2. Imports and Exports
Information in this section is derived from two different areas:
- IT hardware import and exports are measured at the border by the Customs Department as goods leave or enter the country by calendar years and provided by Statistics New Zealand (Statistics New Zealand 2000a);
- A survey of IT businesses is conducted by Statistics New Zealand which measures both IT hardware and software exports (Statistics New Zealand 2000b).
The survey, now in its sixth year, is sponsored by the Ministry of Economic Development, the Information Technology Association of New Zealand (ITANZ), Tradenz, and Statistics New Zealand. The survey asks all businesses for information as at their previous annual balance date, with a cut-off of 30 September each year. The average balance date in each sample is therefore assumed to be March.
From 1998, the survey has attempted to provide better coverage of activity than previous surveys by including business units where IT activity is a secondary activity. This lead to some increase in the figures for 1998 and 1999 over previous years as firms not previously covered are now included. The survey does not cover IT businesses with two full time equivalent staff or less, which will tend to cause the survey to underestimate the actual export figures.
Note that information from the two sources (Customs and the Statistics New Zealand survey) cannot be directly compared because of differences in the accounting year, differences in the treatment of export costs such as freight and insurance, and restrictions imposed by the sample used for the survey.
The lower level of the New Zealand dollar in 1999 compared with 1998 and, particularly, earlier years would be expected to have a major influence in both imports and exports.
2.1 Hardware Imports
Figures 2.1.1 and 2.1.2 summarise New Zealand IT hardware imports for the last decade, based on Customs figures (Statistics New Zealand 2000a). The 1999 year shows a 23.2% overall increase in IT hardware imports from 1998 (compared with a 10% increase the year before), comprising 11.2% for Computing Hardware and Parts, 31,8% for Telecommunications Hardware and 46.7% for Wireless Communications Hardware.
Figure 2.1.1 IT related hardware imports by type
The information in the previous figure is reproduced in Figure 2.1.2 subdivided by source, showing that the bulk of IT hardware imports come from Asia and North America. Between 1995 and 1997 there was a decline in IT hardware imports from North America with small increases in each of the past two years (3% in 1999). Imports from Asia increased by 28% in 1999. Imports from Australia increased by 21%, from Europe by 58%, and from the "Rest of the World" by 39%.
Figure 2.1.2 IT related hardware imports by source
2.2 Hardware Exports
The following three figures show export figures based on Customs data (Statistics New Zealand 2000a), by calendar year.
Figure 2.2.1 shows a summary of New Zealand IT hardware exports since 1990. The steady growth in exports (averaging 25% per year from 1990 to 1997) began to tail off in 1998 (8% growth), and has fallen for the first time in a decade in 1999, by just over 8%. The export value of Computing Hardware and Parts fell by 16% and Telecommunications Hardware by 29%, while Wireless Communications Hardware, which comprises 62% of the total value of IT hardware exports, grew by just 2%.
Figure 2.2.1 IT related hardware exports by type
Figure 2.2.2 shows just the contribution of Computer Hardware and Parts. This category has shown strong growth from 1990, averaging about 36% increases per annum to 1998, with a 30% increase in 1998 over 1997. In 1999 however, there was for the first time a sharp drop of 16% over 1998 exports.
Figure 2.2.2 Computer hardware and parts exports
In Figure 2.2.3, 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 (22%) and Europe (36%), partly offset by a 39% rise in exports to North America and more modest increases of 3% to Australia and 2% to the Rest of the World. Exports to Australia have increased steadily throughout the decade apart from a fall in 1996. Exports to Europe have also increased steadily since 1990, the fall in 1999 only partly offsetting a huge 84% increase in 1998. There has been quite wide fluctuation in levels of exports to Asia and North America over the period.
Figure 2.2.3 IT related exports by destination
Figure 2.2.4 is based on the 1999 Statistics New Zealand survey of IT firms (Statistics New Zealand 2000b). The value of hardware exports was found to be $272 million for the 1999 financial year, slightly down from $281 million in 1998. Note that these data are not directly comparable to the IT hardware export data captured at the border, and given earlier in this paper (for example, Figures 2.2.1 and 2.2.2). The figures do, however, follow similar trends. Figure 2.2.4 shows an average annual increase from 1994 to 1998 of 25% per annum but a decrease of 3% in 1999.
Figure 2.2.4 IT hardware exports
Note: Figure for 1994 combines both categories
2.3 Software and Services Exports
The information in this section is taken from the Statistics New Zealand survey of IT firms (Statistics New Zealand 2000b). Except for a drop in Software exports in 1997, both software and services have increased rapidly over the period of the survey, with an increase of 56% in 1998 over 1997, followed by a further 44% increase in 1999.
Figure 2.3.1 Software and services exports
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