2. Imports and Exports
IT hardware imports and exports are given under three categories: Computer Hardware and Parts, Telecommunications Hardware, and Wireless Communications Hardware.
The hardware import and export figures given here are measured at the border by the Customs Department as goods leave or enter the country. Calendar years are used in these figures.
The Software and Services Export section uses a different methodology - a survey of businesses - so its results are not directly comparable with the hardware figures given below.
2.1 Hardware Imports
The following chart shows a summary of New Zealand IT hardware imports for the last seven calendar years. It is clear from the chart that following a gradual decline to 1991, there was continuing growth in IT imports until 1995. However, in 1996 there has been a decline in overall imports of 7% to $1.7 billion, due to a fall in imports in both the Computer Hardware and Parts and Wireless Communications Hardware categories. Only in the Telecommunications Hardware category was there any growth in 1996 and this was of the order of 2%.
IT related Hardware Imports by Type
| | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 |
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| Computing Hardware and Parts | 624 | 636 | 691 | 741 | 923 | 1,034 | 968 |
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| Telecommunications Hardware | 353 | 302 | 288 | 266 | 307 | 436 | 446 |
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| Wireless Communications Hardware | 233 | 233 | 279 | 297 | 373 | 424 | 337 |
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The information in the previous chart is shown below split by import source, showing that the bulk of IT hardware imports continue to come from Asia and America, despite a decline in imports from both areas in 1996. IT hardware imports from Asia fell by 10% from their 1995 level and imports from America were down 8%. Imports from Europe also declined by 7%, while imports from Australia and the rest of the world increased.
IT related Hardware Imports by source
| | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 |
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| Rest of World | 13 | 9 | 12 | 10 | 11 | 15 | 17 |
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| Asia | 496 | 497 | 564 | 619 | 769 | 881 | 792 |
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| Europe | 201 | 148 | 161 | 116 | 167 | 224 | 209 |
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| North America | 398 | 422 | 438 | 490 | 562 | 677 | 625 |
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| Australia | 102 | 95 | 83 | 68 | 94 | 97 | 109 |
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2.2 Hardware Exports
The following chart shows a summary of New Zealand IT hardware exports for the last seven calendar years.
IT related Hardware Exports by Type
| | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 |
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| Computing Hardware and Parts | 6 | 7 | 10 | 17 | 21 | 22 | 37 |
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| Telecommunications Hardware | 20 | 10 | 6 | 24 | 31 | 49 | 32 |
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| Wireless Communications Hardware | 22 | 38 | 60 | 65 | 82 | 82 | 95 |
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The 1996 year shows a continuation of the sustained increase in export value that has occurred over this period. The growth has come from strong rises in exports of Wireless Communications Hardware (a 16% increase in 1996, following no growth in 1995) and Computer Hardware and Parts (a 37% increase in 1996, following a 5% increase in 1995. However, the Telecommunications Hardware category appears quite volatile from year to year. After decreases in 1991 and 1992, exports of telecommunications equipment increased from 1993 through to 1995, before decreasing in 1996 by 35%, clearly seen in the graph above.
While IT hardware exports have continued to grow over the last seven years, IT hardware imports have also grown over the same period, with just a small fall in 1996, and so the total value of the imports is still larger than the value of the exports by a factor of 10.
The growth of exports and decline in imports suggests the domestic IT industry is better able to meet local IT needs.
The previous chart refers to three categories of IT related hardware exports; the next one shows just the contribution of Computer Hardware and Parts:
Computer Hardware and Parts Exports
| | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 |
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| Computing Hardware and Parts | 4 | 7 | 10 | 17 | 21 | 22 | 37 |
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The export of Computer Hardware and Parts increased steadily to 1992, then more than doubled from $10 million to $21 million in 1994. Following slow growth in 1995, 1996 was a year of strong growth of 68% to $37 million. Exports of this category of IT hardware now make up 23% of all exports of IT hardware.
Below the IT hardware export information is shown below split by export destination:
IT related Hardware Exports by Destination
| | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 |
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| Rest of World | 6 | 10 | 11 | 19 | 24 | 27 | 30.5 |
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| Asia | 7 | 13 | 12 | 31 | 34 | 15 | 49 |
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| Europe | 7 | 9 | 13 | 13 | 15 | 25 | 27.5 |
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| North America | 4 | 5 | 10 | 12 | 13 | 38 | 20 |
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| Australia | 24 | 20 | 29 | 30 | 46 | 48 | 37 |
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Following a re-alignment of trading partners in 1991-1993, with exports to North America and Asia gaining ground strongly, there was strong growth in 1994 across all trading partners. In 1995 exports to Asia declined sharply but bounced back in 1996 to $49 million from $15 million, a 227% increase. In 1996, exports to North America and Australia fell by 47% and 23% respectively, while exports to Europe and the rest of the world increased by 10% and 13% respectively.
2.3 Software and Services Exports
The information in this section is taken from a survey of IT businesses conducted by Statistics New Zealand and now in its third year. The survey was sponsored by the Ministry of Commerce, 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 might reasonably be assumed to be March.
The survey has two specific limitations. Firstly it does not include "embedded software" - ie software which is part of a hardware product such as a communications system or a washing machine. Secondly it does not comprehensively cover non-IT businesses or IT businesses with 2 full time equivalent staff or less. Both of these limitations tend to cause the survey to underestimate the actual export figures.
Software and services have not been separated due to the difficulty of accounting for software maintenance revenue.
Software and Services Exports
| | 1994 | 1995 | 1996 |
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| Software and Services Exports | 75.8 | 101.7 | 121.7 |
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The survey finds software and computer services exports were $121.7 million in the 1996 financial year, a 19.8% increase from the 1995 figure of $101.6 million. The 1995 figure has been revised very slightly from last year’s issue of this paper due to re-classification of income by some firms.
The survey also finds a total hardware export figure of $170 million, down slightly from the 1995 figure of $176 million. This is not directly comparable to the IT hardware export figures captured at the border and given earlier in this paper because of: differences in the accounting year; the exclusion of export costs such as freight and insurance; and the aforementioned restriction of the survey to IT related firms with at least 2 staff members.
It should also be noted that a number of revisions were made to the 1995 survey data when the 1996 data was presented due to more accurate information becoming available. In some cases, the original survey responses were inconsistent with company accounts. Additionally, improved information about non-respondent companies became available. The data for non-respondent companies is imputed based upon the experience of similar responding firms at the time of the survey. These revisions make direct comparisons between the figures used here with the 1995 figures published in last year’s paper not possible.
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