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Cost and price indices
Engineering Costsand ProductionEconomics, 13 ( 1988) 157- 168 Elsevier Science Publishers B.V., Amsterdam - Printed in The Netherlands
The latest indices in Table 1 indicate that the erected costs of plants were still increasing as at July 1, 1987 in most countries. Japan is the outstanding exception to the general rule with virtually the same index since 1983, but West Germany and the Netherlands have had very small increases in the same period, and Canada and the U.S.A. show increases of 1% to 2% in the five-year period. In the year to July 1, 1987, Norway with 17.3%, Denmark with 8.8%, Australia with 7.5% and Sweden with 7.0% have had the largest increases. In the international comparison, Table 6, the dominant factor is the effect of the U.S. dollar revaluation relative to other currencies in the year to July 1, 1987. Apart from the Australian dollar which fell by about 3%, the currencies of the other eleven countries rose by from 6% to 22% relative to the U.S. dollar.
157
The method used to compile the indices has been described in previous articles [l-3]. In brief, a pseudo total erected cost is arrived at by calculating costs of materials, comprising 10 tonne cement, 1 tonne reinforcing bar, 3 tonne steel sections and 6 tonne steel plate, at basic ex-works prices, and calculating total labour costs for 300 hours of mechanical engineering and 230 hours of construction labour. These hours are assumed to be at 100% performance and apply to Japan and the U.S.A. For other countries lower performances for construction labour are assumed, 50% for the U.K., 60% for France, Italy and Norway, 70% for Denmark and Sweden, 75% for West Germany, 80% for Belgium and the Netherlands, 85% for Australia and 90% for Canada, all wih a resultant increase in the number of hours. The total of
TABLE 1 indices of erected costs of plantsa as at January 1st, unless otherwise stated ( 1975 = 1.001
Belgium Denmark France W. Germany Italy Netherlands U .K. Australia Canada Japan Norway Sweden U.S.A.
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1986 July 1
1987
1987 July 1
1.09 1.02 1.13 1.03 1.19 1.09 1.30 1.15 1.20 1.11 1.10 1.05 1.11
1.16 1.06 1.25 1.07 1.43 1.14 1.45 1.33 1.33 1.26 1.22 1.16 1.18
1.27 1.16 1.34 1.11 1.67 1.22 1.61 1.46 1.46 1.39 1.35 1.24 1.27
1.29 1.27 1.46 1.14 1.92 1.18 1.76 1.57 1.56 1.50 1.45 1.37 1.39
1.40 1.38 1.59 1.21 2.27 1.24 2.04 1.71 1.76 1.58 1.53 1.49 1.53
1.50 1.54 1.82 1.29 2.67 1.31 2.35 1.93 1.95 1.70 1.69 1.67 1.68
1.64 1.64 2.05 1.38 3.15 1.42 2.56 2.15 ‘2.24 1.79 1.79 1.81 !.85
1.89 1.99 2.50 1.53 3.89 1.54 2.78 2.58
1.99 2.14 2.73 1.52 4.38 1.54 2.92 2.77
2.01 2.19 2.84 1.56 4.71 1.57 3.10 2.91
2.06 2.32 2.97 1.60 5.12 1.59 3.34 3.15
2.09 2.38 3.04 1.61 5.26 1.61 3.48 3.21
2.07 2.41 3.10 1.60 5.31 1.63 3.56 3.36 2.57 1.87 2.73 2.77 2.10
2.10 2.59 3.17 1.61 5.53 1.61 3.67 3.45 2.61 1.86 2.99 2.89 2.12
2.46 2.42 2.47 2.52 2.55 1.84 2.07 2.05 1.96
1.84 2.18 2.26 2.09
1.84 2.20 2.37 2.13
1.89 2.43 2.57 2.19
1.85 2.55 2.70 2.08
“For method used to calculate costs and indices see Eng. Costs Prod. Econ., 6 ( E982 ) 272 and, 7 ( 1982 ) 18.
Ql67-188X/88/$03.40
@ I988 Elscvicr Scicncc
I
F.Fr.
I
France
Netherlands
1 II IV Guilder
Lire
1
Italy 11 111 IV
DM
I II III IV
W. Germany
II III IV
D.Kr
B.Fr.
I II IV
II III IV
Denmark
Belgium
Locai currency
70 780 830
10,700 181,000 153,000 177,000
67 700 640 740
120 1,080 1,040 1,320
190 1,610 1,950
920 11,500 9,800 13,900
1974 (Prices per tonne)
Price indices for: I Ordinary Portland cement II Steel re-inforcing bar 111 Steel sections (heavy) IV Steel plate
TABLE 2
119 76 105
134 75 105 118
110 85 105 95
112 96 100 113
116 95 81
112 75 90 78
1975
126 73 105
152 83 128 127
110 80 109 93
131 99 113 113
117 87 76
130 68 102 71
1976
132 78 105
188 104 154 136
116 78 106 91
135 105 124 105
122 97 81
140 77 109 76
1977
136 73 81
210 117 174 146
118 77 I01 85
148 108 141 106
129 88 88
144 72 103 70
1978
138 74 d3
246 135 188 165
120 76 108 91
172 113 144 110
133 93 91
150 74 116 76
1979
394 143 214 203 169 91 89
150 90 85
145 83 114 108
239 141 171 127
203 118 108
186 85 128 86
1981
321 146 207 188
131 84 106 96
205 136 157 121
167 ii7 104
168 85 117 83
1980
187 86 119
115
515 157 304 308
177 81 132 122
293 148 214 203
232 149 154
250 117 163 129
1983
183 107
468 155 302 270
167 104 164 127
27’3 168 227 182
214 146 147
237 115 173 113
1982
196 78 ii9
549 178 320 311
177 86 133 122
299 167 219 203
229 156 152
252 iO5 160 123
1984
202 93 120
584 209 338 339
183 91 133 125
315 175 220 204
242 158 154
270 ii5 160 127
1985
207 99 120
616 215 359 350
184 96 125 126
319 201 230 212
240 158 160
272 122 153 133
First half
1986
634 166 340 345 210 92 123
625 186 353 350 208 99 122 208 99 123
187 96 ii0 117
185 95 120 122 186 96 115 117 634 156 346 350
334 206 221 219
239 158 172
280 121 148 128
First half
324 204 226 216
240 158 160
272 122 153 130
average
Annual
1987
328 206 221 219
240 158 160
272 122 153 126
Second half
-
Can.$
I[
Canada
N.Kr.
SW.Kf
I II III I II III IV I II III IV
Norway
Sweden
U.S.A. 30.40 215 230 230
125 1,225 1,480 1,715
!72 1,450 1,550
8,570 77,750 47,750 75,250
32.00 205 194 188
26.50 165 155 160
10.5 96.0 90.0 96.0
119 99 121 117
115 98 80 72
117 104 92
106 67 102 66
120 125 121 125
119 12i 123 As III
I40 811 135 132
132 91 127 126
132 lOd\ 9% 73
128 101 102
112 71 122 84
:40 126 135 141
137 !43 842
173 136 157 141
I41 92 135 137
149 108 83 66
141 104 107
115 67 133 90
153 115 141 155
154 15? 156
205 144 178 154
155 103 152 154
163 113 94 78
152 99 107
126 76 140 103
170 121 156 170
168 166 169
231 142 183 167
174 128 167 171
178 128 103 81
168 112 114
133 87 145 113
191 142 184 193
180 180 184
277 153 236 176
191 136 184 190
201 147 116 87
192 124 127
174 95 150 109
217 150 212 216
199 206 211
357 183 248 186
233 145 165
185 79 153 104
202 137 206 213
209 117 235 248
281 157 172 152
262 148 165
183 80 147 98
306 168 262 266
218 127 240 247
302 157 172 149
273 140 132
183 86 146 98
315 164 262 270
316 284 283
443 206 285 230
223 129 241 244
324 166 177 153
280 145 156
183 87 143 96
329 171 262 273
328 291 298
449 228 307 240
221 130 232 188
343 180 179 170
280 159 174
183 74 121 87
338 174 269 270
345 304 317
462 226 313 250
21s 131 231 190
,248 188 182 175
280 169 181
183 68 119 77
338 176 265 267
353 313 331
462 221 329 260
218 131 232 189
346 184 181 173
280 164 178
183 71 120 82
338 175 267 269
349 309 324
462 224 321 255
214 128 233 195
356 189 174 178
290 176 177
180 60 116 74
340 176 266 269
361 326 338
462 212 331 260
prices given for all other countries. See Vol. 5, PP. 245-24cJ.
208 128 230 231
231 260 1139 157 122 165 90 125
215 128 129
185 86 156 108
294 177 262 266
300 2?7 272
229 ’ 268 228 254 236 267 252 162 243 243
443 203 278 214
443 203 279 214
405 183 248 186
For price variations and material specifications, see Vol. 5, pp. 159-l 6 1 and 247-254. aJapanese steel prices are “market” prices and are not directly comparable with the basic (producer)
I J.S.$
Yen
I II III IV
Japana
II III IV
A.$
I II II! IV
Australia
Pound
I II III FV
U.K.
160 TABLE 3 Indicesof averagehourly earningsof adulr manualaworkers in selected industries Country
ISICb
1974
( I974= 100 )
1975
1976
1977
1978
1979
1980
Oct. Local currency
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Belgium
351 371 382 5
B.Fr.
157.25 171.89 133.94 130.07
118 I08 114 I16
131 122 125 132
147 132 137 146
152 137 142 150
165 157 156 167
183 172 169 180
France
351 371 382 5
F.Fr.
12.02 I1 71 11.04 10.08
II4 121 115 115
129 136 I35 137
145 I52 I53 I54
165 168 169 171
190 189 189 195
219 208 227 227
W. Germany
351 3ii 382 5
DM
!!.02 IO.05 9.89 10.00
106 105 I08 104
I15 113 114 110
124 120 I23 117
127 126 129 124
128 133 135 134
137 I41 146 144
Italy
351 371 382 5
Lire
I22 124 124 125
151 154 158 I58
190 183 188 187
232 205 210 218
191 255 262 279
351 313 321 327
Netherlands
351 37 382 5
GUlldtX
10.73 9.47 9.70
115 109 II2 114
123 120 120 123
134 130 130 135
141 139 137 148
148 147 143 162
155 I54 I53 170
U.K.
35112 371 382 5
Pound
1.17 1.16 1.10 I .04
I28 130 126 128
140 147 140 143
150 158 155 157
174 184 177 175
208 209 207 201
247 247 240 247
Australia’
35 t/2/3 37 3811213 5
A.%
3.79 3.73 3.42 3.55
I13 II2 I08 112
127 I28 123 I28
139 144 135 I41
150 I50 143 149
173 165 157 162
195 192 I75 181
Canada
35112 37112 382 5
Can.%
4.74 5.43 5.13 6.77
II3 116 II5 119
128 127 126 132
140 141 136 I48
150 152 147 I56
161 166 162 167
I86 183 176 I86
U.S.A.
351 371 382 5
U.S.$
I10 I10 I08 106
122 120 I15 113
133 I35 126 I18
142 149 136 127
I54 164 148 136
(3rdQr)
169 Id0 164 147 (3rdQr)
Denmark
35112 38212 5
D.Kr.
26.68 27.92 29.17
115 II9 114
129 131 129
143 542 144
I59 160 160
177 177 180
I89 191 195
Norway
35112 382 5
N.Kr.
22.12 23.39 26.39
113 118 116
137 140 136
153 I”5 151
165 168 165
‘
3 173 I71
185 198 189
(4thQr)
(41hQr)
169 167 I61 170 ( -Dec.
I85 179 175 190 ( -Dec.
35 SW&. 371 382 5 (12 months to Dec. I974 35112 371 382 5
Yen
1486 I542 1325 1255 IO.60
18.50 20.90 19.37 22.45
) I 115.8 1126.1 940.8 722.8
121 120 II8 I19 ( -Dec. I975 )
135 132 130 133 ( -Dec. I976
112 II8 II4 117
I21 I26 122 132
)
145 141 141 149 (-Dec.1977)
153 151 149 I58 ( -Dec. I978
132 138 133 148
139 143 139 160
‘For Japan, manual and non-manual workers, including holiday pay ( see: Vol. 5, pp. 75-77 ) . bIntemational Standard Industrial Classification: ‘From 1983 onwards, indices apply to May and November. 35 Manufacture of chemicals 353 Petroleum refineries 35 I Manufacture of industrial chemicals 37 Basic metal industries 35i Manufacture of other chemicals 371 Iron and steel basic industries
)
154 150 150 172
)
165 I62 I61 183
1
161
Oct.
Apr.
198 186 189 194
Oct.
Apr.
208 200 200 202
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
221 204 212 210
223 224 216 215
226 226 219 218
229 230 220 220
233 232 224 223
235 233 228 226
235 233 228 226
239 236 231 231
247 249 253 263
272 273 276 289
284 289 289 296
300 304 306 317
323 308 323 329
334 327 337 340
340 330 340 350
353 346 356 359
361 355 364 370
368 360 372 379
374 364 378 386
376 368 385 392
146 149 153 151
149 I56 I58 153
I53 I54 I59 I56
I57 I61 162 I61
I59 160 164 162
162 I61 !64 I65
164 163 169 166
166 I71 177 166
I69 I71 178 168
I71 173 179 172
178 180 187 I72
180 183 189 176
414 385 395 406
443 409 419 448
477 442 453 484
512 476 490 518
543 507 523 547
578 542 559 585
605 557 580 602
629 590 610 631
659 614 636 661
662 619 639 664
697R 636R 6641 690
727 672 702 709
183 I75 172 188
190 177 I74 187
193 I80 176 189
194 180 I76 189
I93 I81 178 I95
196 183 179 I95
198 184 180 197
I97 I85 I81 199
325 342 306 309
335 369 319 323
352 380 328 328
363 393 345 338
378 406 358 349
384R 4llR 373 363
40@ 411 379 374
421 455 390 388
258 265 264 260
270 276 275 272
271 276 264 295
285 283 274 302
295 298 284 313
297 300 285 315
299 317 303 321
310 324 313 330
I75 172 I71 190
I65 164 162 180 275 272 263 266
283 291 282 283
210 214 204 215
295 296 286 289
313 332 301 306
246 249 244 250
209 214 202 212
221 226 209 216
228 240 216 228
232 240 219 207
240 252 222 202
244 256 224 207
253 265 231 203
254 272 230 211
260 277 233 204
265 276 234 211
273 2GO 240 i39
280 287 243 219
I91 197 178 I58
I95 203 182 162
204 208 183 169
206 196 186 170
215 218 192 172
(IstQr)
( 3rd Qr 1
(IstQr)
(3rdQr)
225 222 I97 174 (3rdQr)
228 229 200 I75 (JstQr)
234 230 205 177 (3rd Qr)
233 238 207 176 (IstQr)
238 237 207 181
(3rdQr)
220 226 I95 I71 (1st Qr)
(3rd OrI
243 238 210 180 (1st Qrl
246 241 252
258 250 261
263 259 271
269 261 282
270 264 285
272 266 287
271 267 295
301 284 320
233 248 235 (4thQr)
241 252 238 (2ndQr)
255 269 255 (4thQr)
258 272 260 (2ndQr)
268 281 269 (4thQr)
281 287 281 (2ndQr)
312 308 306 (4th QrI
329 345 337
295 285 276 269 (-June)
298 289 282 283 (-Dec.)
313 302 294 300 (-June)
213 200 192 227
216 203’ 196 233
219 202 197 237
210 208 211 199 211 204 ( 4th Or 1 203 194 194 203 (-Dec.)
233 232 240 196 209 209
222 232 230
(ZndQr)
( 4th Qr 1
216 209 206 213 (-June)
213 209 210 208 ( -Dec.
1
221 232 228 (2ndQr) 231 224 220 219 (-June)
236 228 225 223 (-Dec.)
194 186 177 173 177 I87 179 182 I79 I75 184 I81 I76 I71 176 213 201 201 205 198 _ 372 Non-ferrous metal basic industries 38 I Manufacture of fabricated metal products, excl. machinery 382 Manufacture of m;?chinery excl. electrical 383 Manufacture of electrical machinery 5 Construction
256 246 240 240 ( -June)
261 252 247 240 (-Dec.)
275 269 259 249 ( -June)
277 269 263 256 ( -Dec.)
197 189 186 219
202 189 190 223
206 194 192 224
209 I98 194 225
(2nd OrI
351 371 382 5 351 371 382 5 351 371 382 5 351 37 382 5 35 112 371 382 5
W. Germany
Italy
Netherlands
U.K. Pound
Guilder
Lire
DM
F.Fr.
1.60 1.24 1.41 1.30
17.28 19.53 16.38 17.27
2927 3084 2677 2334
18.18 17.09 16.32 15.30
20.43 22.25 18.99 17.24
32.28 33.50 34.42
129 157 126 129
116 110 114 115
126 130 127 125
108 109 109 104
143
126 127 118 115
143 181 142 143
124 122 !22 124
166 161 162 159
120 118 116 112
138 136
144
131 128 128
116 119 114
133 126 128 136
153 194 157 155
137 133 134 139
196 192 194 190
130 126 126 120
160 162 156 154
145 140 143
149 137 140 15C
178 231 180 172
143 141 141 150
240 2 14 220 233
133 131 133 128
188 182 172 172
163 157 159
155 145 148 155
214 265 214 200
150 151 145 163
303 264 272 282
136 139 140 139
209 205 193 195
180 174 179
169 166 160 172
254 312 252 246
158 156 135 172
365 324 333 334
145 149 152 151
242 239 232 227
192 190 196
187 180 173 187
France
D.Kr.
120 110 116 119
292 356 280 278
164 164 162 182
435 402 414 420
154 157 159 157
276 270 260 265
217 212 212
205 198 194 203
1981
35 l/2 38213 5
267.3 287.1 227.7 255.0
1979
Denmark ( 3rd Quarter of each year )
B.Fr.
1978
351 371 382 5
1977
Belgium
Local currency
1976
1980
1975
ISICb
Country
1974
( 1974 =: 100 )
Indices of average hourly labour costs of adult manuala workers in selected industries
TABLE 4
313 389 305 295
175 175 174 192
509 468 482 508
162 164 166 164
321 319 301 301
245 238 246
217 216 208 216
1982
347 452 329 325
180 178 175 190
579 537 556 574
168 171 172 170
355 347 330 338
264 255 265
230 220 221 222
1983
376 501 352 345
195 183 179 191
645 590 617 632
174 174 177 174
384 365 348 356
283 274 285
235 226 228 231
1984
405 544 391 3?2
197 185 182 193
703 65 1 677 693
180 182 187 177
408 393 373 378
294 284 304
243 250 233 235
1985
421 558 413 392
200 186 183 198
706 656 680 697
181 184 188 181
416 398 380 385
301 290 311
245 251 237 238
Apr.
1986
439 558 419 404
202 188 184 200
742R 674R 706R 724
189 192 196 181
423’ 402 387 392
299 292 320
245 251 237 238
Oct.
468 626 437 425
202 191) 186 204
782 722 754 751
191 195 198 186
429 411 398 404
336 312 350
249 254 241 244
Apr.
1987
Can.$
Yen
N.Kr.
35112 371/2 382 5 35112 371 382 5 351/2 382 5 35 371 382 5 351 371 382 5
Japan ( Annual averages )
Norway ( 3rd Quarter of each year )
Sweden ( 4th Quarter of each year )
U.S.A. 7.51 7.61 6.82 8.95
26.09 30.31 27.5 1 30.76
30.97 32.75 35.10
1295 1306 1092 839
5.93 6.79 6.21 7.99
4.81 4.74 4.34 4.51
129 129 123 129 128 133 127 134 123 131 123 133 139 142 138 146 138 138 141 125 123 115 114
113 112 108 112 113 118 116 120 113 121 113 117 114 120 118 126 123 122 123 112 112 108 108
Indices apply at October of each year unless othetwise stated. aand bSee Table 3. ‘First Quarter. dSecond Quarter. ‘From 1983 onwards, indices apply to May and November.
U.S.$
SW&.
A.$
35 l/2/3 37 38 l/2/3 5
Australia’
136 13g 126 122
161 148 154 162
155 157 154
134 144 135 151
140 150 139 151
141 145 136 142
145 152 136 129
174 162 167 175
167 171 168
144 151 143 164
150 165 149 157
152 153 ’ 145 152
157 168 149 140
192 176 184 192
165 176 174
159 159 155 178
161 182 168 174
176 168 160 164
172 197 166 151
217 205 206 219
188 201 192
171 172 167 189
186 199 183 192
198 195 180 184
198 226 182 166
237 218 223 241
202 214 207
181 187 178 207
218 237 213 223
219 222 213 224
212 252 188 177
249 235 244 251
227 237 235
196 196 190 216
241 269 232 244
258 260 255 262
230 267 203 188
278 256 263 268
241 255 242
208 207 198 234
257 286 242 219
278 281 281 276
246 263 213 190
294 278 291 284
262 277 263
216 207 202 238
271 301 252 220
287 293 281 313
260 272 224 200
339 312 320 314
278 291 280
225 219 209 242
283 319 258 225
319 321 306 337
259 287 227 202
352d 324d 330d 334d
293’ 300” 296’
230 221 207 244
288 318 259 232
321 323 308 340
264 286 228 207
370 341 331 350
325 321 322
233 224 211 251
297 322 265 230
325 344 329 349
270 287 231 206
390d 35gd 346d 366d
348’ 364’ 360’
235 223 212 255
305 330 270 242
337 352 340 358
1.50 1.42 1.39 1.42
1987 Jan 2 Apr. 1 Jul. 1 Oct. 1 39.9 37.6 37.9 38.3
50.1 47.0 44.6 42.0
1.38 1.31 1.33 1.31
1.40 1.39 1.38 1.39
7.26 6.85 6.92 7.10
8.60 8.09 7.63
8.90
6.35 6.04 6.09 6.15
7.50 7.17 6.95 6.62
4.77 4.29 4.71 4.94 4.53 4.21 4.19 5.30 6.52 7.60 8.81 8.81 6.92
F.Fr.
France
1.92 1.82 1.83 1.85
2.45 2.33 2.18 2.02
2.62 2.44 2.51 2.34 2.03 1.82 1.85 2.21 2.40 2.54 2.88 2.88 2.18
DM.
W. Germany
1328 1295 1323 1333
1674 1588 1495 1396
636 649 803 880 857 824 876 127 337 514 1768 1866 1496
Lira
Italy
58 46 ,47 147
99 78 63 54
285 298 298 275 215 213 217 219 244 235 239 233 170
Yen
Japan
2.16 2.06 2.06 2.08
2.75 2.63 2.45 2.28
2.72 2.62 2.67 2.45 2.19 1.99 2.01 2.44 2.65 2.85 3.24 3.25 2.45
Guilder
Netherlands
7.33 6.84 6.70 6.74
7.55 7.27 7.45 7.18
5.56 5.18 4.98 5.30 5.25 5.01 4.96 5.66 6.41 7.31 8.24 8.46 7.36
Krone
Norway
6.73 6.34 6.39 6.46
1 7.57 7.35 7.08 6.90
4.47 4.11 4.38 4.38 4.56 4.26 4.24 5.04 6.22 7.65 8.33 8.47 7.13
Krbna
Sweden
‘Annual rates are averages of rates on the first trading day in each of the four quarters in the year and of the first quarter in the following year.
1.47 1.38 1.52 1.59
1986 Jan. 2 Apr. 1 Jul. 1 Oct. 1
6.13 5.68 6.07 5.94 5.48 5.16 5.60 6.97 8.24 9.10 10.4 10.4 8.10
1.01 0.987 1.05 1.16 1.17 1.17 1.19 1.24 1.23 1.30 1.36 1.39
0.981
39.5 36.5 39.0 35.8 31.9 28.7 29.1 36.4 44.5 50.4 58.3 58.2 44.7
0.760 0.802 0.905 0.87 1 0.887 0.863 0.869 0.977 1.11 1.15 1.42 1.49
0.694
1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
Krone
Can.$
B.Fr.
A.$
Denmark
Canada
Belgium
Australia
Currency exchange ratesa relative to U.S. Dollar
TABLE 5
0.670 0.623 0.619 0.620
0.68 1 0.646 0.692
0.692
Pound 0.4 1 0.448 0.545 0.579 0.527 0.472 0.426 0.49 1 0.572 0.663 0.763 0.77 1 0.676
U.K.
165 materials and labour costs give the erected costs and the resultant indices are based on January 1, 1975= 1.0. Previous articles, particularly one dealing with costs in the U.S.A. C4], have pointed up the possible variations in erected costs indices arising from differences between national and regional and local site costs. In the article on U.S.A. costs it was shown that variations for four selected regions ranged from 5% below to 20% above national averages. It was suggested too that it would be prudent to allow a margin of t 10%of the erected cost to cover local variations in rates of pay and construction productivity. This possibility of variatiocn;at specific sites relative to national averages should always be borne in mind. The increases in the indices of erected costs (Table 1) in the year to July 1, 1987 vary considerably from one country to another. Expressed as percentages they are as follows: Belgium Denmark France W. Germany Italy Netherlands U.K.
0.5 8.8 4,3 0.6 5.1 1.9 5.5
Australia Canada Japan Norway Sweden U.S.A.
7.5 2.4 0.5 17.3 7.0 1.9
The average percentage change is 4.9%. These changes are due largely to increased hourly labour costs (Table 4). All thirteen countries show increases, ranging from 2% to TABLE
20%, for mechanical engineering and construction, the two classifications used in compiling the indices. Materials prices (Table 2) on the other hand have been quite steady in the same period and most changes could be regarded as adjustments to bring prices into line with those of competitors. As Table 7 indicates there is a large degree of uniformity in prices for each of the four materials listed, except in the case of Italy. For Japan the indices quoted relate to “market” rather than basic, ex works, prices (see footnote to Table 2).
The relationship of the various currencies to the U.S. dollar in the first three quarters of 1987 are shown in Table 5. Using rates at April 1 to compare the first halves of 1986and 1987, all currencies listed have appreciated over the year relative to the U.S. dollar, except the Australian dollar. The percentage changes were as follows: Belgium Denmark France W. Germany Italy Netherlands
20.0 20.3 15.8 21.9 18.5 2 1.7
U.K. Australia Canada Japan Norway Sweden
8.5 -2.9 6.0 18.0 6.0 13.7
The average change is 15.5%. It will be seen there was a degree of stabilisation of the dollar against most of the other
6
Comparison
Belgium Denmark France W. Germany Italy Netherlands U.K. Australia Canada Japan Norway Sweden U.S.A.
of erected costs of plants with U.S.A. = I .O, as at January 1st unless otherwise stated 1975
1976
1977
1978
1979
I980
1981
1982
1983
1984
1985
1986
1986 July I
1987
1987 July I
1.07 1.06 0.85 1.02 0.86 1.04 0.77 0.92 0.92 0.58 I.16 1.24 -
I .oo 1.01 0.93 0.98 0.88 1.05 0.81 0.89 0.95 0.55 I.16 I.18 I.0
I.01 0.98 0.89 0.99 0.81 I .05 0.70 0.94 I .05 0.59 1.28 1.24 -
I.10 0.98 0.87 I .02 0.82 1.12 0.72 0.85 0.98 0.65 1.25 I.13
I.18 I.10 0.96 I.12 0.91 1.13 0.80 0.87 0.87 0.82 1.29 I.19
1.36 I.13 I .02 I .20 I.01 I.18 0.94 0.84 0.90 0.79 I.31 1.26
I.21 1.05 1.04 I.13 I.01 I.12 I .08 0.90 0.90 0.77 1.32 1.29
0.92 0.80 0.82 0.88 0.78 0.82 0.86 0.89 0.92 0.73 1.07 0.99
0.8 I 0.76 0.75 0.85 0.79 0.82 0.79 0.86 0.92 0.60 I .oo 0.90
0.72 0.72 0.68 0.76 0.74 0.73 0.68 0.80 0.86 0.62 0.92 0.76
0.60 0.62 0.58 0.64 0.65 0.61 0.59 0.76 0.8 I 0.58 0.82 0.70
0.68 0.7 I 0.67 0.73 0.72R 0.69 0.70 0.67 0.76 0.65 0.89 0.79
0.83R 0.87R 0.84 0.89 0.88 0.83 0.80 0.73 0.80 0.82 I.15 0.95
0.92 0.98 0.90 I.01 1.00 0.96 0.88 0.68 0.80 w.94 I.15 I .03 --
1.03 I.15 0.99 I.12 I.11 I.06 0.90 0.78 0.85 0.96 1.28 I.14
166 TABLE7 Comparisonofprices, withU.S.A.=l.O.for: IOrdinary Portlandcemenl IISteelre-inforcingbar 111 Steel sections (heavy) IV Sreelplate 1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987 isthaif
Isthalf
Zndhalf
Belgium
I ii iii IV
0.77 I.35 1.08 1.53
0.78 I.11 0.87 I.10
0.77 1.02 0.88 0.87
0.84 1.24 0.96 0.94
0.88 I.17 0.90 0.86
0.91 1.08 1.02 0.94
0.92 I.15 0.93 0.90
0.77 0.91 0.73 0.66
0.77 1.08 0.72 0.66
0.72 1.06 0.59 0.63
0.57 0.73 0.47 0.50
0.63 0.82 0.49 0.54
0.79 1.06 0.67 0.91
0.92 I.18 0.67 0.95
1.03 1.32 0.70 1.03
Denmark
I ii IV
1.02 1.22 1.38
1.07 1.26 1.03
0.92 I.18 0.84
0.91 I.32 0.85
0.95 I.16 0.88
0.93 1.05 0.87
1.05 I.15 0.82
0.90 0.93 0.62
0.77 1.03 0.65
0.82 1.05 0.64
0.59 0.85 0.49
0.65 0.88 0.52
0.80 1.07 0.92
0.91 1.19 0.93
1.00 1.32 1.07
France
I
0.83 1.05 0.94 1.20
0.86 I.13 0.87 1.29
0.84 1.16 0.85 1.09
0.77 I.16 0.83 0.89
0.83 1.25 0.92 0.87
0.93 1.05 0.92 0.88
I.01 I.19 0.92 0.87
0.88 0.98 0.70 0.65
0.80 I.01 0.68 0.69
0.73 0.84 0.54 0.62
0.59 0.73 0.44 0.52
0.64 0.77 0.47 0.54
0.79 I.08 0.67 0.90
0.91 I.19 0.65 1.00
1.00 I.31 0.70 1.05
ii iii IV
0.84 1.24 1.06 1.23
0.83 1.14 0.98 1.06
0.'4 I.13 0.94 0.94
0.77 I.17 0.93 0.91
0.83 1.20 0.90 0.87
0.84 1.06 0.98 0.93
0.82 1.08 0.86 0.87
0.72 0.90 0.69 0.73
0.74 1.10 0.82 0.73
0.73 C.88 0.62 0.63
0.59 0.73 0.47 0.53
0.63 0.79 0.54 0.57
0.79 1.03 0.65 0.94
0.93 I.17 0.68 0.98
1.03 1.31 0.70 1.04
I ii iii IV
0.55 1.32 1.04 1.21
0.61 0.98 0.89 1.19
0.51 0.95 0.83 0.96
0.53 1.09 0.86 0.87
0.56 1.12 0.88 0.85
0.64 1.08 0.91 0.90
0.68 1.03 0.86 0.87
0.61 0.78 0.61 0.65
0.59 0.76 0.65 0.67
0.57 0.75 0.57 0.63
0.48 0.62 0.48 0.53
0.49 0.73 0.50 0.57
0.62 0.88 0.65 0.90
0.74 0.71 0.71 1.01
0.79 0.83 0.74 1.04
I ii IV
0.85 1.33 1.33
0.88 1.06 1.24
0.83 1.09 I.13
0.88 1.26 1.13
0.92 I.16 0.86
0.92 1.06 0.88
0.90 I.20 0.81
0.79 0.98 0.62
0.76 1.14 0.68
0.72 0.93 0.61
0.61 0.66 0.52
0.64 0.80 0.55
0.83 1.03 0.88
0.97 I.20 1.02
1.08 1.25 1.09
I ii iii IV
0.70 1.05 0.92 0.98
0.78 I.11 0.98 1.05
0.72 1.22 0.89 0.85
0.75 1.20 0.89 0.81
0.84 1.17 0.89 0.86
1.00 I.13 I.17 0.91
1.30 1.41 1.23 0.96
I.21 1.22 1.07 0.74
I.10 1.23 0.83 0.68
0.95 I.17 0.70 0.59
0.74 0.90 0.58 0.49
0.78 1.03 0.65 0.54
0.92 I.15 0.78 0.82
0.95 I.13 0.83 0.86
1.00 I.16 0.87 0.88
I
1.25 I.11 0.97 1.00
I.14 1.23 0.90 0.96
I.13 1.50 0.94 0.98
1.05 1.45 0.86 0.88
I.08 1.42 0.86 0.88
1.02 1.23 0.84 0.84
1.06 1.35 0.90 0.90
1.14 1.47 0.89 0.88
1.15 1.56 0.80 0.82
I.12 1.64 0.70 0.68
1.06 I.41 0.67 0.67
0.90 I.21 0.59 0.60
0.93 1.23 0.63 0.80
0.93 1.20 0.63 0.79
1.06 I.41 0.70 0.87
ii iii IV
I.11 0.97 0.86 0.83
1.04 I.19 0.83 0.86
I.13 1.34 0.91 0.93
1.09 1.14 0.84 0.88
0.99 0.97 0.75 0.78
0.99 0.90 0.79 0.7e
1.02 0.92 0.83 0.79
I.10 0.95 0.84 0.78
1.20 1.06 0.78 0.76
I:25 1.11 0.76 0.71
I.15 0.88 0.69 0.68
I.15 0.93 0.68 0.68
I.16 0.92 0.70 0.84
I.19 0.93 0.70 0.83
1.25 0.98 0.72 0.84
Japan
I IV
0.99 0.77
0.84 0.75
0.81 0.83
0.84 0.92
I.06 I.14
1.02 1.04
1.19 0.98
1.18 0.91
1.03 0.73
1.05 0.73
0.96 0.70
0.98 0.74
1.30 1.24
1.52 I.41
1.58 1.37
Norway
I ii iii
1.02 I.21 I.21
1.07 1.37 0.99
I.11 1.50 1.08
1.07 1.43 I.01
1.05 1.22 0.90
1.09 1.17 0.92
I.15 1.24 0.94
1.07 1.12 0.75
0.99 1.19 0.76
0.97 I.16 0.65
0.81 0.85 0.43
0.84 0.89 0.51
0.97 1.11 0.68
0.97 I.19 0.72
I.11 1.33 0.74
Sweden
I
0.92 1.27 1.44 1.67
0.99 1.37 1.04 I.11
0.96 1.43 1.05 0.98
1.00 1.52 0.91 0.80
0.95 1.37 0.87 0.83
0.99 1.33 0.93 0.83
I.05 1.45 0.95 0.80
0.93 I.14 0.75 0.63
0.83 I.12 0.74 0.65
0.74 1.00 0.62 0.60
0.66 0.82 0.53 0.52
0.71 0.87 0.56 0.56
0.87 1.07 0.68 0.92
0.96 1.19 0.74 1.00
1.05 1.30 0.74 1.05
ii iii IV W.Germany
ilaiy
Netherlands
U.K.
Australia
I
ii iii iv Canada
I
ii iii IV
SeefootnoresinTable2.
TABLE
8
Comparison
of hourly labour costs, with U.S.A. = I .O ISH.?
1974
1975
1976
1977
1978
.979
I980
1981
I982
1983
I984
Ckt.
0.62 0.65 0.65 0.62
0.72 0.70 0.74 0.72
0.79 0.79 0.83 0.78
0.87 0.89 0.93 0.89
0.44 0.55 0.51
0.50 0.65 0.61
0.5gb 0.73b 0.69b
0.64 0.82 0.78
0.7gb 0.97b 0.95h
0.53 0.54 0.57 0.43
0.45 0.43 0.49 0.39
0.53 0.52 0.58 0.45
0.61 0.57 0.65 0.51
0.66 0.62 0.71 0.55
0.72 0.69 0.80 0.62
0.74 0.58 0.84 0.63
0.67 0.62 0.77 0.59
0.56 0.49 0.65 0.51
0.63 0.57 0.75 0.57
0.73 0.62 0.85 0.66
0.86 0.74 I .02 0.74
0.94 0.84 I.13 0.85
0.68 0.57 0.71 0.53
0.66 0.53 0.71 0.53
0.62 0.58 0.68 0.50
0.53 0.48 0.59 0.46
0.59 0.54 0.66 0.50
0.67 0.58 0.74 0.57
0.78R 7.691 ~.87R 0.65
0.87 0.79 0.99 0.73
I .06 I .04 1.22 I.1 I
0.69 0.67 0.77 0.86
0.69 0.64 0.80 0.76
0.61 0.65 0.71 0.68
0.53 0.32 0.59 0.57
0.58 0.59 0.65 0.62
0.67 0.64 0.74 0.72
0.77 0.74 0.85 0.82
0.84 0.82 0.99 0.93
0.64 0.56 0.65 0.45
0.75 0.62 0.75 0.57
0.58 0.17 0.58 0.45
0.53 0.43 0.57 0.41
0.48 0.43 0.50 0.37
0.40 0.39 0.42 0.33
0.47 0.46 0.51 0.38
0.52 0.48 0.55 0.41
0.51 0.46 0.55 0.41
0.59 0.57 0.63 0.48
0.78 0.73 0.78 0.69
0.8 I 0.70 0.77 0.67
0.85 0.70 0.82 0.72
0.8 I 0.67 0.79 0.72
0.71 0.61 0.81 0.68
0.69 0.59 0.79 0.68
0.62 0.59 0.73 0.64
0.56 0.52 0.62 0.60
0.58 0.51 0.62 0.61
0.50 0.47 0.58 0.53
0.56 0.54 0.66 0.62
0.75 0.90 0.94 I .03
0.69 0.81 0.84 0.91
0.72 0.84 0.89 1.04
0.73 0.77 0.86 0.97
0.72 0.77 0.88 0.99
0.72 0.77 0.91 0.99
0.72 0.87 0.88 0.85
0.67 0.79 0.83 0.79
0.63 0.76 0.76 0.73
0.63 0.71 0.75 0.74
0.64 0.72 0.76 0.71
0.68 0.78 0.8 I 0.80
0.57 0.61 0.57 0.37
0.62 0.65 0.63 0.42
0.80 0.79 0.78 0.56
0.82 0.76 0.?9 0.58
0.79 0.69 0.74 0.54
0.72 0.65 0.72 0.53
0.59 0.50 0.60 0.42
0.66 0.63 0.66 0.48
0.62 0.55 0.62 0.48
0.70 0.65 0.70 0.53
0.86 0.74 0.82 0.64
0.99 0.87 0.96 0.74
1.00 0.89 0.98 0.77
0.75 0.95 0.76
0.86 I.12 0.89
0.86 I .09 0.90
0.93 I.17 I .oo
0.89 I.17 I.10
0.93 I .20 I .02
0.71 0.96 0.83
0.64 0.87 0.75
0.59 0.82 0.69
0.50 0.71 0.62
0.56 0.79 0.72
0.64’ 0.87’ 0.79b
0.71 0.94 0.85
0.75b I .07b 0.97h
0.88 0.98 I .02 0.88
0.95 I .05 I.13 0.99
0.86 0.88 I .02 0.95
0.95 0.96 I.12 I .06
I .03 I.01 I.21 I.14
I .05 I .oo I.21 I .to
0.74 0.69 0.88 0.89
0.65 0.59 0.84 0.78
0.54 0.55 0.67 0.63
0.48 0.49 0.64 0.59
0.57 0.57 0.72 0.67
0.64’ 0.61’ 0.80’ 0.76
0.70 0.69 0.85 0.84
0.79’ 0.78’ 0.95’ 0.96’
351 371 382 5
0.9 I 0.94 0.85 0.73
0.97 0.94 0.9 I 0.80
I.01 I .03 0.99 0.90
I.10 I .05 I .04 0.98
-1.29 I.18 I.19 I.16
1.36 1.33 1.28 1.24
1.28 1.00 I.18 I.21
0.97 0.87 0.91 0.93
0.74 0.66 0.76 0.71
0.67 0.68 0.68 0.64
0.55 0.51 0.58 0.56
Denmark
35112 38213 5
0.70 0.80 0.63
0.73 0.89 0.67
0.77 0.93 0.73
0.75 0.89 0.74
0.90 I .06 0.89
0.97 I.13 0.97
0.89 I.01 0.90
0.63 0.76 0.65
0.56 0.70 0.59
0.52 0.65 0.57
France
351 371 382 5
0.58 0.62 0.59 0.41
0.69 0.74 0.68 0.46
0.63 0.67 0.68 0.47
0.66 0.70 0.71 0.50
0.80 0.80 0.81 0.59
0.89 0.83 0.89 0.74
0.91 0.85 0.89 0.69
0.68 0.63 0.73 0.55
0.58 0.52 0.63 0.46
W. Germany
351 371 382 5
0.91 0.85 0.90 0.64
0.90 0.83 0.92 0.63
0.95 0.88 0.99 0.69
I.01 0.89 1.05 0.74
I.15 1.00 I.21 0.88
1.23 1.07 I .30 I .02
I.12 0.94 I.21 0.94
0.81 0.68 0.90 0.70
Italy
351 371 382 5
0.59 0.61 0.60 0.40
0.64 0.69 0.67 0.44
0.61 0.C : 0.65 0.43
0.64 0.64 0.69 0.46
0.81 0.71 0.78 0.57
0.94 0.80 0.90 0.72
0.96 0.78 0.92 0.67
Netherlands
351 37 382 5
0.85 0.95 0.89 0.72
0.89 0.95 0.94 0.77
0.89 0.99 0.99 0.81
0.95 I.01 I .05 0.91
I .08 I.13 I.18 I .07
I.14 I .26 1.33 I .20
U.K.
35112 371 382 5
0.50 0.40 0.48 0.34
0.50 0.46 0.49 0.36
0.41 0.40 0.43 0.31
0.42 0.41 0.46 0.33
0.51 0.49 0.54 0.38
Australia
3511213 37 38 I/2/3 5
0.84 0.82 0.84 0.66
0.81 0.78 0.81 0.66
0.82 0.81 0.86 0.71
0.74 0.73 0.77 0.65
Canada
35112 37112 382 5
0.80 0.91 0.92 0.91
0.77 0.91 0.95 0.96
0.83 0.99 I .04 I.08
Japan (Annual averages
35112 371 382 5
0.60 0.60 0.56 0.33
0.58 0.62 0.56 0.34
35112 382 5
0.75 0.s7 0.71
35 371 382 5
0.78 0.90 0.91 0.77
Norway
( 3rd OrI Sweden (4thQr)
)
1987 Apr.
1986 Apr.
Belgium
(3rd Qr)
1985
Indices apply at October of each year unless otherwise stated. “International Standard Industrial Classifications: See footnote in Table 3. hFirst quarter. ‘Second quarter.
168 currencies from April t to October 1, 1987 but there was a further fall in the dollar value of about 10% in the last quarter of 1987. INTERNATIONAL COMPARISON ERECTED COSTS
OF
From Table 6 it will be seen that erected costs of plants, compared to those in the U.S.A., were higher in seven countries and lower in three. The main feature illustrated by the Table is the large increase in the relative costs in the year to July 1, 1987. This is due --.,ainly in most countries to the fall in the value of the U.S. dollar, but in the case of Norway the increase in the national index outweighed the’effect of currency changes.
creases approaching 10% per annum in the immediate future. The remaining five countries should continue at around 5% per annum increase although in the year to July 1, 1987, Denmark at 8.8% and Australia at 7.5% were considerably higher. Turning to the international comparison, the currency markets will continue in a state of flux until the U.S. dollar is stabilised. The average of the relative costs at July 1, 1987 shown in Table 6 is 1.03, and hence it could be argued that the dollar value in the first half of 1987 was at the right level relative to most other currencies. However in view of the further depreciation of the dollar in the last quarter of 1987 it is likely that, at January 1, 1988,relative costs in the other twelve countries will be at their highest at least since 1980/ 1, and for some, such as Australia and Japan, even earlier. REFERENCES
Previous trends would indicate that national indices of erected costs in Japan, West Germany, the Netherlands and Canada are unlikely to change appreciably in the next year or two. Belgium and the U.S.A. too are likely to remain fairly stable. At the other extreme Norway and Sweden look likely to have annual in-
Engineering Costs and Production Economics, 6( 3) ( 1982) 267-273. EngineeringCostsand Production Economics, 7( 1) ( 1982) 13-18. Engineering Costs and Production Economics, 8( 3) (1985) 137-144. Engineering Costs and Production Economics, 10( 4) (4 986) 267-270.
The latest indices in Table 1 indicate that the erected costs of plants were still increasing as at July 1, 1987 in most countries. Japan is the outstanding exception to the general rule with virtually the same index since 1983, but West Germany and the Netherlands have had very small increases in the same period, and Canada and the U.S.A. show increases of 1% to 2% in the five-year period. In the year to July 1, 1987, Norway with 17.3%, Denmark with 8.8%, Australia with 7.5% and Sweden with 7.0% have had the largest increases. In the international comparison, Table 6, the dominant factor is the effect of the U.S. dollar revaluation relative to other currencies in the year to July 1, 1987. Apart from the Australian dollar which fell by about 3%, the currencies of the other eleven countries rose by from 6% to 22% relative to the U.S. dollar.
157
The method used to compile the indices has been described in previous articles [l-3]. In brief, a pseudo total erected cost is arrived at by calculating costs of materials, comprising 10 tonne cement, 1 tonne reinforcing bar, 3 tonne steel sections and 6 tonne steel plate, at basic ex-works prices, and calculating total labour costs for 300 hours of mechanical engineering and 230 hours of construction labour. These hours are assumed to be at 100% performance and apply to Japan and the U.S.A. For other countries lower performances for construction labour are assumed, 50% for the U.K., 60% for France, Italy and Norway, 70% for Denmark and Sweden, 75% for West Germany, 80% for Belgium and the Netherlands, 85% for Australia and 90% for Canada, all wih a resultant increase in the number of hours. The total of
TABLE 1 indices of erected costs of plantsa as at January 1st, unless otherwise stated ( 1975 = 1.001
Belgium Denmark France W. Germany Italy Netherlands U .K. Australia Canada Japan Norway Sweden U.S.A.
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1986 July 1
1987
1987 July 1
1.09 1.02 1.13 1.03 1.19 1.09 1.30 1.15 1.20 1.11 1.10 1.05 1.11
1.16 1.06 1.25 1.07 1.43 1.14 1.45 1.33 1.33 1.26 1.22 1.16 1.18
1.27 1.16 1.34 1.11 1.67 1.22 1.61 1.46 1.46 1.39 1.35 1.24 1.27
1.29 1.27 1.46 1.14 1.92 1.18 1.76 1.57 1.56 1.50 1.45 1.37 1.39
1.40 1.38 1.59 1.21 2.27 1.24 2.04 1.71 1.76 1.58 1.53 1.49 1.53
1.50 1.54 1.82 1.29 2.67 1.31 2.35 1.93 1.95 1.70 1.69 1.67 1.68
1.64 1.64 2.05 1.38 3.15 1.42 2.56 2.15 ‘2.24 1.79 1.79 1.81 !.85
1.89 1.99 2.50 1.53 3.89 1.54 2.78 2.58
1.99 2.14 2.73 1.52 4.38 1.54 2.92 2.77
2.01 2.19 2.84 1.56 4.71 1.57 3.10 2.91
2.06 2.32 2.97 1.60 5.12 1.59 3.34 3.15
2.09 2.38 3.04 1.61 5.26 1.61 3.48 3.21
2.07 2.41 3.10 1.60 5.31 1.63 3.56 3.36 2.57 1.87 2.73 2.77 2.10
2.10 2.59 3.17 1.61 5.53 1.61 3.67 3.45 2.61 1.86 2.99 2.89 2.12
2.46 2.42 2.47 2.52 2.55 1.84 2.07 2.05 1.96
1.84 2.18 2.26 2.09
1.84 2.20 2.37 2.13
1.89 2.43 2.57 2.19
1.85 2.55 2.70 2.08
“For method used to calculate costs and indices see Eng. Costs Prod. Econ., 6 ( E982 ) 272 and, 7 ( 1982 ) 18.
Ql67-188X/88/$03.40
@ I988 Elscvicr Scicncc
I
F.Fr.
I
France
Netherlands
1 II IV Guilder
Lire
1
Italy 11 111 IV
DM
I II III IV
W. Germany
II III IV
D.Kr
B.Fr.
I II IV
II III IV
Denmark
Belgium
Locai currency
70 780 830
10,700 181,000 153,000 177,000
67 700 640 740
120 1,080 1,040 1,320
190 1,610 1,950
920 11,500 9,800 13,900
1974 (Prices per tonne)
Price indices for: I Ordinary Portland cement II Steel re-inforcing bar 111 Steel sections (heavy) IV Steel plate
TABLE 2
119 76 105
134 75 105 118
110 85 105 95
112 96 100 113
116 95 81
112 75 90 78
1975
126 73 105
152 83 128 127
110 80 109 93
131 99 113 113
117 87 76
130 68 102 71
1976
132 78 105
188 104 154 136
116 78 106 91
135 105 124 105
122 97 81
140 77 109 76
1977
136 73 81
210 117 174 146
118 77 I01 85
148 108 141 106
129 88 88
144 72 103 70
1978
138 74 d3
246 135 188 165
120 76 108 91
172 113 144 110
133 93 91
150 74 116 76
1979
394 143 214 203 169 91 89
150 90 85
145 83 114 108
239 141 171 127
203 118 108
186 85 128 86
1981
321 146 207 188
131 84 106 96
205 136 157 121
167 ii7 104
168 85 117 83
1980
187 86 119
115
515 157 304 308
177 81 132 122
293 148 214 203
232 149 154
250 117 163 129
1983
183 107
468 155 302 270
167 104 164 127
27’3 168 227 182
214 146 147
237 115 173 113
1982
196 78 ii9
549 178 320 311
177 86 133 122
299 167 219 203
229 156 152
252 iO5 160 123
1984
202 93 120
584 209 338 339
183 91 133 125
315 175 220 204
242 158 154
270 ii5 160 127
1985
207 99 120
616 215 359 350
184 96 125 126
319 201 230 212
240 158 160
272 122 153 133
First half
1986
634 166 340 345 210 92 123
625 186 353 350 208 99 122 208 99 123
187 96 ii0 117
185 95 120 122 186 96 115 117 634 156 346 350
334 206 221 219
239 158 172
280 121 148 128
First half
324 204 226 216
240 158 160
272 122 153 130
average
Annual
1987
328 206 221 219
240 158 160
272 122 153 126
Second half
-
Can.$
I[
Canada
N.Kr.
SW.Kf
I II III I II III IV I II III IV
Norway
Sweden
U.S.A. 30.40 215 230 230
125 1,225 1,480 1,715
!72 1,450 1,550
8,570 77,750 47,750 75,250
32.00 205 194 188
26.50 165 155 160
10.5 96.0 90.0 96.0
119 99 121 117
115 98 80 72
117 104 92
106 67 102 66
120 125 121 125
119 12i 123 As III
I40 811 135 132
132 91 127 126
132 lOd\ 9% 73
128 101 102
112 71 122 84
:40 126 135 141
137 !43 842
173 136 157 141
I41 92 135 137
149 108 83 66
141 104 107
115 67 133 90
153 115 141 155
154 15? 156
205 144 178 154
155 103 152 154
163 113 94 78
152 99 107
126 76 140 103
170 121 156 170
168 166 169
231 142 183 167
174 128 167 171
178 128 103 81
168 112 114
133 87 145 113
191 142 184 193
180 180 184
277 153 236 176
191 136 184 190
201 147 116 87
192 124 127
174 95 150 109
217 150 212 216
199 206 211
357 183 248 186
233 145 165
185 79 153 104
202 137 206 213
209 117 235 248
281 157 172 152
262 148 165
183 80 147 98
306 168 262 266
218 127 240 247
302 157 172 149
273 140 132
183 86 146 98
315 164 262 270
316 284 283
443 206 285 230
223 129 241 244
324 166 177 153
280 145 156
183 87 143 96
329 171 262 273
328 291 298
449 228 307 240
221 130 232 188
343 180 179 170
280 159 174
183 74 121 87
338 174 269 270
345 304 317
462 226 313 250
21s 131 231 190
,248 188 182 175
280 169 181
183 68 119 77
338 176 265 267
353 313 331
462 221 329 260
218 131 232 189
346 184 181 173
280 164 178
183 71 120 82
338 175 267 269
349 309 324
462 224 321 255
214 128 233 195
356 189 174 178
290 176 177
180 60 116 74
340 176 266 269
361 326 338
462 212 331 260
prices given for all other countries. See Vol. 5, PP. 245-24cJ.
208 128 230 231
231 260 1139 157 122 165 90 125
215 128 129
185 86 156 108
294 177 262 266
300 2?7 272
229 ’ 268 228 254 236 267 252 162 243 243
443 203 278 214
443 203 279 214
405 183 248 186
For price variations and material specifications, see Vol. 5, pp. 159-l 6 1 and 247-254. aJapanese steel prices are “market” prices and are not directly comparable with the basic (producer)
I J.S.$
Yen
I II III IV
Japana
II III IV
A.$
I II II! IV
Australia
Pound
I II III FV
U.K.
160 TABLE 3 Indicesof averagehourly earningsof adulr manualaworkers in selected industries Country
ISICb
1974
( I974= 100 )
1975
1976
1977
1978
1979
1980
Oct. Local currency
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Belgium
351 371 382 5
B.Fr.
157.25 171.89 133.94 130.07
118 I08 114 I16
131 122 125 132
147 132 137 146
152 137 142 150
165 157 156 167
183 172 169 180
France
351 371 382 5
F.Fr.
12.02 I1 71 11.04 10.08
II4 121 115 115
129 136 I35 137
145 I52 I53 I54
165 168 169 171
190 189 189 195
219 208 227 227
W. Germany
351 3ii 382 5
DM
!!.02 IO.05 9.89 10.00
106 105 I08 104
I15 113 114 110
124 120 I23 117
127 126 129 124
128 133 135 134
137 I41 146 144
Italy
351 371 382 5
Lire
I22 124 124 125
151 154 158 I58
190 183 188 187
232 205 210 218
191 255 262 279
351 313 321 327
Netherlands
351 37 382 5
GUlldtX
10.73 9.47 9.70
115 109 II2 114
123 120 120 123
134 130 130 135
141 139 137 148
148 147 143 162
155 I54 I53 170
U.K.
35112 371 382 5
Pound
1.17 1.16 1.10 I .04
I28 130 126 128
140 147 140 143
150 158 155 157
174 184 177 175
208 209 207 201
247 247 240 247
Australia’
35 t/2/3 37 3811213 5
A.%
3.79 3.73 3.42 3.55
I13 II2 I08 112
127 I28 123 I28
139 144 135 I41
150 I50 143 149
173 165 157 162
195 192 I75 181
Canada
35112 37112 382 5
Can.%
4.74 5.43 5.13 6.77
II3 116 II5 119
128 127 126 132
140 141 136 I48
150 152 147 I56
161 166 162 167
I86 183 176 I86
U.S.A.
351 371 382 5
U.S.$
I10 I10 I08 106
122 120 I15 113
133 I35 126 I18
142 149 136 127
I54 164 148 136
(3rdQr)
169 Id0 164 147 (3rdQr)
Denmark
35112 38212 5
D.Kr.
26.68 27.92 29.17
115 II9 114
129 131 129
143 542 144
I59 160 160
177 177 180
I89 191 195
Norway
35112 382 5
N.Kr.
22.12 23.39 26.39
113 118 116
137 140 136
153 I”5 151
165 168 165
‘
3 173 I71
185 198 189
(4thQr)
(41hQr)
169 167 I61 170 ( -Dec.
I85 179 175 190 ( -Dec.
35 SW&. 371 382 5 (12 months to Dec. I974 35112 371 382 5
Yen
1486 I542 1325 1255 IO.60
18.50 20.90 19.37 22.45
) I 115.8 1126.1 940.8 722.8
121 120 II8 I19 ( -Dec. I975 )
135 132 130 133 ( -Dec. I976
112 II8 II4 117
I21 I26 122 132
)
145 141 141 149 (-Dec.1977)
153 151 149 I58 ( -Dec. I978
132 138 133 148
139 143 139 160
‘For Japan, manual and non-manual workers, including holiday pay ( see: Vol. 5, pp. 75-77 ) . bIntemational Standard Industrial Classification: ‘From 1983 onwards, indices apply to May and November. 35 Manufacture of chemicals 353 Petroleum refineries 35 I Manufacture of industrial chemicals 37 Basic metal industries 35i Manufacture of other chemicals 371 Iron and steel basic industries
)
154 150 150 172
)
165 I62 I61 183
1
161
Oct.
Apr.
198 186 189 194
Oct.
Apr.
208 200 200 202
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
221 204 212 210
223 224 216 215
226 226 219 218
229 230 220 220
233 232 224 223
235 233 228 226
235 233 228 226
239 236 231 231
247 249 253 263
272 273 276 289
284 289 289 296
300 304 306 317
323 308 323 329
334 327 337 340
340 330 340 350
353 346 356 359
361 355 364 370
368 360 372 379
374 364 378 386
376 368 385 392
146 149 153 151
149 I56 I58 153
I53 I54 I59 I56
I57 I61 162 I61
I59 160 164 162
162 I61 !64 I65
164 163 169 166
166 I71 177 166
I69 I71 178 168
I71 173 179 172
178 180 187 I72
180 183 189 176
414 385 395 406
443 409 419 448
477 442 453 484
512 476 490 518
543 507 523 547
578 542 559 585
605 557 580 602
629 590 610 631
659 614 636 661
662 619 639 664
697R 636R 6641 690
727 672 702 709
183 I75 172 188
190 177 I74 187
193 I80 176 189
194 180 I76 189
I93 I81 178 I95
196 183 179 I95
198 184 180 197
I97 I85 I81 199
325 342 306 309
335 369 319 323
352 380 328 328
363 393 345 338
378 406 358 349
384R 4llR 373 363
40@ 411 379 374
421 455 390 388
258 265 264 260
270 276 275 272
271 276 264 295
285 283 274 302
295 298 284 313
297 300 285 315
299 317 303 321
310 324 313 330
I75 172 I71 190
I65 164 162 180 275 272 263 266
283 291 282 283
210 214 204 215
295 296 286 289
313 332 301 306
246 249 244 250
209 214 202 212
221 226 209 216
228 240 216 228
232 240 219 207
240 252 222 202
244 256 224 207
253 265 231 203
254 272 230 211
260 277 233 204
265 276 234 211
273 2GO 240 i39
280 287 243 219
I91 197 178 I58
I95 203 182 162
204 208 183 169
206 196 186 170
215 218 192 172
(IstQr)
( 3rd Qr 1
(IstQr)
(3rdQr)
225 222 I97 174 (3rdQr)
228 229 200 I75 (JstQr)
234 230 205 177 (3rd Qr)
233 238 207 176 (IstQr)
238 237 207 181
(3rdQr)
220 226 I95 I71 (1st Qr)
(3rd OrI
243 238 210 180 (1st Qrl
246 241 252
258 250 261
263 259 271
269 261 282
270 264 285
272 266 287
271 267 295
301 284 320
233 248 235 (4thQr)
241 252 238 (2ndQr)
255 269 255 (4thQr)
258 272 260 (2ndQr)
268 281 269 (4thQr)
281 287 281 (2ndQr)
312 308 306 (4th QrI
329 345 337
295 285 276 269 (-June)
298 289 282 283 (-Dec.)
313 302 294 300 (-June)
213 200 192 227
216 203’ 196 233
219 202 197 237
210 208 211 199 211 204 ( 4th Or 1 203 194 194 203 (-Dec.)
233 232 240 196 209 209
222 232 230
(ZndQr)
( 4th Qr 1
216 209 206 213 (-June)
213 209 210 208 ( -Dec.
1
221 232 228 (2ndQr) 231 224 220 219 (-June)
236 228 225 223 (-Dec.)
194 186 177 173 177 I87 179 182 I79 I75 184 I81 I76 I71 176 213 201 201 205 198 _ 372 Non-ferrous metal basic industries 38 I Manufacture of fabricated metal products, excl. machinery 382 Manufacture of m;?chinery excl. electrical 383 Manufacture of electrical machinery 5 Construction
256 246 240 240 ( -June)
261 252 247 240 (-Dec.)
275 269 259 249 ( -June)
277 269 263 256 ( -Dec.)
197 189 186 219
202 189 190 223
206 194 192 224
209 I98 194 225
(2nd OrI
351 371 382 5 351 371 382 5 351 371 382 5 351 37 382 5 35 112 371 382 5
W. Germany
Italy
Netherlands
U.K. Pound
Guilder
Lire
DM
F.Fr.
1.60 1.24 1.41 1.30
17.28 19.53 16.38 17.27
2927 3084 2677 2334
18.18 17.09 16.32 15.30
20.43 22.25 18.99 17.24
32.28 33.50 34.42
129 157 126 129
116 110 114 115
126 130 127 125
108 109 109 104
143
126 127 118 115
143 181 142 143
124 122 !22 124
166 161 162 159
120 118 116 112
138 136
144
131 128 128
116 119 114
133 126 128 136
153 194 157 155
137 133 134 139
196 192 194 190
130 126 126 120
160 162 156 154
145 140 143
149 137 140 15C
178 231 180 172
143 141 141 150
240 2 14 220 233
133 131 133 128
188 182 172 172
163 157 159
155 145 148 155
214 265 214 200
150 151 145 163
303 264 272 282
136 139 140 139
209 205 193 195
180 174 179
169 166 160 172
254 312 252 246
158 156 135 172
365 324 333 334
145 149 152 151
242 239 232 227
192 190 196
187 180 173 187
France
D.Kr.
120 110 116 119
292 356 280 278
164 164 162 182
435 402 414 420
154 157 159 157
276 270 260 265
217 212 212
205 198 194 203
1981
35 l/2 38213 5
267.3 287.1 227.7 255.0
1979
Denmark ( 3rd Quarter of each year )
B.Fr.
1978
351 371 382 5
1977
Belgium
Local currency
1976
1980
1975
ISICb
Country
1974
( 1974 =: 100 )
Indices of average hourly labour costs of adult manuala workers in selected industries
TABLE 4
313 389 305 295
175 175 174 192
509 468 482 508
162 164 166 164
321 319 301 301
245 238 246
217 216 208 216
1982
347 452 329 325
180 178 175 190
579 537 556 574
168 171 172 170
355 347 330 338
264 255 265
230 220 221 222
1983
376 501 352 345
195 183 179 191
645 590 617 632
174 174 177 174
384 365 348 356
283 274 285
235 226 228 231
1984
405 544 391 3?2
197 185 182 193
703 65 1 677 693
180 182 187 177
408 393 373 378
294 284 304
243 250 233 235
1985
421 558 413 392
200 186 183 198
706 656 680 697
181 184 188 181
416 398 380 385
301 290 311
245 251 237 238
Apr.
1986
439 558 419 404
202 188 184 200
742R 674R 706R 724
189 192 196 181
423’ 402 387 392
299 292 320
245 251 237 238
Oct.
468 626 437 425
202 191) 186 204
782 722 754 751
191 195 198 186
429 411 398 404
336 312 350
249 254 241 244
Apr.
1987
Can.$
Yen
N.Kr.
35112 371/2 382 5 35112 371 382 5 351/2 382 5 35 371 382 5 351 371 382 5
Japan ( Annual averages )
Norway ( 3rd Quarter of each year )
Sweden ( 4th Quarter of each year )
U.S.A. 7.51 7.61 6.82 8.95
26.09 30.31 27.5 1 30.76
30.97 32.75 35.10
1295 1306 1092 839
5.93 6.79 6.21 7.99
4.81 4.74 4.34 4.51
129 129 123 129 128 133 127 134 123 131 123 133 139 142 138 146 138 138 141 125 123 115 114
113 112 108 112 113 118 116 120 113 121 113 117 114 120 118 126 123 122 123 112 112 108 108
Indices apply at October of each year unless othetwise stated. aand bSee Table 3. ‘First Quarter. dSecond Quarter. ‘From 1983 onwards, indices apply to May and November.
U.S.$
SW&.
A.$
35 l/2/3 37 38 l/2/3 5
Australia’
136 13g 126 122
161 148 154 162
155 157 154
134 144 135 151
140 150 139 151
141 145 136 142
145 152 136 129
174 162 167 175
167 171 168
144 151 143 164
150 165 149 157
152 153 ’ 145 152
157 168 149 140
192 176 184 192
165 176 174
159 159 155 178
161 182 168 174
176 168 160 164
172 197 166 151
217 205 206 219
188 201 192
171 172 167 189
186 199 183 192
198 195 180 184
198 226 182 166
237 218 223 241
202 214 207
181 187 178 207
218 237 213 223
219 222 213 224
212 252 188 177
249 235 244 251
227 237 235
196 196 190 216
241 269 232 244
258 260 255 262
230 267 203 188
278 256 263 268
241 255 242
208 207 198 234
257 286 242 219
278 281 281 276
246 263 213 190
294 278 291 284
262 277 263
216 207 202 238
271 301 252 220
287 293 281 313
260 272 224 200
339 312 320 314
278 291 280
225 219 209 242
283 319 258 225
319 321 306 337
259 287 227 202
352d 324d 330d 334d
293’ 300” 296’
230 221 207 244
288 318 259 232
321 323 308 340
264 286 228 207
370 341 331 350
325 321 322
233 224 211 251
297 322 265 230
325 344 329 349
270 287 231 206
390d 35gd 346d 366d
348’ 364’ 360’
235 223 212 255
305 330 270 242
337 352 340 358
1.50 1.42 1.39 1.42
1987 Jan 2 Apr. 1 Jul. 1 Oct. 1 39.9 37.6 37.9 38.3
50.1 47.0 44.6 42.0
1.38 1.31 1.33 1.31
1.40 1.39 1.38 1.39
7.26 6.85 6.92 7.10
8.60 8.09 7.63
8.90
6.35 6.04 6.09 6.15
7.50 7.17 6.95 6.62
4.77 4.29 4.71 4.94 4.53 4.21 4.19 5.30 6.52 7.60 8.81 8.81 6.92
F.Fr.
France
1.92 1.82 1.83 1.85
2.45 2.33 2.18 2.02
2.62 2.44 2.51 2.34 2.03 1.82 1.85 2.21 2.40 2.54 2.88 2.88 2.18
DM.
W. Germany
1328 1295 1323 1333
1674 1588 1495 1396
636 649 803 880 857 824 876 127 337 514 1768 1866 1496
Lira
Italy
58 46 ,47 147
99 78 63 54
285 298 298 275 215 213 217 219 244 235 239 233 170
Yen
Japan
2.16 2.06 2.06 2.08
2.75 2.63 2.45 2.28
2.72 2.62 2.67 2.45 2.19 1.99 2.01 2.44 2.65 2.85 3.24 3.25 2.45
Guilder
Netherlands
7.33 6.84 6.70 6.74
7.55 7.27 7.45 7.18
5.56 5.18 4.98 5.30 5.25 5.01 4.96 5.66 6.41 7.31 8.24 8.46 7.36
Krone
Norway
6.73 6.34 6.39 6.46
1 7.57 7.35 7.08 6.90
4.47 4.11 4.38 4.38 4.56 4.26 4.24 5.04 6.22 7.65 8.33 8.47 7.13
Krbna
Sweden
‘Annual rates are averages of rates on the first trading day in each of the four quarters in the year and of the first quarter in the following year.
1.47 1.38 1.52 1.59
1986 Jan. 2 Apr. 1 Jul. 1 Oct. 1
6.13 5.68 6.07 5.94 5.48 5.16 5.60 6.97 8.24 9.10 10.4 10.4 8.10
1.01 0.987 1.05 1.16 1.17 1.17 1.19 1.24 1.23 1.30 1.36 1.39
0.981
39.5 36.5 39.0 35.8 31.9 28.7 29.1 36.4 44.5 50.4 58.3 58.2 44.7
0.760 0.802 0.905 0.87 1 0.887 0.863 0.869 0.977 1.11 1.15 1.42 1.49
0.694
1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
Krone
Can.$
B.Fr.
A.$
Denmark
Canada
Belgium
Australia
Currency exchange ratesa relative to U.S. Dollar
TABLE 5
0.670 0.623 0.619 0.620
0.68 1 0.646 0.692
0.692
Pound 0.4 1 0.448 0.545 0.579 0.527 0.472 0.426 0.49 1 0.572 0.663 0.763 0.77 1 0.676
U.K.
165 materials and labour costs give the erected costs and the resultant indices are based on January 1, 1975= 1.0. Previous articles, particularly one dealing with costs in the U.S.A. C4], have pointed up the possible variations in erected costs indices arising from differences between national and regional and local site costs. In the article on U.S.A. costs it was shown that variations for four selected regions ranged from 5% below to 20% above national averages. It was suggested too that it would be prudent to allow a margin of t 10%of the erected cost to cover local variations in rates of pay and construction productivity. This possibility of variatiocn;at specific sites relative to national averages should always be borne in mind. The increases in the indices of erected costs (Table 1) in the year to July 1, 1987 vary considerably from one country to another. Expressed as percentages they are as follows: Belgium Denmark France W. Germany Italy Netherlands U.K.
0.5 8.8 4,3 0.6 5.1 1.9 5.5
Australia Canada Japan Norway Sweden U.S.A.
7.5 2.4 0.5 17.3 7.0 1.9
The average percentage change is 4.9%. These changes are due largely to increased hourly labour costs (Table 4). All thirteen countries show increases, ranging from 2% to TABLE
20%, for mechanical engineering and construction, the two classifications used in compiling the indices. Materials prices (Table 2) on the other hand have been quite steady in the same period and most changes could be regarded as adjustments to bring prices into line with those of competitors. As Table 7 indicates there is a large degree of uniformity in prices for each of the four materials listed, except in the case of Italy. For Japan the indices quoted relate to “market” rather than basic, ex works, prices (see footnote to Table 2).
The relationship of the various currencies to the U.S. dollar in the first three quarters of 1987 are shown in Table 5. Using rates at April 1 to compare the first halves of 1986and 1987, all currencies listed have appreciated over the year relative to the U.S. dollar, except the Australian dollar. The percentage changes were as follows: Belgium Denmark France W. Germany Italy Netherlands
20.0 20.3 15.8 21.9 18.5 2 1.7
U.K. Australia Canada Japan Norway Sweden
8.5 -2.9 6.0 18.0 6.0 13.7
The average change is 15.5%. It will be seen there was a degree of stabilisation of the dollar against most of the other
6
Comparison
Belgium Denmark France W. Germany Italy Netherlands U.K. Australia Canada Japan Norway Sweden U.S.A.
of erected costs of plants with U.S.A. = I .O, as at January 1st unless otherwise stated 1975
1976
1977
1978
1979
I980
1981
1982
1983
1984
1985
1986
1986 July I
1987
1987 July I
1.07 1.06 0.85 1.02 0.86 1.04 0.77 0.92 0.92 0.58 I.16 1.24 -
I .oo 1.01 0.93 0.98 0.88 1.05 0.81 0.89 0.95 0.55 I.16 I.18 I.0
I.01 0.98 0.89 0.99 0.81 I .05 0.70 0.94 I .05 0.59 1.28 1.24 -
I.10 0.98 0.87 I .02 0.82 1.12 0.72 0.85 0.98 0.65 1.25 I.13
I.18 I.10 0.96 I.12 0.91 1.13 0.80 0.87 0.87 0.82 1.29 I.19
1.36 I.13 I .02 I .20 I.01 I.18 0.94 0.84 0.90 0.79 I.31 1.26
I.21 1.05 1.04 I.13 I.01 I.12 I .08 0.90 0.90 0.77 1.32 1.29
0.92 0.80 0.82 0.88 0.78 0.82 0.86 0.89 0.92 0.73 1.07 0.99
0.8 I 0.76 0.75 0.85 0.79 0.82 0.79 0.86 0.92 0.60 I .oo 0.90
0.72 0.72 0.68 0.76 0.74 0.73 0.68 0.80 0.86 0.62 0.92 0.76
0.60 0.62 0.58 0.64 0.65 0.61 0.59 0.76 0.8 I 0.58 0.82 0.70
0.68 0.7 I 0.67 0.73 0.72R 0.69 0.70 0.67 0.76 0.65 0.89 0.79
0.83R 0.87R 0.84 0.89 0.88 0.83 0.80 0.73 0.80 0.82 I.15 0.95
0.92 0.98 0.90 I.01 1.00 0.96 0.88 0.68 0.80 w.94 I.15 I .03 --
1.03 I.15 0.99 I.12 I.11 I.06 0.90 0.78 0.85 0.96 1.28 I.14
166 TABLE7 Comparisonofprices, withU.S.A.=l.O.for: IOrdinary Portlandcemenl IISteelre-inforcingbar 111 Steel sections (heavy) IV Sreelplate 1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987 isthaif
Isthalf
Zndhalf
Belgium
I ii iii IV
0.77 I.35 1.08 1.53
0.78 I.11 0.87 I.10
0.77 1.02 0.88 0.87
0.84 1.24 0.96 0.94
0.88 I.17 0.90 0.86
0.91 1.08 1.02 0.94
0.92 I.15 0.93 0.90
0.77 0.91 0.73 0.66
0.77 1.08 0.72 0.66
0.72 1.06 0.59 0.63
0.57 0.73 0.47 0.50
0.63 0.82 0.49 0.54
0.79 1.06 0.67 0.91
0.92 I.18 0.67 0.95
1.03 1.32 0.70 1.03
Denmark
I ii IV
1.02 1.22 1.38
1.07 1.26 1.03
0.92 I.18 0.84
0.91 I.32 0.85
0.95 I.16 0.88
0.93 1.05 0.87
1.05 I.15 0.82
0.90 0.93 0.62
0.77 1.03 0.65
0.82 1.05 0.64
0.59 0.85 0.49
0.65 0.88 0.52
0.80 1.07 0.92
0.91 1.19 0.93
1.00 1.32 1.07
France
I
0.83 1.05 0.94 1.20
0.86 I.13 0.87 1.29
0.84 1.16 0.85 1.09
0.77 I.16 0.83 0.89
0.83 1.25 0.92 0.87
0.93 1.05 0.92 0.88
I.01 I.19 0.92 0.87
0.88 0.98 0.70 0.65
0.80 I.01 0.68 0.69
0.73 0.84 0.54 0.62
0.59 0.73 0.44 0.52
0.64 0.77 0.47 0.54
0.79 I.08 0.67 0.90
0.91 I.19 0.65 1.00
1.00 I.31 0.70 1.05
ii iii IV
0.84 1.24 1.06 1.23
0.83 1.14 0.98 1.06
0.'4 I.13 0.94 0.94
0.77 I.17 0.93 0.91
0.83 1.20 0.90 0.87
0.84 1.06 0.98 0.93
0.82 1.08 0.86 0.87
0.72 0.90 0.69 0.73
0.74 1.10 0.82 0.73
0.73 C.88 0.62 0.63
0.59 0.73 0.47 0.53
0.63 0.79 0.54 0.57
0.79 1.03 0.65 0.94
0.93 I.17 0.68 0.98
1.03 1.31 0.70 1.04
I ii iii IV
0.55 1.32 1.04 1.21
0.61 0.98 0.89 1.19
0.51 0.95 0.83 0.96
0.53 1.09 0.86 0.87
0.56 1.12 0.88 0.85
0.64 1.08 0.91 0.90
0.68 1.03 0.86 0.87
0.61 0.78 0.61 0.65
0.59 0.76 0.65 0.67
0.57 0.75 0.57 0.63
0.48 0.62 0.48 0.53
0.49 0.73 0.50 0.57
0.62 0.88 0.65 0.90
0.74 0.71 0.71 1.01
0.79 0.83 0.74 1.04
I ii IV
0.85 1.33 1.33
0.88 1.06 1.24
0.83 1.09 I.13
0.88 1.26 1.13
0.92 I.16 0.86
0.92 1.06 0.88
0.90 I.20 0.81
0.79 0.98 0.62
0.76 1.14 0.68
0.72 0.93 0.61
0.61 0.66 0.52
0.64 0.80 0.55
0.83 1.03 0.88
0.97 I.20 1.02
1.08 1.25 1.09
I ii iii IV
0.70 1.05 0.92 0.98
0.78 I.11 0.98 1.05
0.72 1.22 0.89 0.85
0.75 1.20 0.89 0.81
0.84 1.17 0.89 0.86
1.00 I.13 I.17 0.91
1.30 1.41 1.23 0.96
I.21 1.22 1.07 0.74
I.10 1.23 0.83 0.68
0.95 I.17 0.70 0.59
0.74 0.90 0.58 0.49
0.78 1.03 0.65 0.54
0.92 I.15 0.78 0.82
0.95 I.13 0.83 0.86
1.00 I.16 0.87 0.88
I
1.25 I.11 0.97 1.00
I.14 1.23 0.90 0.96
I.13 1.50 0.94 0.98
1.05 1.45 0.86 0.88
I.08 1.42 0.86 0.88
1.02 1.23 0.84 0.84
1.06 1.35 0.90 0.90
1.14 1.47 0.89 0.88
1.15 1.56 0.80 0.82
I.12 1.64 0.70 0.68
1.06 I.41 0.67 0.67
0.90 I.21 0.59 0.60
0.93 1.23 0.63 0.80
0.93 1.20 0.63 0.79
1.06 I.41 0.70 0.87
ii iii IV
I.11 0.97 0.86 0.83
1.04 I.19 0.83 0.86
I.13 1.34 0.91 0.93
1.09 1.14 0.84 0.88
0.99 0.97 0.75 0.78
0.99 0.90 0.79 0.7e
1.02 0.92 0.83 0.79
I.10 0.95 0.84 0.78
1.20 1.06 0.78 0.76
I:25 1.11 0.76 0.71
I.15 0.88 0.69 0.68
I.15 0.93 0.68 0.68
I.16 0.92 0.70 0.84
I.19 0.93 0.70 0.83
1.25 0.98 0.72 0.84
Japan
I IV
0.99 0.77
0.84 0.75
0.81 0.83
0.84 0.92
I.06 I.14
1.02 1.04
1.19 0.98
1.18 0.91
1.03 0.73
1.05 0.73
0.96 0.70
0.98 0.74
1.30 1.24
1.52 I.41
1.58 1.37
Norway
I ii iii
1.02 I.21 I.21
1.07 1.37 0.99
I.11 1.50 1.08
1.07 1.43 I.01
1.05 1.22 0.90
1.09 1.17 0.92
I.15 1.24 0.94
1.07 1.12 0.75
0.99 1.19 0.76
0.97 I.16 0.65
0.81 0.85 0.43
0.84 0.89 0.51
0.97 1.11 0.68
0.97 I.19 0.72
I.11 1.33 0.74
Sweden
I
0.92 1.27 1.44 1.67
0.99 1.37 1.04 I.11
0.96 1.43 1.05 0.98
1.00 1.52 0.91 0.80
0.95 1.37 0.87 0.83
0.99 1.33 0.93 0.83
I.05 1.45 0.95 0.80
0.93 I.14 0.75 0.63
0.83 I.12 0.74 0.65
0.74 1.00 0.62 0.60
0.66 0.82 0.53 0.52
0.71 0.87 0.56 0.56
0.87 1.07 0.68 0.92
0.96 1.19 0.74 1.00
1.05 1.30 0.74 1.05
ii iii IV W.Germany
ilaiy
Netherlands
U.K.
Australia
I
ii iii iv Canada
I
ii iii IV
SeefootnoresinTable2.
TABLE
8
Comparison
of hourly labour costs, with U.S.A. = I .O ISH.?
1974
1975
1976
1977
1978
.979
I980
1981
I982
1983
I984
Ckt.
0.62 0.65 0.65 0.62
0.72 0.70 0.74 0.72
0.79 0.79 0.83 0.78
0.87 0.89 0.93 0.89
0.44 0.55 0.51
0.50 0.65 0.61
0.5gb 0.73b 0.69b
0.64 0.82 0.78
0.7gb 0.97b 0.95h
0.53 0.54 0.57 0.43
0.45 0.43 0.49 0.39
0.53 0.52 0.58 0.45
0.61 0.57 0.65 0.51
0.66 0.62 0.71 0.55
0.72 0.69 0.80 0.62
0.74 0.58 0.84 0.63
0.67 0.62 0.77 0.59
0.56 0.49 0.65 0.51
0.63 0.57 0.75 0.57
0.73 0.62 0.85 0.66
0.86 0.74 I .02 0.74
0.94 0.84 I.13 0.85
0.68 0.57 0.71 0.53
0.66 0.53 0.71 0.53
0.62 0.58 0.68 0.50
0.53 0.48 0.59 0.46
0.59 0.54 0.66 0.50
0.67 0.58 0.74 0.57
0.78R 7.691 ~.87R 0.65
0.87 0.79 0.99 0.73
I .06 I .04 1.22 I.1 I
0.69 0.67 0.77 0.86
0.69 0.64 0.80 0.76
0.61 0.65 0.71 0.68
0.53 0.32 0.59 0.57
0.58 0.59 0.65 0.62
0.67 0.64 0.74 0.72
0.77 0.74 0.85 0.82
0.84 0.82 0.99 0.93
0.64 0.56 0.65 0.45
0.75 0.62 0.75 0.57
0.58 0.17 0.58 0.45
0.53 0.43 0.57 0.41
0.48 0.43 0.50 0.37
0.40 0.39 0.42 0.33
0.47 0.46 0.51 0.38
0.52 0.48 0.55 0.41
0.51 0.46 0.55 0.41
0.59 0.57 0.63 0.48
0.78 0.73 0.78 0.69
0.8 I 0.70 0.77 0.67
0.85 0.70 0.82 0.72
0.8 I 0.67 0.79 0.72
0.71 0.61 0.81 0.68
0.69 0.59 0.79 0.68
0.62 0.59 0.73 0.64
0.56 0.52 0.62 0.60
0.58 0.51 0.62 0.61
0.50 0.47 0.58 0.53
0.56 0.54 0.66 0.62
0.75 0.90 0.94 I .03
0.69 0.81 0.84 0.91
0.72 0.84 0.89 1.04
0.73 0.77 0.86 0.97
0.72 0.77 0.88 0.99
0.72 0.77 0.91 0.99
0.72 0.87 0.88 0.85
0.67 0.79 0.83 0.79
0.63 0.76 0.76 0.73
0.63 0.71 0.75 0.74
0.64 0.72 0.76 0.71
0.68 0.78 0.8 I 0.80
0.57 0.61 0.57 0.37
0.62 0.65 0.63 0.42
0.80 0.79 0.78 0.56
0.82 0.76 0.?9 0.58
0.79 0.69 0.74 0.54
0.72 0.65 0.72 0.53
0.59 0.50 0.60 0.42
0.66 0.63 0.66 0.48
0.62 0.55 0.62 0.48
0.70 0.65 0.70 0.53
0.86 0.74 0.82 0.64
0.99 0.87 0.96 0.74
1.00 0.89 0.98 0.77
0.75 0.95 0.76
0.86 I.12 0.89
0.86 I .09 0.90
0.93 I.17 I .oo
0.89 I.17 I.10
0.93 I .20 I .02
0.71 0.96 0.83
0.64 0.87 0.75
0.59 0.82 0.69
0.50 0.71 0.62
0.56 0.79 0.72
0.64’ 0.87’ 0.79b
0.71 0.94 0.85
0.75b I .07b 0.97h
0.88 0.98 I .02 0.88
0.95 I .05 I.13 0.99
0.86 0.88 I .02 0.95
0.95 0.96 I.12 I .06
I .03 I.01 I.21 I.14
I .05 I .oo I.21 I .to
0.74 0.69 0.88 0.89
0.65 0.59 0.84 0.78
0.54 0.55 0.67 0.63
0.48 0.49 0.64 0.59
0.57 0.57 0.72 0.67
0.64’ 0.61’ 0.80’ 0.76
0.70 0.69 0.85 0.84
0.79’ 0.78’ 0.95’ 0.96’
351 371 382 5
0.9 I 0.94 0.85 0.73
0.97 0.94 0.9 I 0.80
I.01 I .03 0.99 0.90
I.10 I .05 I .04 0.98
-1.29 I.18 I.19 I.16
1.36 1.33 1.28 1.24
1.28 1.00 I.18 I.21
0.97 0.87 0.91 0.93
0.74 0.66 0.76 0.71
0.67 0.68 0.68 0.64
0.55 0.51 0.58 0.56
Denmark
35112 38213 5
0.70 0.80 0.63
0.73 0.89 0.67
0.77 0.93 0.73
0.75 0.89 0.74
0.90 I .06 0.89
0.97 I.13 0.97
0.89 I.01 0.90
0.63 0.76 0.65
0.56 0.70 0.59
0.52 0.65 0.57
France
351 371 382 5
0.58 0.62 0.59 0.41
0.69 0.74 0.68 0.46
0.63 0.67 0.68 0.47
0.66 0.70 0.71 0.50
0.80 0.80 0.81 0.59
0.89 0.83 0.89 0.74
0.91 0.85 0.89 0.69
0.68 0.63 0.73 0.55
0.58 0.52 0.63 0.46
W. Germany
351 371 382 5
0.91 0.85 0.90 0.64
0.90 0.83 0.92 0.63
0.95 0.88 0.99 0.69
I.01 0.89 1.05 0.74
I.15 1.00 I.21 0.88
1.23 1.07 I .30 I .02
I.12 0.94 I.21 0.94
0.81 0.68 0.90 0.70
Italy
351 371 382 5
0.59 0.61 0.60 0.40
0.64 0.69 0.67 0.44
0.61 0.C : 0.65 0.43
0.64 0.64 0.69 0.46
0.81 0.71 0.78 0.57
0.94 0.80 0.90 0.72
0.96 0.78 0.92 0.67
Netherlands
351 37 382 5
0.85 0.95 0.89 0.72
0.89 0.95 0.94 0.77
0.89 0.99 0.99 0.81
0.95 I.01 I .05 0.91
I .08 I.13 I.18 I .07
I.14 I .26 1.33 I .20
U.K.
35112 371 382 5
0.50 0.40 0.48 0.34
0.50 0.46 0.49 0.36
0.41 0.40 0.43 0.31
0.42 0.41 0.46 0.33
0.51 0.49 0.54 0.38
Australia
3511213 37 38 I/2/3 5
0.84 0.82 0.84 0.66
0.81 0.78 0.81 0.66
0.82 0.81 0.86 0.71
0.74 0.73 0.77 0.65
Canada
35112 37112 382 5
0.80 0.91 0.92 0.91
0.77 0.91 0.95 0.96
0.83 0.99 I .04 I.08
Japan (Annual averages
35112 371 382 5
0.60 0.60 0.56 0.33
0.58 0.62 0.56 0.34
35112 382 5
0.75 0.s7 0.71
35 371 382 5
0.78 0.90 0.91 0.77
Norway
( 3rd OrI Sweden (4thQr)
)
1987 Apr.
1986 Apr.
Belgium
(3rd Qr)
1985
Indices apply at October of each year unless otherwise stated. “International Standard Industrial Classifications: See footnote in Table 3. hFirst quarter. ‘Second quarter.
168 currencies from April t to October 1, 1987 but there was a further fall in the dollar value of about 10% in the last quarter of 1987. INTERNATIONAL COMPARISON ERECTED COSTS
OF
From Table 6 it will be seen that erected costs of plants, compared to those in the U.S.A., were higher in seven countries and lower in three. The main feature illustrated by the Table is the large increase in the relative costs in the year to July 1, 1987. This is due --.,ainly in most countries to the fall in the value of the U.S. dollar, but in the case of Norway the increase in the national index outweighed the’effect of currency changes.
creases approaching 10% per annum in the immediate future. The remaining five countries should continue at around 5% per annum increase although in the year to July 1, 1987, Denmark at 8.8% and Australia at 7.5% were considerably higher. Turning to the international comparison, the currency markets will continue in a state of flux until the U.S. dollar is stabilised. The average of the relative costs at July 1, 1987 shown in Table 6 is 1.03, and hence it could be argued that the dollar value in the first half of 1987 was at the right level relative to most other currencies. However in view of the further depreciation of the dollar in the last quarter of 1987 it is likely that, at January 1, 1988,relative costs in the other twelve countries will be at their highest at least since 1980/ 1, and for some, such as Australia and Japan, even earlier. REFERENCES
Previous trends would indicate that national indices of erected costs in Japan, West Germany, the Netherlands and Canada are unlikely to change appreciably in the next year or two. Belgium and the U.S.A. too are likely to remain fairly stable. At the other extreme Norway and Sweden look likely to have annual in-
Engineering Costs and Production Economics, 6( 3) ( 1982) 267-273. EngineeringCostsand Production Economics, 7( 1) ( 1982) 13-18. Engineering Costs and Production Economics, 8( 3) (1985) 137-144. Engineering Costs and Production Economics, 10( 4) (4 986) 267-270.