Lendlease New York: A Premier Company for Development & Construction Services - Essay Sample

Introduction

Lendlease New York office is one of the best premier companies, that provide development and construction services in the Metropolitan area of New York. The company was established in 1979. The Lendlease New York office maintains a wide range of portfolio when it comes to both service offering and market sector experience. In the service offering sector, the Lendlease New York deals with program or project management, development, preconstruction, consulting, construction management, general contracting, and design/build. As a construction company, Lendlease is considering the purchase of a new electric forklift machine. Given the rate of technological evolution from propane and diesel forklifts to electric forklifts, the company wants to keep up with this advancement. Moreover, the company is among the best construction companies and as a result, the level of competition is so stiff (Schaufelberger, & Migliaccio, 2019). As a result, Lendlease needs to remain competitive so as not lose its value in the market sector; thus, the need to purchase the new electric forklift machine.

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Return on Investment (ROI) is used by businesses or investors to examine the wisdom of their investments. Often, it becomes difficult to quantify the performance in terms of returns of an investment in relation to other opportunities that are present during the investment time. However, using the Return on Investment on the investment provides one with the brutal truth. To get RIO of one's investment, one subtracts the cost of the investment from the proceeds of its sale and then divides that number by the cost of the investment. The results are usually expressed as a percentage. To get a clear picture of the real return, it is wise to include any fees or transaction costs that the investment cost (El-Halwagi, 2017). If money is lost on the investment, the ROI is usually a negative number. ROI helps in understanding the damage magnitude. Through ROI, businesses and investors can come up with strategies of recovering the losses incurred through the investment.

When used before investing, RIO impacts the purchase of new equipment. If it deems the return of the equipment as unfavorable, the investors will likely opt for other options such as buying cheaper equipment that could be of a lower quality or leasing the equipment from other owners rather than purchasing a new one (El-Halwagi, 2017).RIO provides the need for changes signal, and this affects the purchase of new equipment.

The new equipment would be beneficial to the Lendlease New York Office. With the use of electric forklifts; the company can deliver projects to its market sector faster than before. The electric forklifts compared to the propane and diesel forklifts produce less noise during operation, and this would result in a better and safer work environment for the employees of the company. The expenditure on planned and repair maintenance is minimal as the machines do not have engines, radiators or transmissions (Schaufelberger et.al, 2019).The forklifts have better turning radius specifications which increases their storage capacity, and productivity while reducing the product and truck damage.

The use of new equipment will make the company be at the top of its class in terms of functioning and technology. The new electronic forklifts will increase efficiency, which will enable the employees to work faster, thus increasing productivity (Schaufelberger et.al, 2019).Moreover, being ahead of the standard technological curve is a strategy that keeps the company ahead of the competition. Having the new equipment (electronic forklift) will give the company the freedom of determining whether to lease the machine to other companies in need or not when need be. Also, being an owner saves the company the struggle of negotiations and signing of contracts when leasing. It also protects the company the delays that are accompanied by other company's property.

References

El-Halwagi, M. M. (2017).A return on investment metric for incorporating sustainability in process integration and improvement projects.Clean Technologies and Environmental Policy, 19(2), 611-617.

Schaufelberger, J. E., & Migliaccio, G. C. (2019).Construction equipment management.Routledge.