TIN100 2009 Report

'The global recession has compounded the difficulties already faced by New Zealand’s technology exporters from a steadily rising currencya volatile NZ$. Despite the economic turmoil this, pockets of strong growth persist' These are some of the findings of the just released TIN100 2009 Report.

The TIN100 2009 Report is a benchmarking study of the country’s 100 largest (by revenue) globally focused technology companies in the areas of High Tech Manufacturing, ICT and Biotechnology. It is published by Technology Investment Network (TIN)

The TIN100 2009 Report in its fifth year, is sponsored by New Zealand Trade and Enterprise and Ernst & Young. Its publication was celebrated last week at an annual dinner for CEOs of these companies in Auckland.

Technology Investmentformation Network (TIN) Managing Director Greg Shanahan said that although industry trends were concerning despite the difficulties he still believed the technology sector had the potential to lead New Zealand’s economic recovery This is partly due to the resilient growth displayed by many companies in the report.

The next 50 companies beneath this years NZ$7.5m revenue cut off point are a new addition.

The dairy sector has export revenues of NZ$8.8b. With TIN100 export revenues of NZ$5.1b the growth potential of the technology sector is far larger and offers the potential to be NZ’s export leader.

Overall industry performance in 2009 was the worst since the monitor started. Iconic New Zealand companies are being severely challenged by the current conditions that threaten to change the face of the industry. TIN100 total revenues of NZ$6.6b were up by only 2% on the previous years NZ$6.5b. Total net profit before tax, for the reports12 public companies was just 1% of sales. Staff numbers by fell by 4%.

As well as the tyrannies of distance, and domestic market size, the ‘tyranny of currency’ is making location in New Zealand, particularly for manufacturers, an increasingly difficult option. At least three companies in the TIN100 Report have announced closure of their NZ manufacturing operations in the past year.

Competitiveness for technology exporters had been eroded by the appreciation of the NZ$ against the US$ in particularthe rising New Zealand dollar and difficulties are now compounded by the global recession.

In the face of all of this the TIN100 2009 Reports “Ten Companies to Watch”, highlighted in a special section, grew combined revenues by 34% or NZ$474million, to a total of NZ$1.8 Billion.

“This demonstrates where the real potential of the sector lies” says Shanahan.
“The fact that these companies can deliver this kind of performance during the worst economic period of our lifetime offers some valuable lessons.”
 

About the TIN100 Report

 

The TIN 100 2009 Report is a benchmarking study of the country’s 150 largest (by revenue) technology companies in the areas of High Tech Manufacturing, ICT Software/Services and Biotechnology.

 

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