cost and price indices
TRANSCRIPT
Engineering Costs and Production Economics, I (1983) 115-106 Elsevier Science Publishers B.V., Amsterdam - Printed in The Netherlands
175
COST AND PRICE INDICES
Norman Boyd
Average hourly earnings and hourly labour costs in the four selected industries in the thirteen countries listed in Tables 1 and 2 continued their upward months from 1981 to country the increases in for the four industries and could be averaged as
trend in the twelve 1982. Within each hourly labour costs were fairly uniform follows: %age
4 6 7 8
10 11 13 14 15 18
German Fed. Rep. Japan and U.S.A.. Belgium and Sweden Netherlands and U.K. Denmark Canada Norway Australia France Italy A comparison of hourly labour costs rela-
tive to those in the U.S.A. in the four in- dustries is given in Table 3, and it can be seen that all countries, except Canada and Australia, have experienced a considerable reduction in costs vis-a-vis the U.S.A. since 1979. These reductions result, of course, mainly from the increasing strength of the U.S. dollar relative to other countries’ cur- rencies over the last two to three years as shown in Table 4. Within the European Eco- nomic Community, the U.K. had the lowest hourly labour costs in 1982, followed by France and Italy. Belgium, West Germany and the Netherlands were at the top end of the scale and their hourly costs were generally similar to those of Norway and Sweden. With the Canadian and U.S. dollars closely tied,
and the Australian dollar only slightly less SO, their hourly labour costs, vis-a-vis the U.S.A.‘s, have remained fairly constant. For Japan, favourable movements in the yen/ dollar exchange rates, coupled with a lower rate of increase in hourly costs, have enabled that country to further improve its position relative to the other twelve listed. In 1982 Japan’s hourly labour costs were only slightly higher than those of the U.K. and this, coupled with their high productivity in the four industries, means that their unit labour costs are well below those of many of their competitors.
For materials, “ex works” prices of cement and the three steel products remained fairly steady throughout 1982 as indicated by the indices for the two halves of the year (Table 5). However, all showed an increase over 198 1 with the exception of steel re- inforcing bar in the U.S.A. The drop in the price of this item took it below the prices in all other countries except Italy (see Table 6). For steel sections and plate, the percentage increases from 1981 to 1982 were all in double figures except for Canada and, for plate only in the U.S.A., where they were about 8%. All EF.C countries, with the pos- sible exception ot’ the U.K., had very con- siderable price inLreases of around 40% for steel sections and 30% for steel plate. The U.K.‘s increases were 13% and 15% respective- ly but despite this, its prices for sections are still higher than those of its Common Market partners.
Increases in cement prices, “ex works”, were in the 8-20% range in most countries
0167-188X/83/$03,00 0 1983 Elsevier Science Publishers B.V.
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6 16
1 17
4 19
2 21
7 23
7 24
9 30
.31
6.83
12
3 13
8 14
8 16
2 17
6 20
5 21
8 23
5 27
.51
6.20
12
2 13
8 15
4 16
7 18
4 20
6 22
3 24
4 30
.76
6.93
12
3 14
1 16
2 17
5 19
2 21
9 24
1 25
1 7.
51
112
125
136
145
157
172
198
212
7.61
11
2 12
3 13
8 15
2 16
8 18
4 20
2 21
6 6.
82
108
115
126
136
149
166
182
188
8.95
10
”;
114
122
129
140
151
166
177
Indi
ces
appl
y at
Oct
ober
of
each
yea
r u
ule
ss o
ther
wis
e st
ated
. a
and
b S
ee T
able
1.
TABLE3
Cgm D of hourly hbour ccats,with U.S.A. = 1.0
lSICa 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
Rdgium
nmaxk
an
d. Rep.
U.K.
AEt%tG%lia
351 0X7 0.55 0.67 0.84 0.91 0.97 1.01 1.10 1.29 1.36 1.28 0.97 0.74 371 6.54 0.62 0.71 0.83 0.96 0.94 1.03 1.05 1.18 1.33 1.28 0.96 0.77 382 W.7 0.54 0.62 0.81 0.85 0.91 0.99 1.04 1.19 1.28 l-18 0.91 0.76
5 6.96 0.40 0.47 0.64 0.73 0.80 0.90 0.98 1.16 1.24 1.21 0.93 0.71 351/2 6.4'; 0.50 0.51 0.68 0.76 0.73 0.77 0.75 0.90 0.97 0.89 0.63 0.56 38213 4r4-G 0.51 0.59 0.79 0.80 0.89 0.93 0.89 1.06 1.13 1.01 0.76 0.70
5 6.4': 0.46 0.47 0.62 0.63 0.67 0.73 0.74 0.89 0.97 0.90 0.65 0.59 351 0.35 0.40 0144 0.55 0.58 0.69 0.63 0.66 0.80 0.89 0.91 0.68 0.58 371 0.3? 0.41 0.48 0.54 0.62 0.74 0.67 0.70 0.80 0.83 0.90 0.69 0.61 382 O& 0.43 0.47 0.59 0.59 0.68 0.68 0.71 0.81 0.89 0.89 0.73 0.63
5 0.26 0.26 0.32 0.40 0.41 0.46 0.47 0.50 0.59 0.74 9.69 0.55 0.46 351 0.60 0.67 0.67 0.95 0.91 0.90 0.95 1.01 1.15 1.23 1.12 0.81 0.74 371 0.59 0.63 0.68 0.86 0.85 0.83 0.88 0.89 1.00 1.07 1.00 0.74 0.68 382 0.57 0.67 0.70 1.00 0.90 0.92 0.99 1.05 1.21 1.30 1.21 0.90 0.84
5 O-41 0.47 0.50 0.69 0.64 0.63 0.69 0.74 0.88 1.02 0.94 0.70 0.63 351 0.42 0.48 0.51 0.56 0.59 0.64 0.61 0.64 0.81 0.94 0.96 0.68 0.66 371 0.48 0.53 0.56 0.55 0.61 0.69 0.63 0.64 0.71 0.80 0.83 0.63 0.62 382 0.44 0.47 0.51 0.58 0.60 0.67 0.65 0.69 0.78 0.90 0.92 0.71 0.71
5 B.28 0.29 0.31 0.35 0.40 0.44 0.43 0.46 0.57 0.72 0.67 0.53 0.53 351 3.@ 0.55 0.61 0.85 0.85 93.89 0.89 0.95 1.08 1.14 1.06 0.69 0.69 37 0.96 0.64 0.69 0.86 0.95 0.95 0.99 1.01 1.13 1.26 1.18 0.74 0.79
382 0.53 0.61 0.64 0.88 0.89 0.94 0.99 1.05 1.18 1.33 1.22 0.77 0.80 5 0.38 0.46 0.51 0.70 0.72 0.77 0.81 0.91 1.07 1.20 1.11 CL85 0.76
351i2 0.38 0.42 0.43 0.45 0.50 0.50 0.41 0.42 0.51 0.64 0.75 0.58 0.53 371 3.38 0.40 0.43 0.36 0.40 0.46 0.40 0.41 0.49 0.56 0.66 0.52 0.50 382 0.38 0.41 0.44 0.47 0.48 0.49 0.43 0.46 0.54 0.65 0.75 0.58 0.57
5 0.25 0.27 0.30 0.31 0.34 0.36 0.31 0.33 0.38 0.45 0.57 0.45 0.41 35 i/2/3 0.47 0.53 0.57 0.77 0.84 0.81 0.82 0.74 0.78 0.81 0.85 0.81 0.71 3-1 0.50 0.55 OS8 0.71 0.82 0.78 0.81 0.73 0.73 0.70 0.74 0.74 0.68
38 l/2/3 0.50 0.58 0.59 0.79 0.84 0.81 0.86 0.77 0.78 'J.77 0.82 0.79 0.81 5 0.40 0.44 0.43 0.59 0.66 0.66 0.71 0.65 0.69 0.67 0.72 0.72 0.68
351i2 0.72 0.74 0.76 0.73 0.80 0.77 0.83 0.75 0.69 0.72 0.73 0.72 0.72 371D 0.87 O.S8 0.92 0.82 0.91 0.91 0.99 0.90 0.81 0.84 0.82 0.85 0.90 382 0.84 0.86 0.71 O-89 0.92 0.95 1.04 0.94 0.84 0.89 0.86 0.88 0.91
5 0.74 0.75 0.80 0.80 0.91 0.96 1.08 1.03 0.91 1.04 0.97 0.99 0.99 351/2 0.28 0.32 0.47 0.51 0.60 0.58 0.57 0.62 0.80 0.82 0.79 0.72 0.59 371 0.32 0.35 O-50 0.49 0.60 0.62 0.61 0.65 0.79 0.76 0.74 0.72 0.58 382 0.27 0.30 0.37 0.50 0.56 0.56 0.57 0.63 0.78 0.79 0.74 0.72 0.60
5 0.17 0.18 0.23 0.28 0.33 0.34 0.37 0.42 0.56 0.58 0.54 0.53 0.42 351/2 0.46 0.49 055 0.66 0.75 0.75 0.86 0.86 0.93 0.89 0.93 0.71 0.64 382 0.55 0.6i 0.64 0.81 0.87 0.95 1.12 1.09 1.17 1.17 1.20 Cl.96 0.87
5 0.44 0.4;!1 0.52 0.64 0.71 0.76 0.89 0.90 1.00 1.10 1.02 0.83 0.75 35 055 0.58 0.66 0.77 0.78 0.88 0.95 0.86 0.95 1.03 1.05 0.74 0.65
371 0.67 0.72 0.79 0.83 0.90 0.98 1.05 0.88 0.96 1.01 1.07 0.76 0.69 382 0.63 0.73 0.78 0.94 0.91 1.02 1.13 1.02 1.52 1.21 1.21 0,88 0.84
5 1.57 0.59 0.65 0.77 O-77 0.88 0.99 0.95 1.06 1.14 1.20 0.89 0.78
Inhtriaicla&fi~rions: See footnote to Table 1
TA
BL
E 4
Cu
rren
cy e
xch
ange
rat
es re
lati
ve to
U.S
. dol
lar.
1980
19
81
1982
Fir
st
Sec
ond
An
nu
al
Apr
. 1
Fir
st
Oct
. 1
Sec
ond
An
nu
al
Apr
. 1
Fir
st
Oct
. 1
Sec
ond
An
nu
al
hal
f h
alf
aver
age
hal
f h
alf
aver
age
hal
f h
alf
aver
age
__I_
B
elgi
um
B
.Fr.
28
.2
29.7
29
.1
34.5
35
.3
38.1
38
.5
36.4
45
.2
43.5
48
.95
46.4
6 44
.54
Den
mar
k
D.K
r.
5.45
5.
70
5.60
6.
62
6.75
7.
31
7.39
6.
97
8.22
8.
02
8.83
8.
56
8.24
F
ratI
Ce
F.F
r.
4.07
4.
28
4.19
4.
96
5.09
5.
57
5.66
5.
30
6.25
6.
26
7.13
6.
89
6.52
W
. Ger
man
y D
M
1.83
1.
85
1.85
2.
10
2.16
2.
32
2.32
2.
21
2.41
2.
37
2.52
2.
45
2.40
L
mlY
L
ire
862
879
876
1048
10
60
1258
12
17
1127
13
21
1302
14
19
1390
13
37
Net
her
lan
ds
Gu
ilde
r 1.
99
2.01
2.
02
2.33
2.
39
2.58
2.
57
2.44
2.
67
2.62
2.
77
2.70
2.
65
U.K
. P
oun
d 0.
431
0.42
1 0.
426
0.44
7 0.
464
0.54
6 0.
530
0.49
1 0.
560
0.55
2 0.
589
0.59
4 0.
572
Au
stra
lia
A.$
0.
871
0.85
5 0.
863
0.86
0 0.
861
0.87
6 0.
879
0.86
9 0.
952
0.93
9 1.
053
1.01
6 0.
977
Can
ada
Can
.$
1.16
1.
17
1.17
1.
18
1.19
1.
21
1.20
1.
19
1.23
1.
24
1.24
1.
26
1.24
Ja
pan
Y
en
224
210
217
212
214
233
227
219
246
240
269
251
244
Nor
way
N
.Kr.
4.
91
4.97
4.
96
5.38
5.
54
5.90
5.
91
5.66
6.
10
6.04
6.
96
6.73
6.
41
Sw
eden
S
w.K
r.
4.26
4.
24
4.25
4.
59
4.70
5.
60
5.41
5.
04
5.92
5.
85
6.27
6.
55
6.22
For
ear
lier
yea
rs s
ee V
ol.
5 pp
. 78
an
d 16
1,
and
Vol
. 7,
p.
105.
_*--
w
P
v
1974
(P
rice
a p
ew to
nn
e)
197s
19
76
1977
19
78
1979
19
80
1981
19
82
Loc
al
Eau
ival
sn;
____
1^1_
_-
Flts
t Sw
ond
Ftit
S
econ
d
An
nu
al
Firs
t S
econ
d
An
nw
? cu
rren
cy
U.S
. $
hal
f h
alf
hal
f h
alf
aver
age
hal
f h
alf
aver
age+
-p
,
Den
mar
k
Frol
nee
urn
1
lwr.
92
0 a3
.29
112
130
140
144
iSO
X
I 11
,SO
O
291.
1 7s
68
77
72
74
I1
1 9,
800
248.
1 90
10
2 10
9 10
3 11
6 IV
13
,900
35
1.9
78
71
76
70
76
I II
IV
I II
III
IV
Ger
man
l%
d.R
ap.
I II
III
IV
F.Fr
. 12
0 1,
080
1,04
0 1,
320
DM
67
70
0 64
0 74
0
25.5
7 11
0 11
0 11
6 11
8 12
0 12
9 13
3 13
1 26
7.2
85
80
78
77
76
87
80
84
244.
3 10
s 10
9 10
6 10
1 10
8 10
6 10
6 10
6 28
2.4
9s
93
91
85
91
94
98
96
Ital
y I
l&c
10,7
00
16.8
2 13
4 15
2 18
8 21
0 24
6 29
5 34
6 32
1 II
18
1,00
0 28
4.6
7s
83
104
117
135
149
143
146
III
153,
000
240.
6 10
5 12
8 15
4 17
4 18
8 20
4 20
9 20
7 IV
17
7,00
0 27
8.3
118
127
136
146
165
184
192
188
Net
her
lan
ds
I II
IV
Gu
ild
er
70
25.7
4 11
9 12
6 13
2 13
6 13
8 14
8 15
2 15
0 78
0 28
6.8
76
73
78
73
74
89
90
90
830
305.
1 10
s 10
5 10
5 81
83
85
85
85
U.K
. I II
II
I IV
Poun
d I’
OJ
24.7
6 14
0 17
3 20
5 23
1 27
7 34
6 36
9 35
7 96
.0
226.
4 11
1 13
6 14
4 14
2 15
3 18
3 18
3 18
3 90
.0
212.
3 13
s 15
7 17
8 18
3 23
6 24
8 24
8 24
8 96
.0
226.
4 13
2 14
1 15
4 16
7 17
6 18
6 18
6 18
6
88
1.16
83
D.K
r,
190
31.0
11
6 11
7 12
2 12
9 13
3 14
9 1,
610
262.
6 9s
87
97
88
93
11
7 1,
950
318.
1 81
76
81
88
91
10
4
25.1
6 11
2 13
1 13
s 14
8 17
2 19
s 21
5 20
5 22
6.4
96
99
10s
108
113
133
137
136
218.
0 10
0 11
3 12
4 14
1 14
4 15
7 15
8 15
7 27
6.7
113
113
105
106
110
121
121
121
33
118 83
18s
ii7
104
168 85
11
7 83
157
111
104
84
120 83
194
117
104
231
139
158
121
143 80
106 98
380
143
209
192
168 91
85
397
183
248
186
86
13s 88
213
120
112
247
143
183
133
147 86
122
117
186 85
128 86
203
118
108
239
141
171
127
145 83
11
4 10
8
113
165
106
208R
14
3 14
2
272
168
218
178
167
104
164
127
407
394
460
143
143
155
220
214
295
215
203
250
170
169
181
91
91
107
Y2
89
115
412
405
443
183
183
203
248
248
279
186
186
214
113
182
120
237
11s
173
113
212
p
210
p
149
146
151
147
274%
27
3 16
8 16
8 23
6 22
7 18
6 18
2
167
167
104
104
164
164
127
127
47s
468
15s
15s
308
302
290
270
184
107
114
443
203
279
214
183
107
115
443
203
279
214
TA
BL
E 5
(co
nth
ed)
Pri
cei in
dic
0s fo
r: I
Ord
inar
y Por
tlan
d ce
men
t II
St
eel
re&
forc
ing
bar
III
Ste
el se
ctio
ns (
heav
y)
W s
teel
pla
te
1974
(P
rice
s per
tonn
e)
19’7
5 19
76
1977
19
78
1979
19
80
1981
19
82
Loc
al
Equ
ival
ent
Fir
st
Seco
nd
Ann
ual
Fir
st
Seco
nd
Ann
ual
Fir
st
Seco
nd
Ann
ual
curr
ency
U
.S.
$ ha
lf
half
av
erag
e ha
lf
half
av
erag
e ha
lf
ha!f
av
erag
e
Can
ada
Japa
n a
Nor
way
Swed
en
Aus
tral
ia
I A
.$
26.5
0 38
.19
119
II
165
237.
80
121
III
155
223.
30
123
IV
160
230.
50
As
III
137
154
168
180
194
204
199
218
240
229
258
278
268
143
157
166
180
197
215
206
218
238
228
249
260
254
142
156
169
184
203
219
211
230
242
236
261
273
267
I II
III
IV
I II
III
IV
Can
. $
32.0
0 32
.62
120
140
153
170
191
217
218
217
250
254
252
295
294
294
205
209.
00
125
126
115
121
142
149
150
150
159
165
162
177
176
177
194
197.
80
121
135
141
156
184
205
218
212
232
255
243
262
262
262
188
191.
60
125
141
155
170
193
212
220
216
234
252
243
265
266
266
Yen
8,
570
30.0
7 10
6 11
2 11
5 12
6 13
3 77
,750
27
2.80
67
71
67
76
87
67
,750
23
7.70
10
2 12
2 13
3 14
0 14
5 75
,250
26
4.00
66
84
90
10
3 11
1
I N
.Kr.
17
2 30
.94
117
128
141
152
168
II
1,45
0 26
0.80
10
4 10
1 10
4 99
11
2 II
I 1,
550
278.
80
92
102
107
107
114
I II
III
IV
sw.K
.r.
125
1,22
5 1,
489
1,71
5
U.S
. $
30.4
0 21
5 23
0 23
0
27.9
6 11
5 13
2 14
9 16
3 17
8 19
5 20
6 20
1 32
5 23
6 23
1 25
6 26
4 26
0 27
4.00
98
10
0 10
8 11
3 12
8 14
8 14
6 14
7 13
9 13
8 13
9 15
8 15
5 15
7 33
1.10
80
91
83
94
10
3 11
4 11
7 11
6 11
7 12
6 12
2 16
0 16
9 16
5 38
3.70
72
73
66
78
81
86
87
87
89
92
90
12
2 12
7 12
5
U.S
.A.
I II
III
IV
119
131
141
155
174
190
191
191
200
203
202
209
207
208
99
91
92
103
128
138
135
136
138
136
137
130
126
128
121
127
135
152
167
181
188
184
200
212
206
222
238
230
117
126
137
154
171
185
195
190
209
218
213
225
237
231
91
98
149
151
110
109
124
124
125
129
174 95
15
0 10
9
192
124
127
87
85
156
156
109
106
124
132
129
129
185 86
15
6 10
8
215
128
129
79
155
105
79
150
103
142
148
165
165
185
79
153
104
233
145
165
For
pri
ce v
aria
tion
s and
mat
eria
l spe
ci.G
cati
ons,
see
Vol
. 5
pp.
159-
161
and
247-
254.
a
Japa
nese
stee
l pri
ces a
re “
mar
ket”
pri
cef
and
are
t\ot
dir
ectl
y co
mpa
rabl
e w
ith
the
basi
c (p
rodu
cer)
pri
ces g
iven
for
all
othe
r co
untr
ies.
See
Vol
. 5,
pp.
245
-246
.
184
’ of prrcer. with U.S.A. = 1.0. for: mry Psrcland cement
II Seccl re-inform bar
1970 1971 19;iZ 1973 1974 1975 1976 :977 1978 1979 1980 1981 I982
1 11 111 JV
J II JW
I II 111 IV
J 11 111 1V
1 11 111 IV
1 11 198
1 11 JlJ IV
1 11 111 iv
1 .1 111 IV
J SW
1 SJ 111
J 11 JlI IV
0.64 062 0.7cr 0.79 0.77 0.78 0.77 0.84 0.88 0.91 0.92 0.77 0.77 1.17 0.95 0.92 1.49 1.35 1.11 1.02 1.24 i.17 1.08 1.15 0.91 1.08 1.12 0.80 0.91 1.12 1 08 0.87 0.88 0.96 0.90 1.02 0.93 0.73 0.72 1.07 0.90 0.95 1 1‘). 1.53 1.10 0.87 0.94 0.86 0.94 0.90 0.66 0.66
0.72 0.70 ct.78 0.9: 1.02 1.07 0.92 0.91 0.95 0.93 1 .os 0.90 0.77 BAi 1.22 1.26 1.18 1.32 1.16 1.05 1.15 0.93 I .03 s.12 1.38 1.03 0.84 0.85 0.88 0.87 0.82 0.62 0.65
0.7! 0.71 0.76 tt.86 0.83 0.86 0.84 0.77 0.83 0.93 1.01 0.88 0.80 99 0.92 1 .I)5 1.33 I -05 1.13 1.16 1.16 1.25 1.05 1.19 0.98 1.01 .82 0.78 0.83 1 d2 0.94 0.87 0.85 0.83 0.92 0.92 0.92 0.70 0.68
0.90 0.89 0.95 J.f2 1.20 1.29 1.09 0.89 0.87 0.88 0.87 0.65 0.69
0.66 0.69 0.72 0.82 0.84 0.83 0.74 0.77 0.83 0.84 0.82 0.72 0.74 1.10 1.03 1.16 1.38 1.24 1.14 1.13 1.17 1.20 1.06 1.08 0.90 1.10 Q.87 0.86 0.93 1.13 1.06 0.98 0.94 0.93 0.90 0.98 0.86 0.69 0.82 8.86 6.96 1.01 1.23 1.23 1.06 0.94 0.91 0.87 0.93 0.87 0.73 0.73
0.55 9.53 0.55 9.52 6.55 0.61 0.51 0.53 0.56 0.64 0.68 0.6 1 0.59 1.14 I 03 1.12 I.40 1.32 0.98 0.95 1.09 1.12 1.08 1.03 0.78 0.76 0.88 rJ.231 0.83 1.05 1.04 0.89 0.83 0.86 0.88 0.91 0.86 0.61 0.65 0.88 C-83 6.82 1.09 1.21 1.19 0.96 0.87 0.85 0.90 0 87 0.65 0.67
0.70 ff.75 0.79 0.89 0.85 0.88 0.83 0.88 0.92 0.92 0.90 0.79 0.76 1.11 0.98 1.09 I J3 1.33 1.06 1.09 1.26 1.16 1.06 1.20 0.98 1.14
1.08 J -33 J .24 1.13 1.13 0.86 0.88 0.81 0.62 0.68
.68 0.77 0.79 0.75 0.70 0.78 0.72 0.75 0.84 1 .oo 1.30 I.21 1 10
99 1.01 1.12 1.12 1.05 1.11 1.22 1.20 1.17 1.13 1.41 1.22 1.23 .81 0.81 0.85 0.85 0.92 0.98 0.89 0.89 0.89 1.17 1 23 I .07 0.83
0.92 0.98 I -05 0.85 0.8 1 0.86 0.91 0 96 0.74 0.68
1.02 I.01 I .O7 ! -26 1.25 1.14 1.13 1.05 1.08 1.02 1.06 I.14 1 15 1.19 1.09 1.23 J ,461 1.11 1.23 1.50 1.45 1.42 1.23 1.35 1.47 1.56 0.78 0.76 0.79 8.96 0.97 0.90 0.94 0.86 0.86 0.84 0.90 0.89 0.80 0.77 0.76 0.79 0.97 1.00 0.96 0.98 0.88 0.88 0.84 0.90 0.88 0.82
J 1.1 I 1.14 1.09 1.11 1.04 1.13 1.09 0.99 0.99 1.02 1.10 1.20 1 J.t.84 1.18 1.12 0.97 1.19 1.34 1.14 0.97 0.90 0.92 0.95 1.06
OX:! 0.82 0.94 0.86 0.83 9.91 0.84 0.75 0.79 0.83 0.84 0.78 0.84 0.85 0.87 0.83 0.86 0.93 0.88 0.78 0.79 0.79 0.78 0.76
0.66 0.62 0.72 0.89 0.99 0.84 0.81 0.84 1.06 ! -02 1.19 1.18 I .03
0.75 0.7 0.77 0.84 0.77 0.75 0.83 0.92 1.14 1.04 0.98 0.91 0.73
81 Qb” @Be aor; “.._ 1.02 1.07 1.11 1.07 1 .os 1.09 1.15 1.07 0.99 121 I.37 1.50 1.43 1.22 1.17 1.24 1.12 1.19 1.21 0.99 1.08 1.01 0.90 G.92 0.94 0.75 0.76
6.78 0.76 0.83 0.93 0.92 G-99 0.96 1.00 0.95 0.99 1 AIS 0.93 0.83 J s27 J -37 1.43 152 1.37 1.33 1 A5 1.14 1.12 1.44 1.04 1.05 0.91 0.87 0.93 0.95 0.75 0.74
1 .QJ 1.32 167 1.11 0.98 0.80 0.83 0.83 0.80 0.63 0.65
except Japan, unchanged, and the U.S.A. with a 3% increase. Notwithstanding these percen- tage increases, the prices of Portland cement in most European countries other than the U.K. remained well below those in the U.S.A., largely because of favourable exchange rates for the various currencies. U.K., Canadian and Australian prices in some 10% to 20% U.S.A.
As stated in the prices and indices products in Japan
both 198 1 and 1982 were higher than those in the
footnote to Table 5, the given therein for steel are based on “market”
prices (see Vol. 5, No. 4, pp. 245246), and
TABLE 7
Indices of erected costs of plants
185
these all showed slight decreases from 198 1 to 1982. For comparison purposes in Table 6, data for steel plate prices are based on pro- ducer, or “ex works”, prices (see Vol. 5, No. 4, p. 254).
The indices of erected costs of plants (Table 7) reflect the materials and labour costs increases from 1982 to 1983. These indices are derived by the method described in earlier articles [ 1,2] using basic “ex works” prices for Portland cement, steel reinforcing bar, heavy steel sections and steel plate, together with man-hours corrected for as- sumed productivities in the various countries
As at Jan. 1 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983
Belgium 0.49 0.61 0.61 0.68 0.79 1.00 1.09 1.16 1.27 1.29 1.40 1 so 1.64 1.89 Denmark 0.48 0.59 0.59 0.67 0.76 1 .oo 1.02 1.06 1.16 1.27 1.38 1.54 1.64 1.99 France 0.49 0.59 0.64 0.70 0.79 1 .oo 1.13 1.25 1.34 1.46 1.59 1.82 2.05 2.50 W. Germany 0.59 0.68 0.75 0.80 0.88 1 .oo 1.03 1.07 1.11 1.14 1.21 1.29 1.38 1.53 Italy 0.43 0.50 0.54 0.57 0.74 1 .oo 1.19 1.43 1.67 1.92 2.27 2.67 3.15 3.89 Netherlands 0.5 1 0.60 0.67 0.70 0.78 1.00 1.09 1.14 1.22 1.18 1.24 1.31 1.42 1.54 UJ.K. 0.48 0.56 0.64 0.71 0.78 1 .oo 1.30 1.45 1.61 1.76 2.04 2.35 2.56 2.78 Australb 0.55 0.59 0.66 0.69 0.78 1 .oo 1.15 1.33 1.46 1.57 1.71 1.93 2.15 2.58 Canada 0.65 0.70 0.73 0.77 0.86 1.00 1.20 1.33 1.46 1.56 1.76 1.95 2.24 2.46 3apan 0.55 0.62 0.63 0.69 0.78 1 .oo 1.11 1.26 1.39 1.50 1.58 1.70 1.79 1.84 IV orway 0.53 0.63 0.69 0.74 0.83 1.00 1.10 1.22 1.35 1.45 1.53 1.69 1.79 2.07 Sweden 0.55 0.59 0.65 0.69 0.81 1 .oo 1.05 1.16 1.24 1.37 1.49 1.67 1.81 2.05 T.J.S.A. 0.66 0.7 1 0.77 0.82 0.87 1 .oo 1.11 1.18 1.27 1.39 1.53 1.68 1.85 1.96
TABLE 8
Comparison of erected costs of plants with U.S.A. = 1 .O
As at Jan. 1 1970 1971 1972 1973 1!>174 1975 1976 1977 1978 1979 1980 1981 1982 1983
Belgium 0.58 0.68 0.65 0.73 0.94 1.07 1 .oo 1.01 1.10 1.18 1.36 1.21 11.92 @.81 Denmark 0.64 0.73 0.71 0.76 0.97 1.06 1.01 0.98 0.98 1.10 1.13 1.05 O.I?7 0.76 France 0.57 0.61 0.61 0.68 0.83 0.85 0.93 0.89 0.87 0.96 1.02 1.04 0.82 0.75 W. Gtxmany 0.62 0.71 0.77 0.81 1.08 1.02 0.98 0.99 1.02 1.12 1.20 1.13 0.88 0.85 IMY 0.58 0.63 0.63 0.66 0.78 0.86 0.88 0.81 0.82 0.91 1.01 1.01 0.78 0.79 Netherlands 0.60 0.66 0.72 0.75 0.97 1.04 1.05 1.05 1.12 1.13 1.18 1.12 0.82 0.82 U.K. 0.58 0.62 0.66 0.69 0.72 0.77 0.81 0.70 0.72 0.80 0.94 1.08 0.86 0.79 Australia 0.62 0.62 0.66 0.67 0.87 0.92 0.89 0.94 0.85 0.87 0.84 0.90 0.89 0.86 Canada 0.83 0.87 0.86 0.82 0.90 0.92 0.95 1.05 0.98 0.87 0.90 0.90 0.92 0.92 Japan 0.38 0.40 0.39 0.45 0.54 0.58 0.55 0.59 0.65 0.82 0.79 0.77 0.73 0.60 Norway 0.72 0.79 0.83 0.87 1.09 1.16 1.16 1.28 1.25 1.29 1.31 1.32 1.07 1.00 Sweden 0.86 0.87 0.90 0.95 1.17 1.24 1.18 1.24 1.13 1.19 1.26 1.29 0.99 0.90
1J.S.A. < 1.0 >
and extended at the appropriate hourly labour cost. In the EEC countries the large increases in ‘ihe prices of steel products in the last year resulted in increases in erected plant costs rangir.g from about 10% in W. Germatly, the Netheriands and the U.K. to over 20% in Denmark, France and Italy. The last two countries had, of course, above-average in- creases in labour costs in addition. For count&v outside the EEC, except Japan and the U.S.A., increases in erected plant costs covered much the same range, with 10% in Canads, 13% in Sweden, 16% i:n Norway and 20% m Australia. Japan fared best of the thirte.en countries listed with :m increase of only 3% from 1982 to 1983 in erected plant
costs. The corresponding increase in the U.S.A. was 6%.
The comparison of erected plant costs with those in the U.S.A. (Table 8) reveals the advantages to most countries of their im- proved currency exchange rates against the U.S. dollar. Despite large increases in their domestic indices, nine countries improved their position relative to the U.S.A., and only Italy, the Netherlands and Canada failed to do so.
1 Eng. costs Prod. Econ., 2 ILg. Costs Prod. Econ.,
6 (1982) 272. (1982) 18.