Australia’s information and communication technology industry has a long road ahead before it can develop sustainable export markets, according to a recent report.
Australia’s information and communication technology industry has a long road ahead before it can develop sustainable export markets, according to a recent report.
According to the ITC Trade Update 2006, ICT exports for 2005 were worth $5.3 billion, down from the 2000 figure of $7.7 billion.
Imports for the same period cost $25 billion, creating an ICT trade deficit of $19.7 billion, up 3.7 per cent on the $19 billion trade deficit for 2004.
The report said Western Australia accounted for 5 per cent of Australia’s locally produced ICT equipment exports, compared with Victoria’s 42 per cent, New South Wales (40 per cent), Queensland (7 per cent) and South Australia (6 per cent).
Australian Computer Society chief executive officer Dennis Furini said the impact of the ICT trade deficit extended beyond the sector, with many of the challenges currently confronting the industry requiring focus from both federal and state governments to create flow-on benefits to the broader Australian economy.
“The lack of improvement in the trade deficit figures is indicative of the current industry climate, including key issues such as skills shortages and reduction in local production,” he said.
“It is essential that government bodies take action now to capitalise on our nation’s comparative advantages and to become competitive globally, or other industries will also suffer from an associated deficit.”
Mr Furini said an improved trade performance would depend on growing the ICT production capability.
“This is particularly important in the areas where we are competitive with our overseas counterparts, such as computer services trade and electronics production, medical devices and instrumentation,” he said.
Mr Furini called for greater support for domestic production and services companies to develop and service export markets, and further targeting of regionally focused ICT export missions and programs to maximise opportunities.
The group also suggested the sponsoring of a national ICT 10-year plan and national marketing initiative to exploit Australia’s potential as an offshore destination.
Meanwhile, Austrade believes online sales are an important trading component for ICT exporters.
Austrade eBusiness adviser, Edwin Kuller, said the US was a prime destination for Australian IT exports due to the free trade agreement and compatibility of technology systems between the two countries.
Business-to-consumer eCommerce sales in the US, according to Forrester Research, are predicted to grow from $222 billion in 2005 to $426 billion in 2010, representing the largest market for eCommerce.
Mr Kuller said Europe also was a key market, with eCommerce sales expected to surpass annual purchases of $427 billion by 2011.
