SA Business Index: Tech tracks upwards in 2024
Companies leading South Australia’s technology sector climbed the rankings in the 2024 South Australian Business Index, buoyed by expanding demand for solutions and hardware.
Metal detection firm Codan landed a valuation of nearly $3 billion in the 2024 SA Business Index. Photo: Codan.
One leader of South Australia’s technology sector rose a whopping 11 spots in 2024 to land in the top ten of the 2024 SA Business Index, to be released this afternoon.
Metal detection and mining tech firm Codan, one of three new companies in the 2024 top 10, experienced a significant revenue increase of more than 20 per cent to hit $550 million. This helped it land a valuation of nearly $3 billion.
It was a similar story for computer wholesaler Leader Computers, which enjoyed 21.98 per cent revenue growth in FY24, reflecting the expanding demand for its products. This year, the company cracked into the top 20 of the Index.
Tech is also now the third most valuable industry to South Australia. At $3.5 billion, the sector narrowly pipped fast-moving consumer goods (FMGC) to claim the coveted spot. It trails the second-largest sector – financial services – by more than $4 billion, however.
HLB Mann Judd director Jake van der Hoek said his firm observed “substantial growth” in the state’s tech sector, “particularly within the audio-visual electronic equipment manufacturing sector”.
“Companies like Leader Computers and Codan have demonstrated significant revenue increases in FY2024, driven by rising demand for high-quality electronic components and ongoing technological advancements,” he said.
“Additionally, increased government investment in defence, along with rising capital expenditure in the mining sector, has further strengthened demand for advanced electronic equipment.
“We believe these developments have enabled South Australian businesses to diversify their product offerings and better meet the growing needs of both domestic and international markets.”
HLB Mann Judd corporate advisory partner Katelyn Adams said industries like audio-visual electronic equipment manufacturing, computer systems design and cybersecurity software services were three sub-sectors to keep an eye on.
“Demand for advanced cybersecurity solutions is rising due to high-profile breaches and increased reliance on digital infrastructure,” she said.
“This trend, supported by government initiatives like Cyber Smart, will encourage new market entrants and create job growth, positioning cybersecurity as a vital growth driver in South Australia.”
Other industries had mixed results, including the FMGC sector where the majority of companies improved their rankings including two iconic South Australian brands which are new entrants for 2024.
However, other well-known consumer goods brands took tumbles this year, including Maggie Beer Holdings; the company’s struggles have been well-documented by InDaily over the past 12 months.
The 2024 SA Business Index is the most-trusted ranking of the top 100 companies in the state and will be unveiled in its entirety later today.