$9 billion and counting as NZ tech exports shift up a gear
- 29 October, 2015 06:06
New Zealand’s technology export sector has shifted up a gear with record growth of $609 million (7.3 percent) to combined revenues of nearly $9 billion for the 200 companies listed in the 2015 TIN100 Report.
Findings report that strong growth was seen in all major export markets, across all major industry sectors and translated to growth for the tech economy across all regions of New Zealand.
These are some of the key findings of the eleventh annual TIN100 Report, an analysis of the performance of the top 200 New Zealand-founded high-tech companies which monitors the performance of exporters in the areas of Information and Communication Technology, high-tech manufacturing and biotechnology.
“Although macroeconomic factors played a significant part in the performance, much of the success can be attributed to the hard work and ambition of the companies themselves,” says Greg Shanahan, Managing Director, TIN.
“There is a very sophisticated ecosystem operating in New Zealand now with companies conscious of what the key success drivers are, and eager to pioneer best practises to achieve market leadership.”
Shanahan says the increasing strength of the sector can be witnessed in its broad based global performances with continuing growth in New Zealand and the US to be expected.
That said, Shanahan was quick to point out that TIN100 companies grew strongly in the Australian and European markets also with exports rising by 7.5 percent to $6.5 billion.
During 2014/15, TIN100 companies increased their combined revenue by 7.5 percent to $8.2 billion with export revenues increasing by 7.5 percent to $6.05 billion.
Shanahan says the next 100 companies ranked by revenue grew by 5.6 percent to $754 million with exports of $492 million, up 8.2 percent.
“A highlight of the TIN100 Report was the dramatic growth of companies in the Financial Services Technology Sector, the fastest growing sector in both percent and dollar terms,” Shanahan adds.
According to Shanahan, 11 companies grew revenues by $129 million (58 percent) while six of the twenty high growth companies in the EY Ten companies to Watch and ASB Hot Emerging Companies announced in September were Financial Services Technology companies.
“These companies demonstrate the rapid scalability and growth possible with Software-as-a-Service (SaaS) and cloud-based solutions,” Shanahan adds.
“New funding opportunities, investment in innovation, scalable business models and compelling company cultures that attract talent, are forming a potent mix that should see continuing growth for the foreseeable future.”
Shanahan says there were 13 public listings for TIN200 companies since 2013, more than the previous 10 years.
The capital available from new and established publicly listed companies; and the rise in US investment; has enabled companies to pursue high growth strategies with heavy increases in R&D and Sales and Marketing spend - total R&D spend by TIN200 companies is approaching $1 billion.
For Shanahan, all of this means more jobs with employee numbers growing by 2,410, to over 37,000 staff.
“Whilst technology exports aren’t about to knock dairy exports off its perch just yet; watch this space,” Shanahan adds.