 15 percent during the year.
“This is evidence of a maturing sector increasingly defined by larger, more capable companies,” adds the publisher.
According to Shanahan, the growth is expected to continue.
The strongest dollar growth was seen in the IT Services and Support areas, with revenues growing by 11 percent, followed by Healthcare, which passed the $1 billion revenue mark.
The report also shows that TIN100 companies are spending money where it counts as CEOs focus on growth and profitability. Research and Development spend, for example, grew by 15 percent across the year for the TIN100 and employment in Research and Development jobs grew by 16 percent for all 200 companies.
Fisher & Paykel Appliances tops the list of companies with the highest revenue in 2011, with a reported $1,120,843. The Datacom group takes the second spot with $725,186 of revenue for 2011.
This year’s report also include a top 10 of companies to watch and the Datacom Group topped the list.
The report was produced in association with IRL (Industrial Research Ltd) and sponsored by New Zealand Trade and Enterprise and the Ministry of Science and Innovation.