Chemical Engineering November 2010 - 76

Economic Indicators
2010
CHEMICAL ENGINEERING PLANT COST INDEX (CEPCI)
(1957-59 = 100)
Aug. '10
Prelim.
CE Index
Equipment
Heat exchangers & tanks
Process machinery
Pipe, valves & fittings
Process instruments
Pumps & compressors
Electrical equipment
Structural supports & misc
Construction labor
Buildings
Engineering & supervision
549.5
657.3
605.8
621.8
827.1
416.9
902.5
482.7
675.6
330.1
502.9
337.9
July '10
Final
550.7
659.2
611.1
626.0
821.7
416.8
902.4
481.6
679.7
328.7
506.7
338.4
521.9
615.8
560.9
599.1
752.0
400.7
895.9
462.1
630.8
327.5
491.1
346.0
2009
DOWNLOAD THE CEPCI TWO WEEKS SOONER AT WWW.CHE.COM/PCI
650
Aug. '09
Final
Annual Index:
2002 = 395.6
2003 = 402.0
2004 = 444.2
2005 = 468.2
2006 = 499.6
2007 = 525.4
2008 = 575.4
2009 = 521.9
Starting with the April 2007 Final numbers, several of the data series for labor and compressors have
been converted to accommodate series IDs that were discontinued by the U.S. Bureau of Labor Statistics
CURRENT BUSINESS INDICATORS
CPI output index (2007 = 100)
CPI value of output, $ billions
CPI operating rate, %
Producer prices, industrial chemicals (1982 = 100)
Industrial Production in Manufacturing (2007=100)
Hourly earnings index, chemical & allied products (1992 = 100)
Productivity index, chemicals & allied products (1992 = 100)
CPI OUTPUT INDEX (2007 = 100)
100
110
120
70
80
90
J F M A M J J A S O N D
1000
1300
1600
1900
2200
2500
J F M A M J J A S O N D
Current Business Indicators provided by Global Insight, Inc., Lexington, Mass.
600
550
500
450
400
J F M A M J J A S O N D
2008
LATEST
PREVIOUS
Sep. '10 =
88.2 Aug. '10 =
Aug. '10 = 1,762.4
Sep. '10 =
Sep. '10 =
Sep. '10 =
Sep. '10 =
Sep. '10 =
71.3 Aug. '10 =
88.4 Jul. '10 =
Jul. '10 = 1,754.4
71.3 Jul. '10 =
264.1 Aug. '10 = 260.3 Jul. '10 =
90.6 Aug. '10 =
90.7 Jul. '10 =
160.2 Aug. '10 = 158.2 Jul. '10 =
120.6 Aug. '10 = 119.9 Jul. '10 =
CPI OUTPUT VALUE ($ BILLIONS)
60
65
70
75
80
85
J F M A M J J A S O N D
YEAR AGO
88.2 Sep. '09 =
85.3
Jun. '10 = 1,756.4 Aug. '09 = 1,612.6
71.2 Sep. '09 =
258.7 Sep. '09 =
90.6 Sep. '09 =
153.7 Sep. '09 =
120.8 Sep. '09 =
CPI OPERATING RATE (%)
68.0
243.5
85.9
150.4
121.1
MARSHALL & SWIFT EQUIPMENT COST INDEX
(1926 = 100)
3rd Q
2010
M & S INDEX
Process industries, average
Cement
Chemicals
Clay products
Glass
Paint
Paper
Petroleum products
Rubber
Related industries
Electrical power
Mining, milling
Refrigeration
Steam power
1,473.3
1,534.4
1,530.0
1,505.2
1,518.3
1,428.5
1,542.1
1,444.5
1,637.0
1,579.3
1,419.2
1,576.7
1,804.8
1,502.3
2nd Q
2010
1,461.3
1,522.1
1,519.2
1,493.5
1,505.6
1,416.4
1,527.6
1,430.1
1,625.9
1,564.2
1,414.0
1,569.1
1,786.9
1,488.0
Annual Index:
2002 = 1,104.2 2004 = 1,178.5 2006 = 1,302.3 2008 = 1,449.3
2003 = 1,123.6 2005 = 1,244.5 2007 = 1,373.3 2009 = 1,468.6
1st Q
2010
1,448.3
1,510.3
1,508.1
1,481.8
1,496.0
1,403.0
1,515.1
1,416.4
1,615.6
1,551.0
1,389.6
1,552.1
1,772.2
1,475.0
4th Q
2009
1,446.5
1,511.9
1,508.2
1,483.1
1,494.3
1,400.1
1,514.1
1,415.8
1,617.6
1,560.5
1,377.3
1,548.1
1,769.5
1,470.8
CURRENT TRENDS
3rd Q
2009
1,446.4
1,515.1
1,509.7
1,485.8
1,495.8
1,400.4
1,515.1
1,416.3
1,625.2
1,560.7
1,370.8
1,547.6
1,767.3
1,471.4
1320
1335
1350
1365
1380
1395
1410
1425
1440
1455
1470
1485
1500
1st 2nd 3rd
Quarter
4th
Marshall & Swift's Marshall Valuation Service© manual. 2010 Equipment Cost Index Numbers reprinted and
published with the permission of Marshall & Swift/Boeckh, LLC and its licensors, copyright 2010. May not be
reprinted, copied, automated or used for valuation without Marshall & Swift/Boeckh's prior permission.
60 CHEMICAL ENGINEERING WWW.CHE.COM NOVEMBER 2010
C
apital equipment prices (as
reflected in the CE Plant Cost
Index) declined for the third
consecutive month in August, an
unusual phenomenon given that
equipment prices typically peak
around August of each year. The
operating rate from July to August
was flat.
According to the third quarter
2010 Situation and Outlook Report
from, the American Chemistry
Council (ACC; Washington, D.C.;
www.americanchemistry.com),
total output of the global chemical
industry is expected to grow by
8.9% in 2010, but then slow to a
growth rate of 5.6% in 2011.
Visit www.che.com/pci for
more on capital cost trends and
methodology. ■
http://WWW.CHE.COM/PCI http://www.americanchemistry.com http://www.che.com/pci http://WWW.CHE.COM
Chemical Engineering November 2010

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