Published on the 18/10/2017 | Written by Newsdesk
Regions shine, high value jobs created as TIN200 tech companies produce equivalent of 10 percent of New Zealand exports...
The technology sector continues its bull run with news out from the Technology Investment Network that the country’s top 200 technology companies (the “TIN200”) have set a new milestone, recording just over NZ$10 billion in combined revenues with more than NZ$7.3 billion sourced through exports.
The TIN200 companies, ranked by revenue, now contribute the equivalent of 10 percent of all New Zealand exports, highlighting the growing part played by the sector in the economy. This places it third behind the contributions of dairy and tourism as a source of offshore revenue.
Two thirds of the offshore revenue growth can be attributed to an 18.8 percent increase in TIN200 revenues in the North American market.
These are among the key findings of the thirteenth annual TIN Report, an analysis of the performance of the top 200 New Zealand-founded high-tech companies in the areas of Information and Communication Technology (ICT), High-tech Manufacturing and Biotechnology.
The report is sponsored by New Zealand Trade & Enterprise, Callaghan Innovation, Spark, EY and AJ Park.
“This has been a defining year for the TIN 200 companies”, said TIN MD, Greg Shanahan in a statement. “We’ve seen a sustained increase of around 8 percent in both revenue growth and exports but more significantly, the real story is in the integral part that the technology sector now plays in the country’s economy.”
Those who fret that technology is taking jobs take note: TIN200 companies created 4,352 new jobs to employ over 43,000 staff globally with an average salary of just under NZ$84,000. “The broadening economic impact of this growth is creating opportunities throughout New Zealand society,” said Shanahan.
Even better is news of just where that growth is coming from: most is outside of Auckland, with the regions outpacing the country’s commercial hub. This year has seen Hamilton, Wellington and the South Island leading TIN200 growth, adding over 10 percent and collectively accounting for more than 60 percent of total TIN200 revenue growth (but only 40 percent of total TIN revenue).
Additional key findings of this year’s TIN Report include:
- U.S. offshore revenue for the TIN200 increased nearly 19 percent to nearly NZ$2.4 billion. The European market grew 3.1 percent and the Asia market 5.3%
- Healthcare remains the largest secondary sector in terms of revenue for the TIN200 at nearly NZ$1.8 billion
- Companies with over $20 million revenue grew at twice the rate of companies below NZ$20 million. The 90 companies with revenues NZ$20 million and over grew at 8.4 percent, compared to just 3.8 percent revenue growth for the 110 companies with under $20 million in revenue
Copies of the TIN Report are available.
Top 10 Companies by Rank
|2017 Rank||Company||2017 Revenue ($000)||2016 Rank|
|2||Fisher & Paykel Appliances||$1,145,910||1|
|3||Fisher & Paykel Healthcare||$894,400||3|