SALES ACTIVITY
The total value of the New Zealand IT industry, excluding telecommunications, in the March 2001 financial year was $6,823.6 million, up 3.3% from the previous year. This year figures for telecommunications were not available. These gross figures include an unknown level of double counting of retail and wholesale sales. Consequently, the data used in Figure 1 represents goods and services sold to end users only and, in 2001, excludes $1,989 million reported in the survey as ‘other customer sales’ and $770.2 million reported as “export sales.”
Figure 1. End User Computer Hardware, Software and Services Market, Excluding Telecommunications Services
Total end user sales growth over the past five years has varied between 10.2% (1998) and 1.8% (1999). The last two years (5.3% and 4.0% respectively) are typical, but there has been wide fluctuation in various types of end user sales, with communications equipment and cables increasing by 39% in 2000 and 26% in 2001. Most other areas declined slightly in 2001, except for software (up 19%) which has fluctuated widely over the past five years (max 28% growth in 1998 and min -16% last year).
Table 1. Changes in End User Sales Since 1996 (percent)
HARDWARE
Figure 2 shows a summary of New Zealand IT hardware exports since 1990. The up and down nature of IT hardware exports continued last year with a fall of 10.6% after a rise of 24% the year before. Exports of Computing Hardware and Parts decreased by 3%, Wireless Communications Hardware by 17%, while Telecommunications Hardware exports increased by 6%.
Figure 2. IT Related Hardware Exports by Type
In Figure 3, the total IT hardware exports are shown split by export destination. The fall in 1999 exports was due primarily to large decreases in exports to Asia and Europe, partly offset by an increase in exports to North America. In 2001, there was a 31% decrease in exports to Asia, after a 78% increase the year before. Imports to Europe increased by 5.4% while exports to Asia fell by 30.3% after a 78% increase the year before.
Figure 3. IT Related Exports by Destination
SOFTWARE & SERVICES
Figure 4 shows exports of Software, Communications Services and Computing & Education Services over the past four years. Note that figures for Communications Services were not available this year and were not available prior to 1997.
Figure 4. Software and Services Exports
BUSINESS ACTIVITY INDICATOR
The Business Activity Indicator uses GST data from the Inland Revenue Department matched to the Statistics New Zealand Business Frame. Figure 5 represents sales and purchases for the computer services industry (ANZSIC L783, Statistics NZ 1996) measured quarterly since early 1993. Following relatively little growth through 1995, sales grew steadily except for a pronounced dip over the Y2K transition period between October 1999 and February 2000. Sales increased again throughout 2000 but since early 2001 they have flatted out. The gap between 'purchases' and 'sales' can be regarded as a measure of 'added value.’
Figure 5. Business Activity (GST) Indicator for the Computer Services Industry
Note: all information, including figures are verbatim. 24