TIN100 2011 Report

Welcome to the 7^th edition of the TIN100 Report. The 2011 TIN100 Report is produced in association with Industrial Research Limited (IRL) and sponsors New Zealand Trade and Enterprise (NZTE) and the Ministry of Science and Innovation (MSI). The report has become a critical reference for benchmarking the performance of New Zealand’s 200 largest globally focussed technology companies. This year we have also included information on a sample of 50 mostly publicly listed Australian technology companies.

To be included in the NZ TIN100 Report, companies must be: in one of three primary sectors, ICT (IT Service and Support and Software Development), High Tech Manufacturing or Biotechnology; have originated in NZ; have a minimum of 10% of their revenue outside of New Zealand; and have a minimum revenue threshold. The TIN100 Report is a piece of quantitative market research and therefore we seek to include all those companies who qualify, not simply those who wish to be included.

In recent years the profile of the TIN100 Report has grown considerably. It enjoys growing use by decision makers and is frequently referred to in the media. We are also fortunate to receive ever increasing buy in from the companies themselves enabling us to gather more reliable and more detailed information.

The collaboration on the TIN100 Report is a sign of growing cooperation across the technology industry in general, as government, private enterprise and research and academic institutions seek to work together more effectively to generate economic growth.
The world is up for grabs. This is a difficult but exciting time for the technology sector. Following a decline in revenue in 2010 TIN100 companies bounced back with a 5% growth in 2011. This would have been around 7% if not for the impact of the NZ$/US$ currency rise on TIN100 US revenues. This currency effect had a greater effect on large Hi Tech manufacturers who are more exposed to the US market.

Bearing this in mind NZ companies across the board were able to exploit growth opportunities in Australia in particular. The NZ TIN100 is rapidly growing its Australian footprint and for this reason we have increased our focus on Australia and their technology companies. Favourable currency movement, ease of market access, cost and risk make Australia an attractive vehicle to increase scale in an unpredictable international environment. Asian sales also showed promising growth off a smaller base.

Our enthusiasm for the technology sector is not based on the fact that that technology is cool or elitist. Technology offers the opportunity develop solutions that simultaneously add value and reduce cost. This enables businesses to achieve efficiencies not so dependent on scale, establish a unique market position and enjoy higher gross margins that enable further investment in research and development. It has scalability that agriculture or tourism cannot provide.

It is the absence of scale in a small domestic market that has often forced NZ companies to use technology to secure more efficient cost structures. This early drive for technology enabled efficiencies has put many TIN100 companies in a good position for the Global Financial Crisis (GFC).  It is evident in diverse areas such as Appliance Manufacturing, IT Services and Support, Health IT, Production and Materials Handling Equipment and Financial Service Solutions. New Zealand is benefiting from this in a world that is now struggling under the cost of its own infrastructure.

A common question is “yeah …but where is this all heading?” TIN100 Companies grew by 5% to record revenues of NZ$7B. Exports grew by 4% to over NZ$5B. ICT revenue grew by an impressive 13% for the TIN100 companies. Marketing and R&D spend increased by 4 and 15% respectively and employee numbers increased by 6%. All 200 companies now employ a record 30,000 staff.
Amidst the goods news some signs for concern, a record 9 foreign acquisitions since April 2010 and 4 company failures for the TIN200 companies. This underscores the dynamic nature of the market.

Perhaps the most encouraging statistic is that the number of companies in the index with revenues of NZ$50m & over grew to 30 for the first time. It is evidence of a maturing sector increasingly defined by larger more capable companies.
The potential for further growth remains high, the data points in the right direction. TIN100 companies are expressing their confidence by investing in future growth. Long may it continue.

Thank you to the companies who have provided information for the 2011 TIN100 Report. Accurate compilation of industry statistics in the TIN100 Report provides a critical reference for companies involved in the sector as well as stakeholders, such as investors, government decision makers and service providers.

Copies of the report are distributed to every NZTE trade office internationally and are widely purchased by stakeholders. Government ministries responsible for economic development are increasingly using the TIN100 Report to strategise interventions.
We have done our best to ensure that the data presented in this TIN100 Report is as accurate as possible. We have invited all companies concerned to verify the data we have presented.  Where companies would not divulge their revenue, we have made estimates based on relevant revenue per employee numbers. Estimated revenues are highlighted in the company profiles.
We believe the information to be correct at the time of print and accept no liability for factual errors.

A special thank you to our new major sponsor IRL and supporting sponsors NZTE and MSI. 
Please enjoy the report and we welcome your feedback.

Regards
 
Greg Shanahan
Managing Director
Technology Investment Network Ltd.
 

About the TIN100 Report

 

The TIN 100 Report is a benchmarking study of the country’s 200 largest (by revenue) technology companies in the areas of High Tech Manufacturing, ICT Software/Services and Biotechnology.

 

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