Overview of the Construction Industry in Australia
Discuss about the Importance Of Social Skills In Labor Market.
Construction market development helps the economic structure of the nation and provide a multi-dimensional opportunity that attributes the scope and chances for business. The shape and structure of the submarkets are high in that case and the changes in moderate sections are noticed tersely due to price section and independent trade functioning. The impact of environmental factors are also liable in that case and ethical consideration from the government is important for aligning the process is a legitimate way. The foreign investment review board addressed that construction industry such as real estate approvals in Australia are lagging behind in the 2016-2017 period. 40,134 approval was granted which sum up of AU$72.3 billion and on the other hand, in 2017 AU$ 23.3 billion had collected, which is lagging down an aspect of real estate (Line& Runyan, 2012). The downfall in the housing market in Australia is very transparent and that will showcase the disaster situation of housing and constructing industry positioning of Australia.
In this case, the chosen organisation is Lendlease Company and aspect of civil engineering is aligned with that (Lendlease.com,2018). The process of property and financial industries are important in that case and labour market challenges are highlighted in that aspect.
The labour market in Australia is the quarterly basis and there is some employment growth as well. In the case of Financial and Insurance services, the management of employee inclusion raises up to 9.6% and rental, hiring and real estate services employee engagement is less than 20, 000. In the case of other service industries, a huge investment of employees is noticed (Preis, Moat& Stanley, 2013). The employment rates are increased by 5.9 and people are not interested in this kind of work culture. The largest decrease in employment had noticed in the year 2016 and the labour market was not at the stable position.
The engagement with employees in construction industry is very less and healthcare industries and social assistance cases people are very interested and associated as well. Labour force participation and the full-time association is the key issue in that case and people. In the case of Lendlease, the profit after tax is $694.4 million in FY16. The earnings before the interest tax depreciation are 1,055.1 million and return to equity is 12.3 % at the same year. All these aspects provide market capitalism and engagement of employees in real estate industries is important for the companies earning security investment (Meng, 2012).
- Relevant statistics at the sector
Factors Influencing Market Development
The industry growth has supported by the rising house prices and low-interest rates. The initiation by the government is important in that case and the commercial property market had a huge downfall in the Australian market. An estimated amount of $24.34 was spent for labours and employees' performance, the labour –intensive approach is the main aspect of this process.
- Pinpoint changes in last 5 years
The aspect of globalisation can be identified in case of construction industry from two different angles. The first one has related to the convergence of the global market and another one is the growing importance of global hubs. The small countries of the world are playing the global role in case specific structure of construction management decisions are taken. For the retail properties, global transportation and in global cities have been connected. The act enhances the global economy as well. The investment in that case and the economic difference is very transparent in that case as well (Frey& Osborne, 2017). The main advantage of the investment is the product availability and distribution in many places in the world and products are equally available in many cities and that enhancement the business productivity and revenue generation. The impact of globalisation on office, retail places and logistic operations are associated with transactional activities and technical parameters are there for the support.
The economic structure is also associated with the process and in the case of real estate industries, economic changes are impacted on the valuation and advertisement. In case of problem situations, real estate companies are formulating their strategy to remitting to the owner on an agreed basis (Rothstein, 2012). The cataloguing and detailing land and building making cases, the development of tenancy and the proper budgeting is the key alternatives that change economic output also. There are many ranges in finance and conveyance maintenance in construction buildings but the aspect of economic changes is the right reason for the real estate companies in Australia.
The technological progress is one of the driving forces in business innovation in the construction related process. The trends in the market and future chances are making the path for the information development. There are certain mistakes as well from the organisational at the initial level when they are not technologically strong but after that, the time come when the entire operation is formulated by the energy is directed in the positive segments (Deming, 2017). There are some current trends in business in e-commerce and that provide shape in the construction business.
- The office technology improvement and hi technologies are used for the operating cost are important in that case, that consequences in logistic and distribution channel.
- The technologies are implemented in case of creating smart buildings and good communication technologies and good quality of process enhancement is important in that case.
- The rapid increase of sales and product marketing in most of the areas are highlighting the impact of the e-commerce business(Deming, 2017). In most of the cases, the profound impact has been found and that is the reason technological sustainability and solvent nature of the business is crucial in that aspect.
Role of Lendlease in the Construction Industry
Innovation in the retail industry is important and this is completely different from a modern perspective. There is some tech-savvy millennial, which are now customer based and industry is starting from that section. 71% of digital change has come up after the customer need and that encourage the property generation and increase the future development aspect in construction business companies(Rothstein, 2012). The visual showcasing and risk-taking situation and project management in addition to artificial intelligence is the main reason that encourages the shifting alignment and creates building in new forms. The concept of smart homes has come in this process and that will provide an estimated reach of the country $122.34 billion by 2020 in this particular sector. The cloud-based advancement and redefining appraisal space in building in USA or Enetiv in the USA, Foyr in India, No Agent in the UK, Purplebricks in Australia, and VR Listing in Canada are the innovative options that create history in world construction business aspect.
There have been several factors affecting the growth of the company. The factors are in terms of political, economic, technological, and social and so on. The impact of these factors has been very significant over the business process of the company.
Political factors: In order to discuss the influential factors of the company, it must be said that the government of Australia has a transparent legal system which has been very beneficial for business world. The political condition of the country is extremely suitable for the growth of economy (Lendlease.com.2018). It has been seen that compared to other countries, the political situation of the company is in advantageous position for business which is one of the most desirable criteria of every companies in order to set up the business of the company. The flexible trade rules and regulations of the company benefit the business of the company at a greater scale.
Economical factors: The growing economy of the country is one of the most beneficial factors that bring benefits for the company. All the business sectors of the country are increasing including the labor market of the company. The construction industry as well as the sector of construction is increasing in a rapid pace (Lendlease.com.2018). Thus the industrial growth of the country creates a demand in the market which Land lease has been satisfying successfully over the years.
Social factors: while discussing the major factors that had a significant impact on the growth of the company, it must be mentioned that a large amount of talent pool can be done from the country. The construction industry gives a huge opportunity to a number of people by providing a huge number of employment.
Labour Market Challenges in Australia
Technological factors: The entire real estate and construction sector has been blessed by the modern technological innovation (Lendlease.com.2018). Thus, the technological innovations open up a wide range of opportunities for the growth of the company. Technological advancements will help the labour market to work in a more safer environment.
One of the major factors which will have a positive impact for further expansion of the company is the increasing demand within the industry. Since Australia falls under the developing countries, there demand of construction is high thus it will create huge opportunities for the company. Global trend is one of the most influencing factors on the company and its strategy. In this regard, it must be mentioned that increasing urbanization is one of the major influencing factor towards the growth of the company. The growing social trend of customized construction will be impacting the company while opening up large scopes for the company (Lendlease.com.2018). Meanwhile there can be some factors which can be have adverse effect on the company, such as changes in trade rules and regulations and a change of ruling party in government.
- What are the major trends observed in the industry in which the company operates in?
An: Increasing rate of urbanizing has been impacting the company to a considerable rate.
- What are desirable skills required in terms of employment?
Ans: Since the business world is changing day by day, professionals must have a positive attitude in order to cope up with the evolving trends of the industry.
- How do you set your strategy for the growth of the company?
Ans: Considering the global trends in relation to the industry, strategies are being set. In addition to that current market requirements are considered while developing the business strategies.
- What are the impact of the economy and political situation of the country on the company?
Ans: Since Australian economy is one of the largest economies in the world, the company is grossly benefitted. Similarly, the political condition of Australia is stable which positively impacts the operation of the company.
The above interview with the managerial professional of landlease reveals the major influencing factors on the company such as urbanization, social trends. Meanwhile, the interview also states that the political condition as well as the economy of the company is in favorable situation for the company.
- What are the skills required to get a job in the construction industry?
Ans. To be an effective leader or employee in the construction industry the following skills are required:
- Team management
- Negotiation with the suppliers and other stakeholders for the betterment of the organization.
- Personnel management, this means how the leader understand his employees are manages them accordingly.
- Risk management, the construction industry is related with high level of risks. The employee and the leader should be capable of taking high level of risks.
To conclude it will be apt to state that the report exclusively sheds the light on the real estate industry in line with the labor market trends. The whole course of the discussion elaborates several factors such as labor market data of the country, the relevant and major changes over the past five years and the impact of different factors. Meanwhile, the second part of the discussion sheds light on the influencing factors over the past five years and the impact of different factors in the coming five years.
Deming, D.J., (2017). The growing importance of social skills in the labor market. The Quarterly Journal of Economics, 132(4), 1593-1640.
Frey, C.B. & Osborne, M.A., (2017). The future of employment: how susceptible are jobs to computerisation?. Technological forecasting and social change, 114,.254-280.
Lendlease.com (2018) Lendlease retrieved from: https://www.lendlease.com/[Accessed on 11th July, 2018]
Lendlease.com. (2018). [online] Available at: https://www.lendlease.com/-/media/llcom/investor-relations/asx-announcements/2016/19082016-asx-lendlease-annual-report.ashx [Accessed 12 Jul. 2018].
Line, N.D. & Runyan, R.C., (2012). Hospitality marketing research: Recent trends and future directions. International Journal of Hospitality Management, 31(2),.477-488.
Meng, X., (2012). Labor market outcomes and reforms in China. Journal of Economic Perspectives, 26(4), 75-102.
Preis, T., Moat, H.S. & Stanley, H.E., (2013). Quantifying trading behavior in financial markets using Google Trends. Scientific reports, 3,.1684.
Rothstein, J., (2012). The labor market four years into the crisis: Assessing structural explanations. ILR Review, 65(3), 467-500.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2019). Construction Industry Of Australia: Market Development And Factors Influencing Growth - Lendlease Essay.. Retrieved from https://myassignmenthelp.com/free-samples/importance-of-social-skills-in-labor-market.
"Construction Industry Of Australia: Market Development And Factors Influencing Growth - Lendlease Essay.." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/importance-of-social-skills-in-labor-market.
My Assignment Help (2019) Construction Industry Of Australia: Market Development And Factors Influencing Growth - Lendlease Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/importance-of-social-skills-in-labor-market
[Accessed 23 February 2024].
My Assignment Help. 'Construction Industry Of Australia: Market Development And Factors Influencing Growth - Lendlease Essay.' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/importance-of-social-skills-in-labor-market> accessed 23 February 2024.
My Assignment Help. Construction Industry Of Australia: Market Development And Factors Influencing Growth - Lendlease Essay. [Internet]. My Assignment Help. 2019 [cited 23 February 2024]. Available from: https://myassignmenthelp.com/free-samples/importance-of-social-skills-in-labor-market.