University Economics Report: Lendlease Group and Construction

This report, submitted for the HI5003 Economics for Business course, analyzes Lendlease Group, a multinational construction company based in Australia. It begins with an overview of the company, its global operations, and its ventures in various markets. The report then delves into an analysis of the construction and infrastructure industry in Australia, focusing on its stable growth, driven by population increase and its linkage to Asia. It examines the impact of rising household debt, regulatory requirements, and financial risks on the industry. The report highlights the industry's contribution to the Australian GDP, employment, and the forecast for future growth, which will be influenced by population growth and regulatory changes. The report concludes with a list of references used in the analysis, providing a comprehensive overview of the company and the industry's economic landscape.

Accounting
Assignment

By student name
Professor
University
Date: 19TH April 2019.
Page 1

Table of Contents
Overview of the Company.......................................................................................... 3
Overview of the industry............................................................................................ 3
References................................................................................................................. 4
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Overview of the Company
The company that has been selected for this assignment is Lendlease Group. It is a
multinational construction company that is based in Sydney Australia. The
company began its operation in 1958. The overall services of the company are
rendered worldwide, and the net income of the company presently runs into
millions. It works on many large urban development projects across several
continents. The company also runs additional market in areas like apartment
development, greenfield residential development and several other venture capital
investments is done by the company. The company is having several assets in
many countries like Singapore, Europe and others. Presently the company is trying
to expand its operation more and is venturing into other fields also. The company is
listed on the Australian Stock Exchange. It employs more than 11000 people
globally. The company belongs to the construction, infrastructure and real estate
industry and a brief description of the industry is given below.
Overview of the industry
With respect to the construction and infrastructure industry in Australia in 2018 the
growth is stable. It can be seen that among the world economies, Australia is at the
top and the major reason of the same is the increase in the population and linkage
to Asia. But what we see is that there is a growth in the household debt
(Boghossian, 2017). Household debt has increased due to the increases in the
house prices. So, we see that growth in the household debt to the total income
earned ratio is the second highest in the world. So, we see that growth in population
is accelerating the growth of the economy but due to the increase in development
there is an increase in the household debt also. But we also see that there is other
hindrance to the growth of the economy with respect to the regulatory
requirements and financial risks that are associated (Vieira, O’Dwyer, & Schneider,
2017). Presently there is around $55 billion worth of nation-shaping projects in
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2018. Every year there is a 5-10% in the overall business of the industry (Rogers &
Koh, 2017). The Australian GDP is highest contributed by the service sector and that
generates the maximum amount of employment and with respect to the
Construction and real estate services the average contribution to the GDP is around
5%-9% and that is also supported by the huge employment that the business is
generating. There has been a forecast that there would be a depletion in the
Australian GDP from 3.0% in 2018 to 2.4% in 2019. This can be contributed to the
fact that there is a huge increase in household debt and the interest rates that are
there on these debt items is also fluctuated based on several factors that affects the
GDP growth. It can be said that in the coming years this industry will grow more,
and a lot of its growth can be contributed to the huge upscale population and
changes in rules and regulatory requirements (Wellmer, 2018).
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References
Boghossian, P. (2017). The Socratic method, defeasibility, and doxastic
responsibility. Educational Philosophy and Theory, 50(3), 244-253.
Rogers, D., & Koh, S. (2017). The globalisation of real estate: the politics and
practice of foreign real estate investment. International Journal of Housing
Policy , 17(1), 200-232.
Vieira, R., O’Dwyer, B., & Schneider, R. (2017). Aligning Strategy and Performance
Management Systems. SAGE Journals, 30(1), 23-48.
Wellmer, A. (2018). The Persistence of Modernity: Aesthetics, Ethics and
Postmodernism (fourth ed.). UK: Polity Press.
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