FOUR REGIONS HAVE REVENUE IN EXCESS OF $1B, OTAGO/SOUTHLAND THE FASTEST-GROWING, AUCKLAND REMAINS THE ECONOMIC POWERHOUSE, ACCORDING TO 2022 TIN REPORT
Key highlights from the report:
- NZ’s top 200 technology export companies by revenue (TIN200 companies) generated $15.117B in total revenue for FY2022, up $1.247B or 9.0% on FY2021.
- Total TIN200 exports were $11.495B, up $961m or 9.1% on FY2021. Tech constitutes NZ’s second largest export earner behind dairy and comprises 14% of NZ’s total export revenue for the year to June 2022.
- Total TIN200 employment was 62,718, up 6148 or 10.9% on FY2021.
- The average TIN200 employee wage rose $699 to $89,711 – $27,883 higher than the national median of $61,828.
This year, four out of the report’s six regions achieved double-digital growth. High growth companies were spread across New Zealand, with impressive results from those based in Otago/Southland.
TIN Head of Research Alex Dickson says:
“Beyond resilience, Kiwi tech companies are competing and winning overseas in a time of global economic uncertainty and there’s a growing sense of confidence in the sector and by those invested in it.
By the numbers, we see our tech companies supporting much-needed export diversity, productivity, and income assurance as New Zealand plots a path to recovery. Tech companies added more than a billion dollars of revenue growth and $960 million in export growth to the country’s economy over the last year.
The sector’s breadth of export destinations, ability to absorb shocks and avoid conflict with climate goals is a major asset in this regard. On its current trajectory, tech exports will hit $20.5B by 2027, but challenges like attracting, training, and maintaining skilled talent remain an obstacle.”
A summary of regional data in the 2022 TIN Report is as follows:
With 115 companies and $8.26B (55% of total TIN200 revenue), the New Zealand tech sector remains squarely concentrated on Auckland/Northland. Staff numbers grew by 10.6% in FY2022 for a total of 32,440 staff (both domestic and global) captured by Auckland/Northland companies. High-tech Manufacturing, which accounts for 62% of Auckland’s total revenue, experienced slower growth this year, registering 1.3% ($63m) revenue growth, whereas ICT and Biotech grew by 16.1% ($363m) and 9.4% ($45m) respectively. At 6.1% ($472m) overall growth for 2022, the Auckland/ Northland regional contribution to TIN200 growth is both consequential and comparatively lower than all other regions.
- Revenue ($000): $8,260,544
- Growth ($000/%): $471,956 or 6.1%
- Job Creation (actual/%): 3,120 or 10.6%
- Number of TIN 200 companies: 115
- Share of total TIN200 revenue: 54.6%
- Three largest TIN200 companies: F&P Healthcare, F&P Appliances, Pushpay
The Waikato region accounts for 10 TIN200 companies, including New Zealand’s four largest Agritech companies – Gallagher Group, Livestock Improvement Corporation, Tomra Foods and NDA Group – which accounted for 84% of the region’s $1.2B total revenue, and 83% of its 4,109 strong workforce. This year, Waikato tech grew revenue by 8.3%, or $92.7m, more than five points below the region’s 5-year CAGR of 13.8%. Despite slower growth this year, the region continues to boast New Zealand’s highest average salary of $103,300.
- Revenue ($000): $1,216,550
- Growth ($000/%): $92,717 or 8.3%
- Job Creation (actual/%): 247 or 6.4%
- Number of TIN 200 companies: 10
- Share of total TIN200 revenue: 8.1%
- Three largest TIN200 companies: Gallagher Group, LIC, Tomra Food
Made up of 15 companies from the Bay of Plenty, Gisborne, Hawke’s Bay and Taranaki/Whanganui, the Central North Island is the smallest region by total revenue ($342.9m) and employees (1,508). Despite its size, the Central North Island continues to expand its tech footprint with double-digit revenue and employee growth of 14.9% ($44.5m) and 16.1% (209 staff). Of the 15 companies, 10 are Hi-tech Manufacturers, with four operating in the Agritech space. Local ICT companies Fingermark and LawVu grew strongly in 2022, supporting regional ICT sector growth of nearly 40% or $16.8m.
- Revenue ($000): $342,880
- Growth ($000/%): $44,472 or 14.9%
- Job Creation (actual/%): 209 or 16.1%
- Number of TIN 200 companies: 15
- Share of total TIN200 revenue: 2.3%
- Three largest TIN200 companies: NZ Frost Fans, Trimax Mowing Systems, Bluelab
The 32 TIN200 companies in this region generated $3.7B in total revenue, $417m of revenue growth and 24.4% of total TIN200 revenue. Much of this growth can be attributed to Wellington/Manawatū’s giants – Datacom, Xero and WetaFX – in addition to the 20 other ICT firms that call the region home. Together these 23 companies accounted for 51.7% of ICT revenue across the TIN200, and 94% of the region’s tech 17,915 employees, up 2,091 from last year. Three Wellington based companies, PartsTrader, Sharesies and Dinosaur Polo Club, entered the TIN200 for the first time this year.
- Revenue ($000): $3,689,835
- Growth ($000/%): $416,953 or 12.7%
- Job Creation (actual/%): 2,091 or 13.2%
- Number of TIN 200 companies: 32
- Share of total TIN200 revenue: 24.4%
- Three largest TIN200 companies: Datacom, Xero, Weta Digital
Canterbury/Upper South Island
This year, Canterbury tech companies lifted revenue growth to 12.0%, up from 6.0% in 2021, to top $1B in total revenue for the first time. Hi-tech Manufacturers enjoyed double digit revenue growth of 13%, adding $93.9m for a total of $818.3m, or 73.6% of total regional revenue. Canterbury’s largest companies – Tait Communications, Seequent, Enatel and Moffat Group – accounted for 46.2%, or $518m of total revenue, underscoring the region’s prowess in electronics manufacturing. With 20 companies in the TIN200, Canterbury is the third largest TIN200 region, though it accounted for only 4.3% of national employment growth in FY2022.
- Revenue ($000): $1,111,916
- Growth ($000/%): $118,759 or 12.0%
- Job Creation (actual/%): 262 or 6.7%
- Number of TIN 200 companies: 20
- Share of TIN200 revenue: 7.8%
- Three largest TIN200 companies: Tait Communications, Seequent, Enatel
After a challenging year in 2021, tech companies headquartered in Otago/Southland bounced back recording 26.1% growth - this year’s top regional performance. Six of the region’s eight TIN200 companies recorded double-digit growth, with a further four – Magic Memories, Education Perfect, Scott Technology and Pacific Edge – picking up TIN200 high-growth awards. Magic Memories, a standout amongst the group, grew by 82% or $45m, following post-COVID investment in cloud, mobile and ecommerce-based products.
- Revenue ($000): $495,246
- Growth ($000/%): $102,640 or 26.1%
- Job Creation (actual/%): 219 or 9.3%
- Number of TIN 200 companies: 8
- Share of TIN200 revenue: 3.3%
- Three largest TIN200 companies: Scott Technology, Magic Memories, Escea
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About the TIN Report
The TIN Report is produced by Technology Investment Network with sponsorship from New Zealand Trade and Enterprise (NZTE), Absolute IT, BNZ, NZX, Auckland Unlimited and GD1. Now in its 18th year, the TIN Report has become a critical reference for benchmarking the performance of New Zealand’s 200 largest globally focused technology companies, categorised according to the primary sectors of Biotech, ICT (Information and Communication Technologies) and High-Tech Manufacturing.