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 6 calendar years. Three periods may be seen in the graph: a gradual decline until 1991, a gradual increase until 1993 and rapid growth through 1994 into 1995. Until 1994, the bulk of this growth was in the Computer Hardware and Parts category, but this category is now slowing while the others increase more quickly.
IT related Hardware Imports by Type
| | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 |
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| Computing Hardware and Parts | 657 | 624 | 636 | 691 | 741 | 923 | 1,034 |
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| Telecommunications Hardware | 344 | 353 | 302 | 288 | 266 | 307 | 436 |
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| Wireless Communications Hardware | 242 | 233 | 233 | 279 | 297 | 373 | 424 |
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The information in the previous chart is shown below split by import source, showing that the bulk of IT imports come from Asia and America.
IT related Hardware Imports by source
| | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 |
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| Rest of World | 13 | 13 | 9 | 12 | 10 | 11 | 15 |
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| Asia | 556 | 496 | 497 | 564 | 619 | 769 | 881 |
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| Europe | 135 | 201 | 148 | 161 | 116 | 167 | 224 |
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| North America | 444 | 398 | 422 | 438 | 490 | 562 | 677 |
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| Australia | 95 | 102 | 95 | 83 | 68 | 94 | 97 |
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2.2 Hardware Exports
The following chart shows a summary of New Zealand IT hardware exports for the last 7 calendar years.
IT related Hardware Exports by Type
| | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 |
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| Computing Hardware and Parts | 4 | 6 | 7 | 10 | 17 | 21 | 22 |
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| Telecommunications Hardware | 16 | 20 | 10 | 6 | 24 | 31 | 49 |
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| Wireless Communications Hardware | 23 | 22 | 38 | 60 | 65 | 82 | |
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There has been a sustained increase in export value over this period, particularly in Wireless Communications Hardware.
Both IT hardware imports and exports have grown rapidly over the last few years, but the total value of the imports is still larger by a factor of 10.
The previous chart refers to three categories of IT related hardware exports; the next one shows the contribution of Computer Hardware and Parts:
Computer Hardware and Parts Exports
| | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 |
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| Computing Hardware and Parts | 4 | 6 | 7 | 10 | 17 | 21 | 22 |
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The export of Computer Hardware and Parts increased steadily from 1989 to 1992, then more than doubled from $10m in calendar 1992 to $21m in 1994, then eased back to the pre-1992 growth rate.
Hardware export information is shown below split by export destination:
IT related Hardware Exports by Destination
| | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 |
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| Rest of World | 5 | 6 | 10 | 11 | 19 | 24 | 27 |
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| Asia | 4 | 7 | 13 | 12 | 31 | 34 | 15 |
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| Europe | 8 | 7 | 9 | 13 | 13 | 15 | 25 |
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| North America | 3 | 4 | 5 | 10 | 12 | 13 | 38 |
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| Australia | 23 | 24 | 20 | 29 | 30 | 46 | 48 |
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This shows a re-alignment of trading partners in 1991-1993, with exports to North America and Asia gaining ground strongly, followed in 1993-1994 by strong growth across the whole range of trading partners. In 1995 exports to Asia declined sharply but those to North America and Europe expanded, with strong export growth overall.
2.3 Software and Services Exports
The information in this section is taken from a survey of businesses conducted in 1994 and again in 1995 by Statistics New Zealand. This survey was sponsored by the Ministry of Commerce, ITANZ, Tradenz and Statistics New Zealand. The survey will be repeated on an annual basis.
The survey asks all businesses for information as at their previous annual balance date, the cut-off being 30 September each year. The average balance date in each sample might reasonably be assumed to be March.
Software and services have not been separated due to the difficulty of accounting for software maintenance revenue.
Software and Services Exports
| | 1994 | 1995 |
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| Software and Services Exports | 75.8 | 101.7 |
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The 1994 figure has been revised very slightly from the last release of this paper due to re-classification of income by some firms.
The survey also finds a total hardware export 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 restriction of the survey to IT related firms with at least 2 staff members.
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, and secondly it does not comprehensively cover non-IT businesses or businesses of 2 full time equivalent staff or less. Both these limitations would tend to cause the survey to underestimate the actual export figures.
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