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27.October 2006 |
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| Export barriers a concern for Kiwi high tech companies |
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A survey by DHL, the world’s leading express and logistics company, has found there are widespread concerns about the barriers faced by New Zealand high technology companies exporting overseas.
The DHL High Tech Export survey found that 40 per cent of companies surveyed, including high technology exporters, believe there are significant barriers to New Zealand technology companies exporting overseas, and 44 per cent feel there is not enough support available to these companies.
Information and Communications Technology (ICT) has been identified by the government as a key sector for the growth and sustainability of the New Zealand economy. However, while 54 per cent of respondents felt New Zealand is perceived internationally as an emerging provider of high technology expertise, exporters want more support across a number of areas to overcome the barriers faced.
“There’s no question that New Zealand has the high technology expertise to compete on a global level – over half of respondents agreed on that point. But many companies consider exporting overseas as difficult to fund and want more help,” said Derek Anderson, General Manager, DHL Express.
The key area of concern is financial backing, particularly capital investment, with 54 per cent stating this to be a major area requiring support. Of these respondents, 36 per cent, noted that more government funding is required and 18 per cent stated that more private investment is needed. The survey also found that the industry needs better advice, as well as access to information and training, if it is to be able to compete in the global market (42 per cent).
According to Mr Anderson, while financial investment is necessary, more qualitative help is needed to build a successful export business.
“Capital investment is important, but so is good advice and contacts. In fact, there is already a great deal of support available for potential exporters, through New Zealand Trade and Enterprise and other business development agencies,” said Mr Anderson.
“DHL is helping New Zealand exporters to be successful and compete with overseas companies reliably and cost effectively. We offer the highest quality export freight solutions, based on strong local expertise combined with the most extensive global network presence.”
The results show that the major barrier for technology companies when exporting is the capital required for set-up costs (27 per cent). Other barriers include the strength of the competition (18 per cent), different cultural ways of doing business and language barriers (17 per cent), lack of local knowledge (12 per cent), and not knowing where to begin with exporting (9 per cent).
Respondents believe Kiwi companies have a number of advantages over their overseas competitors, including an innovative and global approach (34 per cent), fast response times and converse time zone to major markets (27 per cent), competitive costs (11 per cent), proven track records (11 per cent) and an excellent business environment (9 per cent).
“There is a strong perception that innovation sets us apart from the rest of the world,” said Mr Anderson. “This finding supports the view that New Zealand companies that leverage Kiwi ingenuity are most likely to succeed. DHL supports this through our innovative products and services”, said Mr Anderson.
Further results
The results show that people feel strongly that there is no need for technology companies to move their headquarters offshore to achieve long-term success (60 per cent). In addition, 76 per cent of respondents believe there would be a negative impact, if companies did move their headquarters abroad.
Respondents felt that New Zealand is recognised as an emerging provider of high tech expertise in the United States (26 per cent), Australia (21 per cent), Europe (19 per cent), Asia (17 per cent) and the United Kingdom (15 per cent). The technology sectors we provide expertise in were considered to be: software (28 per cent), electronics, hardware and manufacturing (24 per cent), Information Technology services (24 per cent), telecommunications/mobile solutions (13 per cent) and distribution (11 per cent).
DHL works with high technology companies from across all sectors providing them with international express shipments, freight forwarding and supply chain solutions. In particular, the express freight solutions provide technology companies with the speed and reliability necessary to ensure high value goods reach their destinations on time, with track and trace technology to allow exporters to follow shipment progress.
DHL Express New Zealand recently achieved highly sought after security certification of key facilities following its investment in a number of security elements such as Closed Circuit Television scrutiny of freight handling operations. This certification provides exporters with further assurance when handing over their goods for transportation to international markets.
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© 2010 |
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