Professional Project Report: Growth in Mining and Manufacturing

This report, a Master of Professional Accounting project, investigates the growth and development of the mining and manufacturing industries in Australia. It examines the background of both sectors, establishing the research aims, objectives, and research questions. A literature review synthesizes existing knowledge on industry trends. The methodology outlines data collection and analysis techniques, focusing on assessing industry performance, growth rates, and profitability. The report analyzes data to derive results and conclusions, addressing research questions regarding the relationship between profit margins, operating income and growth. The research aims to provide insights into the dynamics of these key Australian industries, assessing their contributions to the economy. The conclusion provides answers to the research questions and highlights the findings of the study. The report also discusses the limitations of the research and provides recommendations for future studies.

Running head: PROFESSIONAL PROJECT
Professional Project
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Summary....................................................................................................................................2
Introduction................................................................................................................................3
Background of the Study........................................................................................................3
Aim and Objective of the Research.......................................................................................4
Research Question..................................................................................................................5
Literature Review.......................................................................................................................6
Mining Industry......................................................................................................................6
Manufacturing Industries.......................................................................................................7
Methodology..............................................................................................................................9
Data Collection.......................................................................................................................9
Data Analysis.........................................................................................................................9
Industrial Performance.........................................................................................................10
Growth rate and profitability................................................................................................11
Ethics....................................................................................................................................11
Data Analysis and Findings.....................................................................................................12
Discussion............................................................................................................................13
Conclusion................................................................................................................................14
Limitation of the Research...................................................................................................14
Recommendation..................................................................................................................14
Reference List and Bibliography.............................................................................................15

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Summary
The summary of this paper discloses the introduction to the paper along with the
background of the mining industry along with the manufacturing industry that is functioning
in Australia. The background of the topic has been influential for the development of the
research aims and objectives and has even assisted in the construction of the research
questions. The research question has aided in developing the problem statement that would be
influential for the development of the review of literature. The literature review provides the
numerous suggestions and recommendations that have been cited by the previous experts and
researchers with respect to similar research topics and problems. The methodology of the
research has been undertaken in order to construct a path for the completion of the paper and
to disclose the data collection method and the various tools that were implemented in order to
complete the paper accordingly. The data analysis has been undertaken by evaluating the
mining and the manufacturing processes with respect to the overall manufacturing and
mining data of Australia. This would be influential for the establishment of the results that
would bring out specific results. The conclusion of the paper provides the answers that were
essential for the completion of the paper and this has revealed the results that are suitable for
the paper.

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Introduction
The one of the best degrees that is essential to become a professional accountant has
been the certificate of “Master of Professional Accounting”. This topic of the paper has been
utilised in order understand the rate of growth and development in the manufacturing and the
mining industry in Australia (Dobele et al., 2014). This paper explains the objectives and the
aims of the research that is constructed by taking help of the background of the mining and
the manufacturing industry and the construction of the research questions. The literature
review is even prepared in accordance to the rate of development of the both sorts of the
industries. The last section of the paper will explain the methodology of the paper along with
the analysis of the data and the process of data collection, which would be influential for the
assessment of the data and construction of the conclusion of the paper.
Background of the Study
Manufacturing and mining are one of the developing industries that are functioning in
Australia. These industries give out a vast scope to the companies that are available in the
market and the in the economy. The manufacturing and the mining industries construct a
precise set of contribution to the market and the economy of Australia. Therefore, an analysis
and a research are being undertaken which would be helpful for the development of precise
and authentic data that is associated with the industries that are under consideration. With
respect to this topic, numerous articles and literatures have been compared and assessed and
the evaluation of the numerous set of the factors will be undertaken. The researcher and the
expert will bring in the data and the information of the mining industries and the
manufacturing industries for the past three years, which will assist in bringing out transparent
and lucid image about the industry (Manalo et al., 2015). The research paper would even help
in gaining knowledge that the industry is developing more efficiently. The data and the
information that is associated with the processes and the mechanisms of the collection of the

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data and the research mechanisms will be given out by the analyst with the result of which
the targeted users who are seen in the market will even gain precise information in
association with the numerous components of the research.
The paper even examines the rate of growth that is existent in the Australian
industries. In specific, the research would concentrate on the growth rates of the
manufacturing and the mining industries. The main factor behind the selection of these
industries has been that both the industries have been productive, innovative and competitive
in the economy of Australia (Cheshire et al., 2014). Therefore, examination of these kinds of
industries can assist in effective evaluation of the research. In accordance to this, it can be
cited that rate of development in these sectors has not been consistent. One sector develops
faster in accordance to the other one. Hence, evaluation of these two sectors have been
undertaken by taking help of the total expenses, profit margin and the operating income of the
two industries that have been taken into consideration. The rise in the degree of the profit
margin and the operating income has a optimistic relationship with the rate of growth and the
rise in the overall expenses has an impact on the profitability and hence it has a inverse
relationship with the rate of growth (Bell, & Hindmoor 2014). This information is collected
from the annual report of the companies that have been taken into consideration.
The paper has been in association with the profession of accounting as in this paper,
overall expenditure, profit margin and the operating income of the chosen industries which in
this case has been the manufacturing and mining industries would assessed for the past three
years.
Aim and Objective of the Research
The objectives and the aim that are in relation to this research has been constructed in
order to gain suitable set of data that is associated with the mining and the manufacturing

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industries that are functioning in Australia. The main objective and the aim of the paper has
been to construct effective set of knowledge and understanding in relation to the efficiency of
manufacturing and mining industries that are functioning in Australia. The other objective
has been to assess the level of growth in the manufacturing and the mining industries that are
functioning in Australia. The comparison of the rate of growth with respect to the
profitability of the concerned sectors has been made to understand the research topic.
Research Question
The research question has been constructed with respect to this topic has been given
below:
Q1. What is the relationship between the margin profit and the operating income of the
manufacturing and the mining industry?
This question would be helpful for the construction of a more distinct evaluation of
the topic by undertaking precise comparison behind the rate of growth among the two sectors.

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Literature Review
In this segment of the paper, the researcher would gain useful insight about the
information that is available from the secondary data sources. This segment of the paper
would aid in constructing more precise and authentic process of gaining knowledge about the
topic of the research. Manufacturing and mining industries are sustainable and developing
industries for Australia, which are assisting economy for the development of the present and
the future aspects of the nation (Biswas, 2014).
Mining Industry
Söderholm, & Svahn (2015) has categorized the mining industry into numerous sub-
divisions with respect to the characteristic of mining operations. The classification includes
the use of oil and gas mining, coal mining, metal ore mining and other sorts of mining. The
process of mining includes the processing and the extraction of a variety of minerals which
are available unevenly within the surface of Australia. There are various kinds of general
mining mechanisms like the underground mining, surface mining and other processes of
mining. There has been a structural transformation in the beginning of the year 2000 when
the price of the essential resources was at the minimum. The demand for the products started
rising with the help of the fast developing economies and hence the commodity prices
associated with the steel and the iron and factories related with production of energy
increased specifically (McLennan et al., 2017). In order to meet the fast developing
international demand, Australia concentrated more on the coal and other mineral extraction
and slowly shifted their focus away from the processing of metals.
The rise in the revenue in mining has been generally achieved with the help of the
extraction of iron and coal and this has been the most demanding mineral for the
development of economy and the infrastructure of the nation. On the other hand, it has been
observed that mining of the other ores has seen fewer rises while in the metal production

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industry has fallen over the past few years. The GDP of the mining industry has shown
significant growth till the year 2012-13. The rise in the commodity prices has even boosted
the mining firms in Australia to increase their level of investments in order to expand their
business. However, it has been observed that for the past few years, the profitability and the
growth of the mining sector has started to decline thereby creating a problem for the economy
of the country. The main factor for the decline in the mining industry has been rise in the cost
of extraction and fall in the demand for minerals other than coal, oil and gas. It is seen that
mining industry has been contributing a significant part in the manufacturing industry but for
the past few years their level of contribution has declined (Timmer et al., 2015). The changes
in the government policies due to extreme level of mining exploitation and leading to the
depletion of the environment has led to the rise in the various associated costs related to the
mining industry. Hence it has been observed that contribution of the mining industry in the
GDP has been falling and therefore it has become significant for the government and the
mining companies to implement plans that would lead to development of the organization
(Cheshire et al., 2014). The fall in the level of profitability has been mainly due to the change
in the taste and preferences of the consumers and the strict extracting rules and regulations set
forth by the government.
Manufacturing Industries
The manufacturing sector has been a developing industry that is existent in Australia
within which there are numerous set of services and products, which are produced and
manufactured by the organizations. There are various industries like the clothing, electrical,
mining and other companies that fall under the manufacturing sector and this has shown
significant rise in the level of revenue (Downes et al., 2014). The existent manufacturing
firms that are available in the Australian manufacture various kinds of products that can be
used by the final consumers for fulfilling their needs and developing the infrastructure of the

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country. From the latter stages of 2000 it has been seen that the manufacturing sector has
been developing at a fast rate with the development of the needs and demands of the market.
The rise in the demand in the market has influenced the manufacturing industries to
undertake higher level of investment in order to increase their level of profit and to maintain
sustain the demand that is available in the market (Yakovleva, 2017). There has been rise in
the level of demand among the consumers with the advent of time and therefore the
companies have undertaken various strategies to enhance their products and stay updated
with the demand and changes in the market. There has been a sustainable rise in the level of
profitability in the manufacturing sector due to the rise in demand in the market for various
kinds of manufacturing items. This has led to the development of innovative products and
techniques and in a way has attracted new investors to undertake investment ventures in the
manufacturing sector (Northey et al., 2014).
The manufacturing sector has been revealing an optimistic development in the
Australian market and has been giving out effective results in the GDP of the nation. It has
been observed that the manufacturing sector has been developing from time to time and in the
last few years the sector has been observing a booming period (Bakker, & Shepherd 2017).
Therefore, manufacturing sector has an immense role in the development of the Australian
economy and the growth and the profitability margin of this sector has to be analysed in order
to receive a clear picture about the manufacturing sector. Hence, it can be said that the
manufacturing sector has been facing a sustainable growth in the profit while on the other
hand; the mining industry has been facing losses as their level of profit has been falling down
significantly.

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Methodology
The segment of research methodology deals with the data that has been gathered by
the researcher and assessment of the data in a precise manner. With respect to this paper, the
secondary method of gathering of the data has been undertaken by the researcher. In
accordance to the secondary sources it is seen that data is gathered by taking assistance of
numerous books and articles along with the annual report of the companies that are
functioning within the mining and manufacturing sector in Australia (Fleming, & Measham
2014). The secondary data has even been collected from various internet sources from which
mass data can be gathered. The data that are associated with the sectors would be gathered
from the secondary sources and with the assistance of the data evaluation of the same would
be represented in the data analysis section of the paper.
Data Collection
The objective of this paper has been to ascertain the growth rate of the manufacturing
and the mining sector and this paper would be reliant on the secondary data which can be
collected from the secondary data available from the government websites which provides
various kinds of statistical data (Timmer et al., 2015). The data is commonly gathered from
the Australian Bureau of Statistics. The data was obtained by looking at the industrial
subdivisions that adds value to the report.
Data Analysis
By looking at the dataset of the Australian subdivision of the industries it is seen that
various kinds of data are available like the crucial information of the sub division of the
industry, the cost of labour gathered from the industry sub division and value of the industry
available from the industry subdivision. The sample and the variable chosen from the Table 4
that are available in the excel sheet. Operating profit before tax, profit margin has been the
variables that have been selected for the evaluation of the data. In this paper, the operating

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profit before tax has been considered as the independent variable and the dependent variable
has been chosen as the profit margin.
This paper has utilised the quantitative method in order to evaluate the information
statistically. It is seen that quantitative method prioritize on the computation of the objective
and the mathematical and statistical evaluation of the data that has been gathered with the
assistance of the questionnaires and the surveys and by assessing the information that is pre-
existent with the help of several techniques (Measham et al., 2013). Quantitative research
concentrates on collecting the numerical information and standardising it among the groups
of individuals in order explain a specific phenomenon. The usefulness of the using
quantitative method has been permitting a vaster study with a larger extent of the subjects
along with providing the accuracy and the objectivity of the results. Therefore, it can be said
making use of this method would lead to precise result with respect to this paper. It has been
observed that correlation and various other statistical methods have been exploited in order to
evaluate the information. Vasssarstats software have been utilised for the purpose of
correlation and various other statistical methods.
Industrial Performance
In the primary step of the evaluation, the aim has been to discover the data associated
to the performance of the Australian manufacturing and mining industries. The data that has
been gathered from Australian analysis industry 2015-16, there are various kinds of data that
are existent by looking at the Australian industry with respect to the divisions, Australian
industry subdivisions of the mining and the manufacturing industries with the help of
technical and professional scientific services in the year 2015-16. These data give out various
sorts of data associated with the performance (Xiang et al., 2014). In the Australian industry
subdivision is chosen as under this excel sheet, the Table 4 explains the overall data

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associated with the performance of the subdivisions and the divisions of the Australian
industries.
Growth rate and profitability
The evaluation of the rate of growth of the manufacturing and the mining industry has
been dependent on the development in the profitability (Ivanova, 2014). By looking at the
Table 4, it is seen that the overall profit margin and operating income before tax of the
manufacturing and mining industries is chosen from 2013-16 in order to assess the
development.
Ethics
With respect to this paper, all the ethical components have been taken in to
consideration by the researcher in order to collect the data (Johansson, 2014). It has been
taken into regards that the research content will be ineffective to the culture, beliefs and
values of the individuals.