Publications

Computer and Peripherals Material Project

Prepared by Meinhardt Infrastructure & Environment Group
for Environment Australia
October 2001
ISBN 0642547734

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3. Production

3.1 Manufacturing

The manufacture of computers and peripheral equipment involves the production of separate components by different companies. In most cases, computer and peripheral equipment companies will assemble their product by combining parts sourced from manufacturers of individual components. The chain of supply may involve several companies (e.g. company A assembles a desktop computer using a motherboard built by company B using ICs from companies C and D, plus PCBs from company E, etc.).

Given the small percentage of the global ICT market occupied by Australia, it is generally less expensive to import basic materials (e.g. ICs, PCBs) than to manufacture them locally. Some companies undertake assembly in Australia from parts manufactured overseas, however most computer hardware is imported from overseas rather than manufactured or assembled locally. Some Australian manufacturers have developed niche export markets for specialised equipment (e.g. point-of-sale keyboards) or commonly required components (e.g. memory chips), however these will usually still be manufactured utilising imported materials.

3.1.1 Imports

Data recorded by the Australian Bureau of Statistics (ABS) shows that computer imports have risen significantly over the past 5 years. Figure 3.1 shows total computer imports for the past 6 financial years.

In 2000, imports of personal computers (PCs), disk drives and monitors amounted to $5,498 million, representing 4.7% of Australia's total imports. An additional $2,518 million of computer parts (such as motherboards and memory) was imported into Australia in the same year. In total, computers and peripherals amounted to 6.9% of Australia's total imports in 2000 or $8,016 million (ABS 2000).

Table 3.1 indicates that over half of the average quantity of computer and peripheral equipment imported between 1996 and 2000 came from four countries, these being (in alphabetical order) Hong Kong (Semi-Autonomous Region of China), Malaysia, Singapore and the United States of America. There have been significant increases in the quantity of imports from Malaysia and Singapore during this period, as well as significant increases in the value of imports arriving from Japan, Malaysia and Taiwan. The latter observation may indicate a shift in the types of materials being imported from these countries towards higher-value components and finished products. Less than 1% of imports are "re-imported" (i.e. they were originally exported from Australia and are now being re-imported, usually following processing overseas).

Table 3.1 Country of Origin for Computer and Peripheral Imports (1996-2000)

Country of Origin (1,2)	Average Quantity 1996-2001	Share %(2)	Growth in Quantity %	Average Value 1996-2000 ($)(2)	Growth in Value %
United States of America	36,651,800	17	37	1,207,003,400	0
Singapore	35,506,200	16	62	928,195,200	14
Hong Kong (SAR of China)	24,446,100	11	16	150,760,300	-17
Malaysia	24,173,000	11	34	745,296,600	78
Taiwan	17,842,600	8	29	573,296,600	45
Japan	14,106,800	7	100	646,388,800	100
Thailand	13,537,300	6	69	118,642,200	23
Others	50,001,100	23	52	1,085,600,000	51
Total	216,264,800	100	43	5,455,231,800	34

Source: ABS
Notes:
1. Data is based on imports recorded in number of units (kilograms, metres or not recorded). Imports recorded in number of units represent 99% of total value of imports 1996-2000.
2. Values for individual countries may not equal the total due to rounding.

Data obtained from ABS lists the quantity and value of computer related commodities imported between 1996 and 2000. The data has been aggregated into categories of commodity that reflect the scope of this report. Data has also been separated according to destination states or territories. Summary tables are provided in Appendix A of this report.

The ABS data shows that, in broad terms, the quantity and value of imports for all individual components was significantly higher than that of complete PC packages. These components may either be destined for assembly of complete PCs within Australia or for individual sale as parts for repair and upgrade of existing machines.

It is important to note that materials imported under some of these categories (e.g. co-axial cables, insulated wires and integrated circuits) may not be exclusively destined for use in computers and peripheral equipment.

The average annual quantity and value of computers and peripheral equipment imported between 1996 and 2000 is provided in Table 3.2. Integrated circuits represent the largest quantity of commodities imported, whereas computers represent the highest value. Monitors and printers are imported in slightly greater quantities than computers, whereas keyboards are imported in lesser quantity. Storage devices are imported in significant quantity, and represent approximately double the quantity of otherwise unclassified input/output units. Data for cabling has been recorded in kilograms or metres rather than number of units and, as such, care must be taken when comparing cabling to other commodities. It is possible to identify an overall low value for cabling despite significant quantities being imported, which is consistent with information received from stakeholders.

Table 3.2 Average Annual Quantity and Value of Computer and Peripheral Imports (1996-2000)

Item	Unit	Average Annual Quantity	Average Annual Value ($)
Accessories	no	6,455,228	481,833,309
Co-axial cables	kg	655,402	7,341,014
Co-axial cables	m	64,106,131	35,851,368
Computers	no	1,244,053	1,967,224,022
CRT monitors	no	1,470,293	453,056,132
Drives, storage units	no	4,634,107	931,767,807
Input/output units	no	2,467,753	445,829,210
Insulated cables, wires1	kg	2,679,936	34,094,630
Insulated cables, wires1	m	3,031,967	2,047,433
Integrated circuits	no	196,407,747	1,048,718,508
Keyboards	no	853,667	19,407,745
Optical fibres	kg	No data	30,870,542
Printers	no	1,367,528	417,033,063
Ribbons	no	1,364,385	12,620,604

Source: ABS
Note: 1. Different measures of cables and wires are not equivalent, i.e. kilograms of cables imported is not equal to metres imported, but the total of both amounts represents all cabling imported.

Table 3.3 presents a summary of the average annual quantity and value of commodities imported to each State and Territory between 1996 and 2000. However it is important to note that the State of destination for an imported commodity does not necessarily equate to the State where that commodity will be sold, let alone used.

This is particularly the case where companies import materials through one port and then distribute them nationally from that location. However the domestic distribution is likely to occur where it is most cost-effective (e.g. intrastate and to neighbouring States, but not between locations at opposite ends of the country). The data may therefore be employed as only an indicative measure of the geographic distribution of computer sales and use.

Table 3.3 indicates that the greatest proportion of commodities within each category are imported to New South Wales, with the exception of co-axial cable, insulated cables and ICs, for which the greatest proportion are imported to Victoria. In general terms the majority of imported goods arrive in Victoria and New South Wales, with significantly smaller amounts being received within other States. Western Australia receives a significant, if comparatively low, proportion of printers, and Western Australia and Queensland received a significant if comparatively low quantity of computers in 2000.

Table 3.3 Imports of Computers (1996-2000)

Commodity	State	Average Annual Quantity	Average Annual Value ($)
Computers	ACT	14	410,274
	NSW	962,426	1,649,658,021
	NT	32	667,574
	Qld	58,387	28,554,183
	SA	4,980	6,901,554
	Tas	12	174,995
	Vic	112,197	191,240,640
	WA	106,004	89,616,782
	Total	1,244,053	1,967,224,022
CRT monitors	ACT	1	4,705
	NSW	1,116,804	347,529,175
	NT	1,421	329,878
	Qld	36,199	8,852,241
	SA	24,464	6,880,751
	Tas	1	2,063
	Vic	230,992	71,123,520
	WA	60,409	18,333,799
	Total	1,470,293	453,056,132
Printers	ACT	1	616
	NSW	952,153	228,210,335
	NT	134	65,791
	Qld	4,206	2,372,970
	SA	10,862	481,852
	Tas	2	6,791
	Vic	29,515	14,821,251
	WA	370,656	171,073,459
	Total	1,367,528	417,033,063
Ribbons	ACT	0	0
	NSW	1,117,194	6,460,322
	NT	35	579
	Qld	55,011	504,823
	SA	1,849	10,053
	Tas	3	100
	Vic	150,074	5,377,340
	WA	40,219	267,388
	Total	1,364,385	12,620,604
Integrated circuits	ACT	70	1,114
	NSW	88,817,752	653,288,258
	NT	85	4,273
	Qld	2,204,348	9,263,333
	SA	6,998,283	29,345,702
	Tas	84	5,161
	Vic	95,065,543	340,716,438
	WA	3,321,583	16,094,227
	Total	196,407,747	1,048,718,508
Accessories	ACT	415	24,102
	NSW	4,213,909	432,470,293
	NT	91	28,946
	Qld	293,530	7,284,565
	SA	45,339	2,738,234
	Tas	236	9,962
	Vic	1,627,637	34,346,750
	WA	274,071	4,930,458
	Total	6,455,228	481,833,309
Drives, storage units	ACT	3	3,136
	NSW	3,483,026	719,406,463
	NT	25	49,433
	Qld	32,720	6,680,127
	SA	3,190	609,032
	Tas	6	11,583
	Vic	979,463	164,695,586
	WA	135,673	40,312,448
	Total	4,634,107	931,767,807
Input/output units	ACT	68	84,482
	NSW	1,931,268	348,580,758
	NT	78	65,745
	Qld	25,560	4,839,680
	SA	19,031	1,706,039
	Tas	5	7,164
	Vic	347,618	57,554,933
	WA	144,125	32,990,409
	Total	2,467,753	445,829,210
Keyboards	ACT	0	39
	NSW	642,501	15,352,211
	NT	1	1,364
	Qld	17,536	281,801
	SA	3,252	223,712
	Tas	1	918
	Vic	159,782	2,918,532
	WA	30,593	629,169
	Total	853,667	19,407,745
Co-axial cables1 (kg)	ACT	0	0
	NSW	337,919	3,019,762
	NT	30	1,955
	Qld	44,456	543,016
	SA	24,963	474,545
	Tas	7,065	29,131
	Vic	209,055	1,743,800
	WA	31,915	1,528,806
	Total	655,402	7,341,014
Co-axial cables1 (m)	ACT	0	0
	NSW	24,832,819	9,222,413
	NT	166,446	204,245
	Qld	2,816,560	949,917
	SA	5,208,636	1,486,556
	Tas	141	2,735
	Vic	30,874,322	23,367,809
	WA	207,207	617,691
	Total	64,106,131	35,851,368
Insulated cables, wires1 (kg)	ACT	40	7,086
	NSW	1,505,008	22,730,898
	NT	298	12,735
	Qld	96,857	999,197
	SA	67,462	516,506
	Tas	758	41,455
	Vic	977,018	8,917,735
	WA	32,494	869,018
	Total	2,679,936	34,094,630
Insulated cables, wires1 (m)	ACT	3,646	8,800
	NSW	1,077,350	1,223,409
	NT	4	119
	Qld	640,707	93,775
	SA	10,824	4,731
	Tas	0	0
	Vic	1,173,887	689,296
	WA	125,549	27,303
	Total	3,031,967	2,047,433
Optical fibres	ACT	No data	0
	NSW	No data	21,757,955
	NT	No data	338
	Qld	No data	691,090
	SA	No data	13,598
	Tas	No data	0
	Vic	No data	8,240,717
	WA	No data	166,845
	Total	No data	30,870,542

Source: ABS

Note: 1. Different measures of cabling are not equivalent, i.e. kilograms of cables imported is not equal to metres imported, but the total of both amounts represents all cabling imported.

The quantity of particular materials also provides an indication of the geographic distribution of companies involved in manufacturing and assembly for computers and peripheral equipment.

3.1.2 Exports

Australia also exports computer equipment, with data from 1997/98 recording the total value of computer exports at $1,065 million (ABS 1999). This indicates that exports are significantly lower than imports. Data from both ABS and information from individual companies indicates that the principal export destinations for PCs are (in alphabetical order) Hong Kong, Singapore and New Zealand.

Table 3.4 indicates that the annual number of units exported is highly variable, however there was a 30% increase in the quantity of computers exported between 1996 and 2000, and overall increases of varying magnitudes in all other categories.

It remains unclear as to whether the optical fibres and co-axial cabling exported from Australia is destined for use in computer networking applications or in telecommunications and other electrical and electronic applications. Similarly, integrated circuits may be used in a range of electrical and electronic applications, including but not limited to computers and peripheral equipment. If exported cables and integrated circuits were excluded from comparison, the largest segment of exported materials is comprised of PCs, which is consistent with information from individual companies. Input and output devices are also exported but printers and scanners are not.

Table 3.4 Quantity of Components Exported from Australia (1996-2000)

Component	Year
	1996	1997	1998	1999	2000
Optical fibres	1,726,289	144,146	2,047,248	4,640,901	29,580,413
Co-axial cables	5,300,034	7,925,068	4,123,036	4,634,394	28,481,570
Computers	104,628	116,227	116,018	89,323	149,807
Integrated circuits	1,090,430	927,458	895,428	2,942,015	11,113,897
Input-output units	89,846	52,684	110,709	95,222	97,680

Source: ABS

Table 3.5 indicates that the highest export value (cabling excepted) is in computers, which is again consistent with advice from stakeholders. The value of exports is highly variable across all sectors, however the table indicates a decrease in the per-unit value of computers, integrated circuits and input-output units. This may indicate a shift towards manufacturing and assembly of less sophisticated products with a lower market value.

Table 3.5 Value of Components Exported from Australia (1996-2000)

Component	Year
	1996	1997	1998	1999	2000
Optical fibres	39,096	16,842	82,424	134,542	292,694
Co-axial cables	10,041	9,613	3,910	5,117	27,199
Computers	169,642	274,500	266,375	168,513	147,264
Integrated circuits	16,313	13,109	17,484	25,789	54,029
Input-output units	73,812	23,234	36,965	34,092	32,518

Source: ABS

Figure 3.2 indicates that significant quantities of exports are "re-exported" (i.e. the material has originated overseas, and is being sent back after processing within Australia). The principal commodities being re-exported are various ICs, and principal destinations are Hong Kong, New Zealand, Singapore, UK and USA.

Re-exported materials excluded, Figure 3.2 illustrates that New South Wales, South Australia and Victoria are the principal places of origin for exported goods, with significant yet lesser shares in Queensland and Western Australia. Comparison of quantity and value of goods exported indicates that goods with the highest unit value are being produced in New South Wales and Victoria.

Whilst exported goods are limited indicators of geographic distribution of manufacturers (due to the same distribution characteristics that affect import data), it may be inferred that the principal manufacturing centres lie in New South Wales, South Australia and Victoria.

3.1.3 Total Domestic Shipments

According to IDC Australia, computer shipments in Australia grew from 2,098,001 in 1999 to 2,219,425 in 2000 (refer Table 3.6 below). These figures indicate the total number of new computers sold in each year, and as such includes computers that have been imported as well as those assembled or manufactured within Australia.

Table 3.6 Computer Shipments in Australia

Year	Shipments
1998	1,791,632
1999	2,098,001
2000	2,219,425

Source: IDC Australia

The market is highly variable, as indicated by the 17.1% growth experienced between 1998 and 1999 being followed by 5.8% growth between 1999 and 2000. This reduction is thought to be tied to worldwide economic factors, rather than saturation of the Australian computer market. In fact there are suggestions that some companies have been constrained by a lack of supply of some computer components (e.g. hard drives, motherboards) and historically have experienced difficulty in meeting the market demand for their products in Australia.

The approximate split of shipments between different forms of computer is provided in Table 3.7 below.

Table 3.7 Shipment Composition (1999)

Type	%
Commercial Desktop	57.4
Consumer Desktop	24.7
Portables	15.2
PC Servers	2.7
TOTAL	100

Source: IDC Australia

Based on IDC Australia data for sales of printers in selected quarters of 1999 and 2000, approximately 705,000 printers were sold in 1999. Higher sales in the first quarter of 2000 indicate that actual sales are currently higher than this estimate suggests. Data from IDC Australia allocates 74% of sales in the second quarter of 1999 to inkjet printers. If it is assumed that this proportion remained relatively stable during 1999, the number of inkjet printers sold can be estimated to be approximately 530,000 whilst the number of laser printers sold is approximately 175,000.

Comparable figures for cabling, scanners and other peripherals are not available.

3.2 Usage Patterns

Data relating to the geographical distribution of computer and peripheral equipment use is limited, as is data on the proportion of use in various market segments. This is due in part to the nature of the manufacturing and sales industry, whereby many different companies are involved at separate points in the chain from original equipment manufacturers (OEMs), new equipment distributors (NEDs) to end users. However some quantitative analysis can be undertaken based on the limited data available; this is discussed in the following sections.

3.2.1 Computers

Market segmentation for PC sales in Australia was estimated by the Australian Greenhouse Office in 1993; this is shown in Table 3.8 below. However sales figures can be expected to vary from year to year, and market segmentation for individual forms of computer may differ considerably.

Table 3.8 Computer Sales by Community Sector

Sector	%
Households	17
Government	18
Education	14
Medium and small business	28
Large corporations	23

Source: AGO

Despite the age of the data, these figures provide not only an indication of purchasing by sector but also indicate the source of equipment that is likely to have recently been replaced and disposed.

A quarterly survey of household computer ownership indicates an increase from 4,174,000 computers in 1998 to 5,416,000 computers in 2000 (ABS 2001). Table 3.9 indicates continued growth over the past three years, with a marked increase between 1999 and 2000. This table also indicates that the number of computers owned by home users is higher in metropolitan areas than in other areas, with 3,764,000 computers in metropolitan areas compared to 1,652,000 computers in other areas in 2000 (ABS 2001).

Table 3.9 Households with Access to a Computer at Home

Region	Nov 1998 (%)	Nov 1999 (%)	Nov 2000 (%)
Metropolitan areas	50	53	59
Other areas	43	44	52
Total	47	50	56

Source: ABS

Percentages of households provide an indication of ownership, however there will be some households that own more than one computer, so the relationship is not linear.

A smaller study conducted in South Australia in 2000 found that computers were present in 65 out of 100 households surveyed, which indicates that the percentage of households owning a computer varies between States (EPA 2000). This is borne out by ABS data provided in Table 3.10, which shows the largest quantities can be found in New South Wales and Victoria.

Table 3.10 Computers Owned by Households by Location (2000)

Location	No of Computers
STATE:
ACT	131,000
NSW	1,825,000
NT	37,000
Qld	942,000
SA	400,000
Tas	112,000
Vic	1,442,000
WA	527,000
Total	5,416,000
REGION:
Metropolitan areas	3,764,000
Other areas	1,652,000

Source: ABS

A survey of business use of computers conducted by ABS in June 2000 showed significant use amongst a range of industry sectors. Across all sectors, computer use has grown from 49% of businesses in 1993/94 to 63% in 1997/98 and 76% in 1999/2000.

However the survey did not include government administration and defence (including the Reserve Bank of Australia), education, religious organisations, or agriculture, forestry and fishing. These missing sectors are likely to be significant users of computers. Nevertheless the survey data does provide an overview of use amongst private industry as outlined in Table 3.11 below.

Table 3.11 Business Use of Computers

Industry Sector	No of Businesses('000)	Businesses with Computers(%)	No of Computers ('000)
Mining	2	82	33
Manufacturing	54	79	288
Electricity, gas & water supply	-	85	38
Construction	90	68	121
Wholesale trade	45	83	208
Retail trade	112	68	198
Accommodation, cafes & restaurants	32	61	44
Transport & storage	32	64	105
Communication services	4	77	97
Finance & insurance	23	81	262
Property & business services	149	88	473
Health & community services	51	83	117
Cultural & recreational services	17	81	46
Personal & other services	30	60	59

Source: ABS

The table shows that while there was a widespread use of computers across all sectors, the most extensive use was in property and business services, followed by manufacturing, finance and insurance, wholesale trade, retail trade, health and community services, and transport and storage.

One of the missing areas (agriculture) was the subject of a separate survey. A survey of computer use on farms found that an estimated 49% of the 147,160 farms in Australia owned or used a computer at the end of March 1999 (ABS 1999). The highest proportion of farms using a computer were located in Northern Territory (65%), the Australian Capital Territory (62%) and Western Australia (59%), while Queensland (45%) and New South Wales (48%) had the lowest proportion of farms using a computer (ABS 1999).

The government sector was also the subject of a previous survey. The principal sector of PC ownership by Government in 1998 was State and Territory departments and agencies, as indicated by Table 3.12.

Table 3.12 Estimated Computer Ownership by Government Type

Government Type	No of Computers ('000)
Federal departments and agencies	164
State/Territory departments and agencies	231
Local Government	60
Other government organisation	51

Source: ABS

Survey data from ABS (2000) also indicates that the extent of computer use is related to the size of the business. Table 3.13 shows that the extent of computer use increases in accordance with increasing business size, with computers being used in all businesses that employ over 100 people. These figures are slightly higher than those estimated by IDC Australia, which indicate that approximately 67% of Australian businesses employing less than 100 employees in the non-agricultural private sector use personal computers and information technology to some degree (IDC Australia).

Table 3.13 Business Computer Use by Size

Size	No of Businesses ('000)	Businesses with Computers(%)
EMPLOYMENT
1 - 4 persons	415	69
5 - 19 persons	184	85
20 - 99 persons	36	97
100 or more persons	6	100
ANNUAL SALES
Less than $100,000	158	63
$100,000 - $999,999	365	76
$1m - $4.9m	92	91
$5m or more	26	99

Source: ABS

Businesses using computers within each State/Territory and within capital and regional areas are shown in Table 3.14. Whilst the values indicate a comparatively low use of computers by businesses in the Northern Territory, there is a relatively even percentage of businesses using computers throughout Australia.

It is particularly important to note the relatively small difference in the percentage of businesses with computers in capital cities compared to other areas.

Table 3.14 Business Computer Use by Location

Location	No of Businesses ('000)	Businesses with Computers(%)
STATE:
Australian Capital Territory	12	80
New South Wales	233	74
Northern Territory	4	68
Queensland	112	79
South Australia	42	78
Tasmania	12	70
Victoria	169	77
Western Australia	57	75
REGION:
Capital cities	430	77
Other areas	211	74

Source: ABS

If the data on household and business use of computers is compared to sales data in Section 3.1, it may be argued that the market share for home consumers has increased to approximately one-quarter of the overall new computer market. The impact of this increased market share on business, Government and education sectors is not clear, however it can be assumed that the business sector has retained its proportional share of the remaining market share. Advice from leasing companies suggests that 70% of leased equipment lies within corporate and institutional sectors, with education being the largest sector, followed by health, other Government departments and large corporate companies.

If these assumptions are applied to a revised market share based on the home consumer market accounting for 25% of annual sales, and if it is assumed that these sales patterns remain relatively stable between successive years, then the percentage of computer sales by sector (as established in Table 3.8) can be updated as estimated in Table 3.15.

Table 3.15 Estimated Computer Sales by Sector (2001)

Sector	%
Households	25
Government	16
Education	13
Medium and small business	25
Large corporations	21

It should be noted that these estimates are based on new equipment sales, and do not incorporate second-hand machines that are being re-used in these sectors. As discussed in Section 3.3, the education sector and domestic households are major recipients of reused and/or refurbished equipment. Consequently the share of computer usage and the total number of computer equipment in these sectors is likely to differ from sales figures in Table 3.15.

3.2.2 Peripheral Equipment

The quantity and quality of data on the use of peripheral equipment (including cables, printers and cartridges, and scanners) is more limited than it is for computers. ABS surveys of household computer ownership have identified high ownership of printers but a low percentage of scanners, as indicated by Table 3.16.

Table 3.16 Household Ownership of Printers & Scanners (2000)

Location	Printer		Scanner
	% of Households	No	% of Households	No
STATE:
ACT	88	115,280	31	40,610
NSW	87	1,587,750	27	492,750
NT	90	33,300	29	10,730
Qld	85	800,700	32	301,440
SA	87	348,000	33	132,000
Tas	87	97,440	26	29,120
Vic	86	1,240,120	26	374,920
WA	86	453,220	24	126,480
Total		4,675,810		1,508,050
REGION:
Metropolitan areas	88	3,312,320	30	1,129,200
Other areas	88	1,453,760	30	495,600

Source: ABS

The table also indicates that ownership of peripheral equipment is independent of the number of computers owned, with the largest percentage of printers owned in Northern Territory, and the largest percentage of scanners owned in South Australia. The ABS survey did not identify any significant differences in ownership between metropolitan areas and other areas. The survey also identified internal components such as CD burners, CD-ROM drives, DVD drives, modems and webcams, however these items are not considered as separate items within the scope of this report.

Table 3.16 outlines the estimated number of printers and scanners in use in 2000 in the household sector at 4,675,810 and 1,508,050 respectively. There is no baseline data on the numbers in use in other sectors. If printer and scanner sales are consistent with the percentages for computer sales outlined in Table 3.8 (which shows that the household sector accounts for approximately 17% of total sales), then the total number of printers and scanners in use is in the order of 27,505,000 and 8,871,000 respectively. However these figures would indicate more printers in use than computers, a situation not reflected in actual use. The figures also do not reflect the business use of one printer linked via a local area network to a large number of computers.

The best estimate of printer and scanner use in non-household sectors may be based on the number of businesses that use a computer (as provided in Table 3.11). This table shows that there are approximately 641,000 businesses using computers (excluding government, education, religious organisations, agriculture, forestry and fishing). If it is assumed that each of these businesses has a printer and a scanner, then the total numbers of printers and scanners in use is at least 5,317,000 and 2,149,000 respectively. This is expected to be a conservative figure, as it does not allow for the possibility of multiple pieces of equipment in corporate situations.

Industry figures provided to Environment Australia (2001) suggest that 1.3 million printer toner cartridges were in use in Australia in 1999. If the estimates of printers in use given above are accurate, then the number of inkjet cartridges in use may be more than double the suggested figure even before considering the percentage of users consuming more than one ink cartridge per year.

If estimates by ACF (1996) that laser printer cartridges have a 1-4 month lifespan (based on 300 gm of toner per cartridge, and 3,000-5,000 pages printed) are considered accurate, then the approximate number of toner cartridges used in Australia in 2001 will fall within the range of 2,625,000 to 10,500,000. While this range is quite large, it is dependent on the number of toner cartridges used with each laser printer. This relies on the print volume of each user, which may vary significantly with the nature of the print run and the type of user.

This figure is comparable to estimates from a leading cartridge recycling company that approximately 5 to 6 million toner cartridges are purchased each year in Australia.

3.3 Waste Equipment

3.3.1 Computers

The annual quantity of computers disposed of is directly related to the number of years for which the equipment is used before disposal. Approximately 70% of small to medium businesses retain their PCs for longer than 3 years (ABS 2000), and anecdotal evidence from Australian computer manufacturers suggests that the retention period of the domestic user is approximately 5 years. The retention period may vary significantly between users.

A limited survey of 100 South Australian households by Göl et al. (EPA 2000) indicated that 46% had yet to replace their first computer and, out of those that had replaced their first computer, approximately 40% had done so within five years after their original purchase. The majority of replaced household computers identified in the study were either placed into storage (34%) or had been passed on for reuse (26%), generally within the family.

Leasing of equipment is well established in Australia, particularly in the institutional and corporate sector. Industry participants estimate that approximately 600,000 computers are currently leased in Australia. Approximately 240,000 computers are disposed of in this sector every year. Leasing of scanners and printers is also established, although at a much lower rate. Approximately 15,000 units would be disposed of each year.

Leasing is also likely to become much more prevalent in the future as the lifespan of future generations of computers become shorter and users (especially commercial users) wish to minimise technology costs. Industry participants suggest that the average lease in the USA runs for approximately 18 months, before the machines are scrapped and new ones provided. In Australia, the average lease period is approximately 3 years, although this is decreasing. Industry surveys by IDC Australia indicate that over 30% of Australian small-to-medium enterprises upgrade their PCs every 2 years.

The earlier ABS surveys of household computer use identified a clear trend to acquire greater computer capacity, with a general decline in numbers of computers owned or being paid for with processing capacity below a 486 and memory capacity below 16 megabytes (ABS 1998).

A model for the disposition and end-of-life of desktop and notebook computers was developed by Matthews et al (1997). The model utilised assumptions regarding the lifespan of computers and the proportions of obsolete computers being disposed of through reuse, storage, recycling or landfilling to estimate the number of computers disposed of through each pathway. The Matthews model has been adapted to reflect the disposal patterns in Australia, based on information provided by industry participants and a survey of corporate and individual computer users in South Australia (EPA 2000). The adapted model is provided in Appendix B. The model is based on flowpaths as indicated in Figure 3.3.

It is important to recognise that these percentages are both approximate and homogenous (i.e. they do not reflect differences in disposal patterns for different sectors of the community). Limited evidence from South Australia indicates that private users store fewer machines than corporate users (EPA 2000).

These percentages may also vary between geographic regions, most likely due to the degree of access to particular options that are available in each region. The percentages will also differ to, but are generally consistent with, those identified overseas, as illustrated by estimates from studies in Florida (Price 1999), which indicate that of the total obsolete computers in the State, approximately 8% are landfilled, 21% recycled and over 71% are in storage awaiting disposal.

The model in Appendix B yields an estimate of approximately 7,677,300 computers in use in Australia in 2001. This number includes the cumulative total of computers that have been purchased new between 1999 and 2001 (being 6,477,800 computers) and the cumulative total of computers that have been passed on for reuse between 1999 and 2001 (being 1,199,500 computers).

A summary of the total number of computers sent through each disposal pathway (other than reuse) is provided in Table 3.17. As computers are held in storage for an approximate average of 3 years, values for both the annual quantity sent to storage and the quantity of computers already in storage have been provided.

Table 3.17 Estimates of PCs Disposed in Australia

Disposal Option	2001	2006	2011
Recycled	281,700	494,000	509,600
Landfilled	926,500	1,632,800	1,694,700
Sent to storage	1,331,000	1,792,800	1,839,800
Total already in storage	3,618,200	5,260,400	5,479,700

Based on an average landfill compaction rate, it is estimated that over 77,000 m3 of landfill airspace will be taken up by computers in 2001. This is estimated to nearly double within 10 years, to approximately 141,000 m3 per year by 2011.

The model in Appendix B extrapolates data from 1985 (when computer ownership began to be widespread) to 2011 (to predict movements over the next 10 years). The model shows that during this period approximately 2,011,000 m3 of landfill airspace will be taken up by waste computers by 2011.

It is important to acknowledge that there are a number of shortcomings in the model's applicability to the Australian situation. Of particular importance is the volume of equipment in use (and subsequently the amount disposed of). The model shows that approximately 7,091,200 computers were in use in Australia in 2000. However data from ABS surveys (Table 3.10) shows that household ownership of computers in 2000 was approximately 5,416,000, indicating a domestic market share of almost 77%. This comparatively large domestic market share is inconsistent with advice from a range of stakeholders and contrary to information from a range of other Australian reports which shows a much larger market share by the corporate / commercial sector than the 23% which these figures indicate. It is possible that the sample households surveyed by the ABS skewed the results of the total domestic ownership of computer and peripheral equipment. It is more likely that the model underestimates the number of computers in use in Australia.

The model remains the best representation of computer circulation that has been developed. However the number of assumptions required affect its sensitivity. Therefore, while model figures included in Table 3.17 above indicate that waste computer equipment is a very large problem in Australia, it is possible that the real problem is in fact much worse.

3.3.2 Printers & Scanners

Anecdotal evidence suggests that the lifespan of peripheral equipment can be considerably longer than that of PCs and is determined more by equipment operability and the availability of replacement parts and consumables (e.g. ink and toner cartridges) than by obsolescence.

Given the relatively recent market penetration of scanners and the anticipated lifespan of around 5 years, it is unlikely that significant numbers of scanners have been disposed of into the waste stream. However this is not likely to be the same case for printers.

Information from stakeholders indicates that laser printers may last up to 5 or 6 years depending on the intensity of use. However leasing of printers is likely to increase and as such the period of use for individual machines is likely to decrease.

Stakeholder advice is that few printers are reused, in part due to their longer product life and the relatively low purchase price of a new printer. It may therefore be assumed that all printers reaching the end of their product life are disposed of. With a conservative estimate of 5,317,000 printers currently in use and an approximate product life of 5 to 6 years, it is possible that disposal rates are upwards of 1,500,000 printers per year. However this figure should be treated with caution given the uncertainty of actual printer use.

3.3.3 Cartridges

Industry stakeholders advise that approximately 17% of an estimated 6 million cartridges are recovered, leaving 83% potentially being disposed of.

Based on the estimated range of 2,625,000 to 10,500,000 cartridges being sold each year, this equates to an annual waste stream of between 2,179,000 and 8,715,000 cartridges.

3.3.4 Cabling

It is difficult to approximate the quantity of cabling being disposed of per year in Australia, however there are some observations that can be made. It is likely that the adoption of UTP as standard networking cable has led to the disposal of significant quantities of Thinnet cabling in the past 5 years. This material is likely to be predominantly comprised of shorter lengths of cable that have been used to connect PCs to in-wall cabling.

Inside each CPU there may be up to 5 m of cable length, of various types and sizes. Additionally there may be up to 10 m of cable externally, connecting input and output units, and the PC to power supply. Based on these assumptions the following quantities of cables could potentially be entering the waste stream. For 2001figures, 12,660 km of internal cabling and 25,319 km of input and output cables is estimated. This is in addition to 18,071 km of internal and 36,142 km of input and output cabling potentially already in storage.

In situations where cables have been installed within wall cavities it is unlikely that effort will be expended to remove surplus cabling, and as such this material may be regarded as "stored" until significant structural alterations are made to their surroundings and they are disposed of with other demolition material.