New Zealand’s top 200 technology companies – a group known as the “TIN200” – have set a new record this year, raking in more than $10 billion in combined revenues, with more than $7.3 billion coming from exports.
The TIN200 companies, which are ranked by revenue, now contribute the equivalent of 10 percent of all of the Land of the Long White Cloud’s exports. In fact, tech is now the third-largest – behind dairy and tourism – export industry for New Zealand.
The numbers were announced at the launch of the annual TIN Report in Auckland on Tuesday. At the launch, it was revealed that two-thirds of the offshore revenue growth could be attributed to an 18.8 percent increase in TIN200 revenues in the North American market. Translation: TIN200 companies are exporting more to North American countries like Canada, Mexico and the US, and making more money from doing so.
The TIN200 take their name from the Technology Investment Network. Managing director Greg Shanahan says the numbers are pretty exciting because they reflect positively on how New Zealand is doing on the world stage. “This has been a defining year for the TIN200 companies,” he says. “We’ve seen a sustained increase of around 8 percent in both revenue growth and exports but more significantly, the real story is in the integral part that the technology sector now plays in the country’s economy.”
Last year, TIN200 companies created 4,352 new jobs to employ over 43,000 staff globally, with an average salary of just under $84,000 per person. “The broadening economic impact of this growth is creating opportunities throughout New Zealand society,” says Shanahan.
Another highlight was the growth of Māori-owned or Māori investment-backed technology companies. For the first time this year, the report showcases Māori tech companies.
Five prominent Māori owned or Māori investment-backed companies are estimated to have generated $93.9 million of this year’s total TIN200 revenue. Waikato Milking Systems is the highest-ranked, while Straker Translations, Sentient Software and Animation Research have either retained or gained places on the TIN rankings. IT healthcare solutions provider Whānau Tahi also joined the TIN200 ranks.
As well as the established players, the 2017 edition of the TIN Report also found that a strong and diverse pipeline of up-and-coming Māori companies exists. “The Māori economy is a significant and important contributor to New Zealand’s economy,” says Callaghan Innovation general manager for sectors Hēmi Rolleston.
Estimated to be worth $50 billion, the Māori economy is playing an ever-increasing role in the technology economy. “In a world of increasingly fast-paced technological change, we need to embrace the future by encouraging more marriages between Māori and technology,” says Rolleston.
Robyn Kamira, founder of Paua Interface and Incredible Skies, is optimistic as to where things may go from here for the Māori economy. “While we have been measuring the growing contribution of Māori to the economy for some years, we have yet to identify the increasing contribution of Māori technology companies. This new annual feature in the TIN Report is a chance to measure and track upward progress. It sets thresholds that encourage Māori companies to reach higher, to engage in healthy competition, and to accelerate their performance.”
That’s not all she has to say. “The TIN Report celebrates Māori companies as distinct and valued. They are inventing, harnessing and reaching technological goals amidst rapid change, and there is a sense of confidence that they will increasingly contribute to the global technology community and to New Zealand’s economy.”
Check out the report here.
Check out some of the highlights of the 2017 TIN Report below:
Top 10 companies by rank
2017 Revenue ($000)
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
EY Ten Companies to Watch: TIN100 companies with the largest revenue growth in 2017
2017 Revenue ($000)
Fisher & Paykel Healthcare
The EY Ten Companies to Watch list represents the TIN100 companies with the highest dollar value increase in revenue in the past year. Included are companies that have provided revenue figures and achieved a minimum growth of 5 percent.
Ten Hot Emerging Companies: The Next100 companies with the largest revenue growth in 2017
2017 Revenue ($000)
The Ten Hot Emerging Companies list represents the Next100 companies with the highest dollar value increase in revenue in the past year. Included are companies that have provided revenue figures and achieved a minimum growth of 5 percent.
Spark Early Stage Companies
2017 TIN Report breakdown by region:
AUCKLAND & NORTHLAND
The Auckland region was outpaced in growth terms by the other regions in 2017, but maintained its revenue lead with the 121 TIN200 companies located in Auckland and Northland generating nearly $5.8 billion revenue (5 percent revenue growth).
1,515 jobs were created in the region (7.1 percent job growth).
The top 5 Auckland companies (in revenue terms) were:
- Fisher & Paykel Appliances
- Fisher & Paykel Healthcare
- Orion Health
- Douglas Pharmaceuticals
- Temperzone Group
WELLINGTON & LOWER NORTH ISLAND
The Wellington and Lower North Island region accounted for a 21 percent share of total TIN200 revenue this year. TIN200 companies generated over $2.1 billion revenue (10.5 percent revenue growth).
767 jobs were created in the region (7.7 percent job growth).
The top 5 TIN200 Wellington companies (in revenue terms) were:
- Datacom Group
- Weta Digital
Hamilton recorded a 21.7 percent revenue increase in 2017; the highest percentage growth of any of the regions. TIN200 companies generated more than $608 million revenue.
168 jobs were created in the region (8.6 percent job growth).
The top 5 TIN200 Hamilton companies (in revenue terms) were:
- Gallagher Group
- NDA Group
- Waikato Milking Systems NZ
- Pacific Aerospace
CENTRAL NORTH ISLAND
The Central North Island grew its revenue growth percentage in 2017 by 5.7 percent with TIN200 companies generating more than $260 million revenue.
65 jobs were created in the region (8.5 percent job growth).
The top 5 TIN200 Central North Island companies (in revenue terms) were:
- New Zealand Pharmaceuticals
- Pultron Composites
CHRISTCHURCH & SOUTH ISLAND
The South Island region further increased its traction in 2017, with TIN200 companies generating nearly $1.3 billion revenue (11.8 percent revenue growth).
1,837 jobs were created in the region (36.1 percent job growth; the highest job growth percentage increase of all the regions).
The top 5 TIN200 South Island companies (in revenue terms) were:
- Tait Communications
- Magic Memories
- Scott Technology
- OMNI Orthopaedics
- Skope Industries