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Size and Scale of our Export Industry

The size and scale of the Technology Industry Association is South Australia is significant – total revenue in 2007 was running at $4.3 billion pa. 

Perhaps more significantly, the technology Industry is now a major industrial pillar in the South Australian economy, exporting more than the wheat, petroleum, wool and biotechnology, and comparable to many large industries in the State.

The table below shows technology Exports relative to other industries.

Table 2 - Technology Exports Relative to Other Industries ($billion pa YE 30 June 2007)¹

According to a report prepared by the South Australian Centre for Economic Studies on the Export Survey of the technology Industry (June 2007), almost 20% of our industry employers have more than 50 employees, and a turnover of more than $5 million pa.

There are over 1000 ICT businesses in South Australia - half of them export and 1/3 of the rest plan to within the next two years. It is important to foster increased sales for existing exporters (building the value of exports) and to capture the exporters who begin to export over the next two years (building the volume of exporters).

The South Australian technology industry is more than just an enabler for other industries such as mining and transport – it is a major industry in its own right, exporting products and services to the world worth almost $1 billion pa.

The technology Industry Export Project (Export Project) commenced in 2005, and plays a central role in the ongoing expansion of a vibrant, world renowned ICT Industry in South Australia.

During the life of the Project, ICT and Electronics exports increased by 42%, from $656 million pa, to $931 million pa (Refer Table 1). This is a significant achievement, especially in light of the increasing value of the Australian dollar over that period.

Overseas Exports as a percent of revenue have increased by 25%. 

Notably, as an indicator of the value of the Project, the percentage increase in exports is greater than the percentage increase in revenue over the life of the Project. 

Table 1 - Technology Industry Export and Revenue Forcasts

Some important statistics:

• Almost 20% of our technology companies employ more than 50 employees, and have a turnover of more than $5 million.
• By 2014 technology will be an $8 billion pa industry, making it a major contributor to the achievement of the objectives of the State’s Strategic Plan.  
• 50% of our technology companies export and 1/3 of the rest plan to in the next two years. 
• As at June 2005, employment approximated 21,500 people by some 1000⁷  businesses in IT, electronics, telecommunications, and digital content.
• Major technology export markets are the US and the UK, with China emerging as a new growth region.
• The industry develops globally competitive enterprise solutions for Corporate and Government, and niche applications for health, mining, entertainment, transport and defence sectors.

References

¹ South Australia’s Economic Performance Update, August 2007, Government of South Australia http://www.southaustralia.biz/library/SA_Eco_Per_Update_Aug2007.pdf
(Note that the figure for Biotechnology is not yet measured by the Department of Trade and Economic Development – this estimate is based upon 20% of annual revenue of $175 million, reported in The Advertiser Business Section, 30 January 2006, accessed October 22, 2007.)

² South Australian Centre for Economic Studies, 03/04 figures, presented to the ICT Industry 11 October 2007, June 2005 Study

³ South Australian Centre for Economic Studies, Export Survey of the ICT Industry, June 2007, p8

⁴ South Australian Centre for Economic Studies, Export Survey of the ICT Industry, June 2007, p8

⁵ South Australian Centre for Economic Studies, Export Survey of the ICT Industry, June 2007, pp1,8

⁶ South Australian Centre for Economic Studies, Export Survey of the ICT Industry, June 2007

⁷ SACES ICT Industry Measurement Study (June 2005)