Background
The Information and Communication Technology (ICT) Supply Survey: 2005/06 is the second in a new time series, based on recently developed OECD definitions to measure the ICT industry. The ICT Supply Survey: 2005/06 measures the sale of goods and services from businesses associated with ICT industries. The ICT Supply Survey replaced the previous Statistics New Zealand Information Technology (IT) Survey (1993–2004).
For the ICT Supply Survey: 2005/06, collection industry lists were added to the core ICT industries to provide wider coverage of ICT industries. The lists and minor changes to the questionnaire, together with updated 2004/05 respondent data, have led to revision of the ICT Supply Survey: 2004/05 data to increase comparability with 2005/06 data (see Technical notes of this release).
Data from the ICT Supply Survey: 2005/06 will be included in the OECD Science, Technology and Industry scoreboard (www.oecd.org/sti/scoreboard) which will be updated later in 2007.
Total ICT sales
Results from the ICT Supply Survey for the 2006 financial year show that total sales of ICT goods and services were valued at $17,643 million, with 90.9 percent ($16,033 million) of this value being sold domestically, and 9.1 percent ($1,610 million) being sold to export markets. This is a 7.9 percent increase in total sales, with domestic sales rising 6.9 percent and export sales up 19.9 percent from the 2005 financial year.
Sales of ICT commodities
For the 2006 financial year, sales of ICT services increased 7 percent to reach $9,518 million, while sales of ICT goods (including published software) increased 9.1 percent to $8,125 million. This percentage difference between sales of ICT goods and services has stayed relatively constant, with a difference of 0.4 percent between the two years.
For the 2006 financial year, sales of telecommunication and program distribution services increased 5.8 percent, to reach $5,803 million. This remains the most significant sales commodity.
Sales of Internet access and Internet telecommunication services increased 32.5 percent, to reach $595 million in 2006.
The audio and visual equipment commodity group, which increased 27.1 percent (to $970 million) in 2006, had the largest percentage change in sales.
Export sales of ICT commodities
For the 2006 financial year, sales of ICT goods were 78.3 percent ($1,260 million) of the total export value ($1,610 million), while ICT services were 21.7 percent ($350 million) of the total.
Export sales of electronic devices and equipment increased $97 million to $523 million in 2006. This remains the highest-value exported commodity category, with 32.5 percent of the total export value.
For the 2006 financial year, export sales of telecommunication equipment increased 31.2 percent to $254 million. Export sales account for almost all the overall increase in total telecommunication equipment sales.
Export sales of published software increased 30.8 percent, to reach $84 million in 2006.
ICT business, by industry and business size
Of the 2,618 enterprises in the 2005/06 ICT Supply Survey population, 2,088 (80 percent) sold ICT goods and services, an increase of 60 enterprises on the 2004/05 ICT Supply Survey population.
Of these 2,088 enterprises, 1,761 (84 percent) were classified as small, an increase of 27 enterprises. There were also 195 medium-sized ICT businesses (9 percent of total), an increase of 27 enterprises; and 131 large businesses (6 percent of total), an increase of 6 enterprises.
For the purpose of the ICT Supply Survey a small business is defined as having two to less than 20 rolling mean employees (RME); a medium business as having 20 to less than 50 RME, and a large business as having 50 or more RME.
For the 2006 financial year, the number of enterprises with ICT sales in the computer consultancy services industry increased by 39, to 1,050 enterprises. This was 50 percent of the total population of enterprises with ICT sales (2,088).
The number of computer wholesaling industry enterprises with ICT sales decreased by 24, to 219 enterprises in 2006.
For the 2006 financial year, the number of professional equipment wholesaling industry enterprises with ICT sales increased by 75 percent, from 36 to 63 enterprises.
ICT sales, by business size
In total sales of ICT goods and services, the larger enterprises were dominant in the 2006 financial year, accounting for $13,230 million (75 percent) of total ICT sales. The medium-sized businesses contributed $1,724 million (10 percent) and small businesses $2,688 million (15 percent). The large businesses were more influential in the sale of services than in the sale of goods.
For the 2006 financial year, the sales of ICT goods from small-sized businesses decreased $55 million to reach $1,733 million, while sales for medium and large businesses increased by $147 million and $584 million, respectively.
Sales of ICT services from medium-sized businesses decreased $38 million to reach $654 million in 2006, while small and large businesses experienced increased sales of $204 million and $455 million, respectively.
ICT industry barriers to growth
For the ICT Supply Survey: 2005/06, strength of competition remains the greatest barrier to business growth, with 32.5 percent of respondents reporting it as a barrier. Other significant barriers identified were the ability to attract and/or retain experienced staff (26.7 percent of respondents), and the ability to attract and/or retain qualified staff (24.3 percent).
Comparing 2006 with 2005, there was a 4.5 percent increase in the number of enterprises reporting that the ability to attract and/or retain experienced staff had been a barrier to growth.
There was also a 3.6 percent increase (from 15.7 in 2005 to 19.3 percent in 2006) in the number of enterprises reporting that access to financing had been a barrier to growth.
For technical information contact:
Peter McGinty
Wellington 04 931 4600
Email: info@stats.govt.nz