cost and price indices
TRANSCRIPT
Engineering Costs and Production Economics, 8 (1985) 237-248 ElsevRr Science Publishers B.V., Amsterdam - Printed in The Netherlands
231
INTRODUCTION
COST AND PRICE INDICES Norman Boyd
When the ‘Encost’ indices of erected costs
of plants as at January 1, 1984 were published [ 11, it marked the first occasion in the fif- teen years covered by the indices in which cost escalation seemed to be levelling off in some of the countries dealt with in the series, with West Germany, the Netherlands, Canada and Japan showing virtually no change from the January 1983 level. For the remaining nine countries, escalation through 1983 ranged
from 5% to 12.6%, although these increases reflected a broad reduction of 10% on the previous year. These reductions in the rates of escalation suggested that a general stabilisa- tion in prices and costs could occur in the not-too-distant future.
ERECTED COSTS OF PLANTS
Table 1 shows the changes in erected costs throughout 1984. Japan had the same index for the third successive year and Belgium shows little change. While Canada had a small increase in 1984, it did little more than offset the 1983 reduction, and the January figures for 1983 and 1985 are, for practical purposes, the same. Both West Germany and the Nether- lands, having remained constant in 1983, had slight increases in 1984, but the other nine countries, with the exception of the U.K., show reductions in the size of the increments compared with 1983. For the U.K., the in- crease of about 6% in 1984 was slightly greater than the 5% in 1983. Italy still heads the list of countries with the greatest increase,
TABLE 1
Indices of erected costs of plantsa as at January lst, unless otherwise stated
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1984 1985
July 1
Belgium 0.68 0.79 1 .oo 1.09 1.16 1.27 1.29 1.40 1.50 1.64 1.89 1.99 1.99 2.01 Denmark 0.67 0.76 1 .oo 1.02 1.06 1.16 1.27 1.38 1.54 1.64 1.99 2.14 R 2.17 2.19 France 0.70 0.79 1 .oo 1.13 1.25 1.34 1.46 1.59 1.82 2.05 2.50 2.73 2.81 2.84
W. Germany 0.80 0.88 1 .oo 1.03 1.07 1.11 1.14 1.21 1.29 1.38 1.53 1.52 1.53 1.56 Italy 0.57 0.74 1.00 1.19 1.43 1.67 1.92 2.27 2.67 3.15 3.89 4.38 4.68 4.71
Netherlands 0.70 0.78 1 .oo 1.09 1.14 1.22 1.18 1.24 1.31 1.42 1.54 1.54 R 1.57 1.57
U.K. 0.71 0.78 1 .oo 1.30 1.45 1.61 1.76 2.04 2.35 2.56 2.78 2.92 3.03 3.10
Australia 0.69 0.78 1 .oo 1.15 1.33 1.46 1.57 1.71 1.93 2.15 2.58 2.77 2.89 2.91
Canada 0.77 0.86 1.00 1.20 1.33 1.46 1.56 1.76 1.95 2.24 2.46 2.42 2.45 2.47 Japan 0.69 0.78 1 .oo 1.11 1.26 1.39 1.50 1.58 1.70 1.79 1.84 1.84 1.81 1.84 Norway 0.74 0.83 1 .oo 1.10 1.22 1.35 1.45 1.53 1.69 1.79 2.07 2.18 2.17 2.28 Sweden 0.69 0.81 1 .oo 1.05 1.16 1.24 1.37 1.49 1.67 1.81 2.05 2.26 2.35 2.37 U.S.A. 0.82 0.87 1 .oo 1.11 1.18 1.27 1.39 1.53 1.68 1.85 1.96 2.09 2.11 2.13
“For method used to calculate costs and indices see Eng. Cost Prod. Econ., 6 (1982) 272 and, 7 (1982) 18.
0167-188X/1985/$03.30 0 1985 Elsevier Science Publishers B.V.
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7 17
2 19
8 21
2 23
0 24
1 24
6 11
2 12
3 13
8 15
2 16
8 19
7 22
6 25
2 26
7 R
27
9 27
5
108
115
126
136
149
166
182
188
203
211
213
108
114
122
129
140
151
166
177
188
187
190
Indi
ces
appl
y at
Oct
ober
of
eac
h y
ear
un
less
oth
erw
ise
stat
ed.
a an
d b
See
Tab
le 2
. C
Fir
st Q
uar
ter
1984
. dS
econ
d Q
uar
ter
1984
.
TA
BL
E
4
Cur
renc
y ex
chan
ge
rate
s re
lativ
e to
U.S
. do
llar
1982
19
83
1984
Firs
t Se
cond
ha
lf
half
A
nnua
l av
erag
e A
pr.
1 Fi
rst
half
O
ct.
1 Se
cond
ha
lf
Ann
ual
aver
age
Apr
. 2
Firs
t ha
lf
Oct
. 2
Seco
nd
half
A
nnua
l av
erag
e
Bel
gium
B
.Fr.
43
.5
46.4
6 44
.54
48.2
0 41
.45
53.2
0 53
.40
50.3
5 53
.12
55.3
7 61
.68
60.6
5 58
.25
Den
mar
k D
.Kr.
8.02
8.
56
8.24
8.
59
8.68
9.
47
9.53
9.
10
9.57
9.
93
11.0
0 10
.86
10.4
2 Fr
ance
F.
Fr.
6.26
6.
89
6.52
1.
21
7.20
7.
96
8.01
7.
60
8.00
8.
33
9.33
9.
20
8.81
W
. Ger
man
y D
M
2.31
2.
45
2.40
2.
43
2.44
2.
62
2.64
2.
54
2.61
2.
12
3.05
3.
00
2.88
It
aly
Lir
e 13
02
1390
13
37
1445
14
37
1587
15
88
1514
16
16
1669
18
82
1850
17
68
Net
herl
ands
G
uild
er
2.62
2.
70
2.65
2.
74
2.73
2.
93
2.96
2.
85
2.94
3.
06
3.43
3.
38
3.24
U
.K.
Poun
d 0.
552
0.59
4 0.
572
0.67
4 0.
648
0.67
4 0.
676
0.66
3 0.
697
0.71
2 0.
806
0.80
6 0.
763
Aus
tral
ia
A.$
0.
939
1.01
6 0.
977
1.15
5 1.
104
1.11
7 1.
125
1.10
9 1.
064
1.11
4 1.
201
1.19
6 1.
153
Can
ada
Can
. $
1.24
1.
26
1.24
1.
23
1.23
1.
23
1.24
1.
23
1.28
1.
28
1.31
1.
32
1.30
Ja
pan
Yen
24
0 25
1 24
4 23
9 23
6 23
4 23
5 23
5 22
5 23
2 24
6 24
5 23
9 N
orw
ay
N. K
r. 6.
04
6.13
6.
41
7.21
7.
16
7.33
7.
46
7.31
7.
50
7.16
8.
80
8.65
8.
24
Swed
en
Sw.K
r. 5.
85
6.55
6.
22
7.50
7.
46
7.81
7.
83
7.65
7.
72
7.99
8.
63
8.62
8.
33
For
earl
ier
see
Vol
. ye
ars
5 78
and
16
1,
and
pp.
Vol
. 7,
10
5.
p.
but its 12.6% in 1983 dropped to 7.7% in 1984, with Sweden falling from 10.7% to 4.7%, France from 9.2% to 3.9%, and U.S.A. from 6.6% to 2.4%.
The reasons for the changes in erected-plant cost indices in the twelve months from January 1, 1984 can be gleaned from an examination of Tables 2 and 3, bearing in mind that materials account for about one third (of which steel plate is about half) and hourly labour costs for about two thirds of the overall index. The labour costs in the chemical and metal industries are not used in the assessment of the plant cost indices. These tables show that there is a continued rise in hourly labour costs in all thirteen countries,
ranging from about 2% in the Netherlands to about 10% in Italy. On materials, the changes in 1984 range from increases of 6% in the U.K., 5% in Australia and 4% in Italy, to de- creases of 5% in Norway and 4% in Belgium and Japan, West Germany and the Nether- lands show no change, and the changes for the remaining countries are within + 2%.
CURRENCY CHANGES
In 1984 and early 1985 the U.S. dollar continued to appreciate against most other
TABLE 5
243
countries. Table 4 sets out the relative values of the various currencies at 3-monthly inter- vals. It will be seen that, comparing annual average values for 1983 and 1984, the U.S. dollar rose about 2% against the yen, about 4% against the Australian and Canadian dollars, but by from 9% to 17% against the nine European currencies listed. The Swedish krona appreciated by about 9% relative to the dollar, the Norwegian krone by almost 13%, and the currencies of the seven EEC countries by between 13% and 17%.
INTERNATIONAL COMPARISON OF ERECTED COSTS
Since the increase in value of the U.S. dollar in most countries was greater than their rates of escalation, erected-plant costs in such countries declined still further relative to the U.S.A. Table 5 shows that, with a few excep- tions such as Italy and Japan in the early seventies, January 1985 saw the lowest erected plant costs vis-a-vis the U.S.A. in the fifteen years covered by the ‘Encost’ index. Costs in Japan are also rising relative to those in the EEC countries and are now virtually on the level of France, the U.K. and the
Comparison of erected costs of plants with U.S.A. = 1.0, as at January 1st unless otherwise stated -
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1984 1985
July 1
Belgium 0.73 0.94 1.07 1 .oo 1.01 1.10 1.18 1.36 1.21 0.92 0.81 0.72 R 0.69 0.60
Denmark 0.76 0.97 1.06 1.01 0.98 0.98 1.10 1.13 1.05 0.80 0.76 0.72R 0.70 0.62
France 0.68 0.83 0.85 0.93 0.89 0.87 0.96 1.02 1.04 0.82 0.75 0.68 0.66 0.58
W. Germany 0.81 1.08 1.02 0.98 0.99 1.02 1.12 1.20 1.13 0.88 0.85 0.76 0.74 0.64
Italy 0.66 0.78 0.86 0.88 0.81 0.82 0.91 1.01 1.01 0.78 0.79 0.74 0.75 0.65
Netherlands 0.75 0.97 1.04 1.05 1.05 1.12 1.13 1.18 1.12 0.82 0.82 0.73 0.71 0.61
U.K. 0.69 0.72 0.77 0.81 0.70 0.72 0.80 0.94 1.08 0.86 0.79 0.68 0.67 0.59
Australia 0.67 0.87 0.92 0.89 0.94 0.85 0.87 0.84 0.90 0.89 0.86 0.80 0.85 0.76
Canada 0.82 0.90 0.92 0.95 1.05 0.98 0.87 0.90 0.90 0.92 0.92 0.86 0.82 0.81
Japan 0.45 0.54 0.58 0.55 0.59 0.65 0.82 0.79 0.77 0.73 0.60 0.62 0.62 0.58
Norway 0.87 1.09 1.16 1.16 1.28 1.25 1.29 1.31 1.32 1.07 1.00 0.92 0.88 0.82 Sweden 0.95 1.17 1.24 1.18 1.24 1.13 1.19 1.26 1.29 0.99 0.90 0.76 0.77 0.70 U.S.A. - 1.0 t
244
TABLE 6
Comparison of prices, with U.S.A. = 1.0, for:
I Ordinary Portland cement
II Steel re-inforcing bar
III Steel sections (heavy) IV Steel plate
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984
1st half 2nd half
Belgium I 0.79 0.77 0.78 0.77 0.84
II 1.49 1.35 1.11 1.02 1.24
III 1.12 1.08 0.87 0.88 0.96
IV 1.14 1.53 1.10 0.87 0.94
Denmark 1 0.9 1 1.02 1.07 0.92 0.91
II 1.45 1.22 1.26 1.18 1.32
IV 1.12 1.38 1.03 0.84 0.85
France I 0.86 0.83 0.86 0.84 0.77
II 1.33 1.05 1.13 1.16 1.16
III 1.02 0.94 0.87 0.85 0.83
IV 1.12 1.20 1.29 1.09 0.89
Germany I 0.82 0.84 0.83 0.74 0.77
II 1.38 1.24 1.14 1.13 1.17
111 1.13 1.06 0.98 0.94 0.93
IV 1.23 1.23 1.06 0.94 0.91
Italy I 0.52 0.55 0.61 0.51 0.53
II 1.40 1.32 0.98 0.95 1.09
III 1.05 1.04 0.89 0.83 0.86
IV 1.09 1.21 1.19 0.96 0.87
Netherlands 1 0.89 0.85 0.88 0.83 0.88
II 1.53 1.33 1.06 1.09 1.26
IV 1.08 1.33 1.24 1.13 1.13
U.K. I 0.75 0.70 0.78 0.72 0.75
II 1.12 1.05 1.11 1.22 1.20
111 0.85 0.92 0.98 0.89 0.89
IV 0.92 0.98 1.05 0.85 0.81
Australia 1 1.26 1.25 1.14 1.13 1.05
II 1.48 1.11 1.23 1.50 1.45
III 0.96 0.97 0.90 0.94 0.86
IV 0.97 1 .oo 0.96 0.98 0.88
Canada I 1.09 1.11 1.04 1.13 1.09
II 1.12 0.97 1.19 1.34 1.14
III 0.94 0.86 0.83 0.9 1 0.84
IV 0.87 0.83 0.86 0.93 0.88
Japan 1 0.89 0.99 0.84 0.81 0.84
IV 0.84 0.77 0.75 0.83 0.92
Norway I 0.96 1.02 1.07 1.11 1.07
II 1.21 1.37 1.50 1.43
111 1.21 0.99 1.08 1.01
Sweden I 0.93 0.92 0.99 0.96 1 .oo
II 1.27 1.37 1.43 1.52
111 1.44 1.04 1.05 0.91
IV 1.32 1.67 1.11 0.98 0.80
0.88 1.17
0.90
0.86
0.95
1.16 0.88
0.83 1.25
0.92 0.87
0.83
1.20
0.90 0.87
0.56
1.12 0.88
0.85
0.92
1.16
0.86
0.84
1.17
0.89
0.86
1.08
1.42 0.86
0.88
0.99 0.97
0.75 0.78
1.06 1.14
1.05 1.22
0.90
0.95
1.37 0.87 0.83
0.91 0.92 0.77 0.77 1.08 1.15 0.91 1.08 1.02 0.93 0.73 0.72 0.94 0.90 0.66 0.66
0.93 1.05 0.90 0.77
1.05 1.15 0.93 1.03 0.87 0.82 0.62 0.65
0.93 1.01 0.88 0.80 1.05 1.19 0.98 1.01
0.92 0.92 0.70 0.68 0.88 0.87 0.65 0.69
0.84 0.82 0.72 0.74
1.06 1.08 0.90 1.10
0.98 0.86 0.69 0.82 0.93 0.87 0.73 0.73
0.64 0.68 0.61 0.59 1.08 1.03 0.78 0.76
0.91 0.86 0.61 0.65 0.90 0.87 0.65 0.67
0.92 0.90 0.79 0.76
1.06 1.20 0.98 1.14
0.88 0.81 0.62 0.68
1.00 1.30 1.21 1.10
1.13 1.41 1.22 1.23
1.17 1.23 1.07 0.83
0.91 0.96 0.74 0.68
1.02 1.06 1.14 1.15 1.23 1.35 1.47 1.56 0.84 0.90 0.89 0.80 0.84 0.90 0.88 0.82
0.99 1.02 1.10 1.20
0.90 0.92 0.95 1.06 0.79 0.83 0.84 0.78 0.79 0.79 0.78 0.76
1.02 1.19 1.18 1.03
1.04 0.98 0.91 0.73
1.09 1.15 1.07 0.99
1.17 1.24 1.12 1.19
0.92 0.94 0.75 0.76
0.99 1.05 0.93 0.83 1.33 1.45 1.14 1.12 0.93 0.95 0.75 0.74
0.83 0.80 0.63 0.65
0.72 0.64 1.06 0.92
0.59 0.56
0.63 0.59
0.82 0.67 1.05 0.90 0.64 0.53
0.73 0.64 0.84 0.92
0.54 0.50 0.62 0.57
0.73 0.66 0.88 0.83 0.62 0.57 0.63 0.59
0.57 0.53 0.75 0.68 0.57 0.54 0.63 0.62
0.72 0.68
0.93 0.74
0.61 0.56
0.95 0.85
1.17 1.03
0.70 0.65 0.59 0.54
1.12 1.13
1.64 1.58 0.70 0.72 0.68 0.71
1.25 1.18
1.11 0.88 0.76 0.73 0.71 0.70
1.05 1.03 0.67 0.61
0.97 0.92 1.16 0.85 0.65 0.52
0.74 0.7 1
1.00 0.90 0.62 0.59 0.60 0.57
0.59
0.85
0.49
0.59 0.73
0.44
0.52
0.48 0.62
0.48
0.53
0.61
0.66 0.52
0.74
0.90
0.58
0.49
1.06 1.41
0.67 0.67
1.15
0.83 0.69 0.68
0.96
0.60
0.81
0.85 0.43
0.66 0.92 0.53 0.52
245
TABLE 7
Comparison of hourly labour costs, with U.S.A. = 1.0
ISIC” 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984
Apr. Oct.
Belgium
Denmark
Germs
Fed. Rep.
Italy
Netherlands
U.K.
Australia
Canada
Japan
Norway
Sweden
351 371
382
5
35 l/2
38213 5
351
371
382
5
351
371 382
5
351
371 382
5
351 37 382 5
35112
371 382
5
3511213 31
3811213 5
35112
37112 382 5
35112 371 382
5
35112 382 5
35 371
382 5
0.84 0.91 0.97 1.01 1.10 1.29 1.36 1.28 0.97 0.74 0.67 0.65 0.55
0.83 0.96 0.94 1.03 1.05 1.18 1.33 1 .oo 0.87 0.66 0.68 0.68 0.51
0.81 0.85 0.9 1 0.99 1.04 1.19 1.28 1.18 0.91 0.76 0.68 0.67 0.58
0.64 0.73 0.80 0.90 0.98 1.16 1.24 1.21 0.93 0.71 0.64 0.65 0.56
0.68 0.70 0.73 0.77 0.75 0.90 0.97 0.89 0.63 0.56 0.52 0.52b 0.44
0.79 0.80 0.89 0.93 0.89 1.06 1.13 1.01 0.76 0.70 0.65 0.64b 0.55
0.62 0.63 0.67 0.73 0.74 0.89 0.97 0.90 0.65 0.59 0.57 0.59b 0.51
0.55 0.58 0.69 0.63 0.66 0.80 0.89 0.91 0.68 0.58 0.53 0.53 0.45 0.54 0.62 0.74 0.67 0.70 0.80 0.83 0.85 0.63 0.52 0.54 0.47 0.42
0.59 0.59 0.68 0.68 0.71 0.81 0.89 0.89 0.73 0.63 0.57 0.57 0.49
0.40 0.41 0.46 0.47 0.50 0.59 0.74 0.69 0.55 0.46 0.43 0.45 0.39
0.95 0.9 1 0.90 0.95 1.01 1.15 1.23 1.12 0.81 0.74 0.67 0.66 0.56 0.86 0.85 0.83 0.88 0.89 1 .oo 1.07 0.94 0.68 0.58 0.62 0.53 0.47
1 .oo 0.90 0.92 0.99 1.05 1.21 1.30 1.21 0.90 0.84 0.77 0.75 0.65
0.69 0.64 0.63 0.69 0.74 0.88 1.02 0.94 0.70 0.63 0.59 0.61 0.5 1
0.56 0.59 0.64 0.61 0.64 0.81 0.94 0.96 0.68 0.66 0.62 0.62 0.53
0.55 0.61 0.69 0.63 0.64 0.71 0.80 0.78 0.57 0.53 0.58 0.52 0.46
0.58 0.60 0.67 0.65 0.69 0.78 0.90 0.92 0.7 1 0.71 0.68 0.69 0.59
0.35 0.40 0.44 0.43 0.46 0.57 0.72 0.67 0.53 0.53 0.50 0.53 0.46
0.85 0.85 0.89 0.89 0.95 1.08 1.14 1.06 0.69 0.69 0.61 0.63 0.53
0.86 0.95 0.95 0.99 1.01 1.13 1.26 1.04 0.67 0.64 0.65 0.56 0.50
0.88 0.89 0.94 0.99 1.05 1.18 1.33 1.22 0.77 0.80 0.71 0.68 0.59 0.70 0.72 0.77 0.81 0.9 1 1.07 1.20 1.11 0.86 0.76 0.68 0.69 0.57
0.45 0.50 0.50 0.4 1 0.42 0.51 0.64 0.75 0.58 0.53 0.48 0.45 0.40 0.36 0.40 0.46 0.40 0.4 1 0.49 0.56 0.62 0.47 0.43 0.43 0.40 0.37 0.47 0.48 0.49 0.43 0.46 0.54 0.65 0.75 0.58 0.57 0.50 0.48 0.42
0.31 0.34 0.36 0.31 0.33 0.38 0.45 0.57 0.45 0.41 0.37 0.38 0.33
0.77 0.84 0.81 0.82 0.74 0.78 0.81 0.85 0.81 0.71 0.69 0.72 0.62 0.71 0.82 0.78 0.81 0.73 0.73 3.70 0.70 0.67 0.61 0.59 0.6 1 0.55
0.79 0.84 0.81 0.86 0.77 0.78 0.77 0.82 0.79 0.81 0.79 0.83 0.73 0.59 0.66 0.66 0.71 0.65 0.69 0.67 0.72 0.72 0.68 0.68 0.73 0.64
0.73 0.80 0.77 0.83 0.75 0.69 0.72 0.73 0.72 0.72 0.72 0.67 0.67
0.82 0.91 0.91 0.99 0.90 0.81 0.84 0.77 0.77 0.77 0.87 0.72 0.75
0.89 0.92 0.95 1.04 0.94 0.84 0.89 0.86 0.88 0.91 0.88 0.82 0.83 0.80 0.9 1 0.96 1.08 1.03 0.9 1 1.04 0.97 0.99 0.99 0.85 0.84 0.79
0.51 0.60 0.58 0.57 0.62 0.80 0.82 0.79 0.72 0,59 0.66 0.67 0.62
0.49 0.60 0.62 0.61 0.65 0.79 0.76 0.69 0.65 0.50 0.63 0.57 0.53
0.50 0.56 0.56 0.57 0.63 0.78 0.79 0.74 0.72 0.60 0.66 0.67 0.62 0.28 0.33 0.34 0.37 0.42 0.56 0.58 0.54 0.53 0.42 0.48 0.52 0.48
0.66 0.75 0.75 0.86 0.86 0.93 0.89 0.93 0.71 0.64 0.59 0.56b 0.50 0.81 0.87 0.95 1.12 1.09 1.17 1.17 1.20 0.96 0.87 0.82 0.79b 0.71
0.64 0.71 0.76 0.89 0.90 1 .oo 1.10 1.02 0.83 0.75 0.69 0.69b 0.62
0.77 0.78 0.88 0.95 0.86 0.95 1.03 1.05 0.74 0.65 0.54 0.54c 0.48
0.83 0.90 0.98 1.05 0.88 0.96 1.01 1 .oo 0.69 0.59 0.55 os1c 0.47 0.94 0.91 1.02 1.13 1.02 1.12 1.21 1.21 0.88 0.84 0.67 0.7oc 0.64 0.77 0.77 0.88 0.99 0.95 1.06 1.14 1.20 0.89 0.78 0.63 0.68C 0.59
“International Standard Industrial Classifications: See footnote to Table 8.
bFirst quarter 1984.
‘Second quarter 1984.
246
TABLE 8
Indices of average hourly earnings of adult manual” workers in selected industries (1974 = 100)
Country ISIC b 1974 1975 1976 1977 1978
Oct. Oct. Oct. Oct. Oct.
LWZll !Gquivalent
currency U.S. $
Belgium 351
371
382
krance 351
371
382
German bed. Rep. 351 DM
Italy
Netherlands
U.K.
Australia
Canada
U.S.A.
Denmark
Norway
Swcdcn
Japan
371
382
5
11.02 4.16 106 115 124 127
10.05 3.80 105 113 120 126
9.89 3.73 108 114 123 129
10.00 3.78 104 110 117 124
351
371
382
5
Lire 122 161 190 232
124 154 183 205
124 158 188 210
I25 158 187 218
351
37
382
5
Guildrr
1486 2.25
1542 2.34
1325 2.01
1255 1.90 10.60 3.93
10.73 3.98
9.47 3.51
9.70 3.60
115 123 134 141
109 120 130 139
112 120 130 137
114 123 135 148
35112
371
382
5
Pound 1.17 2.74 128 140 150 174
1.16 2.71 130 147 158 184
1.10 2.57 126 140 15s 177
1.04 2.43 128 143 157 175
35 11213
37
3811213
5
A. $ 3.79 4.98 113 127 139 150
3.73 4.90 112 128 144 150
3.42 4.50 108 123 135 143
3.55 4.67 112 128 141 149
35 l/2
37112
382
5
can. $ 4.74 4.81 113 128 140 I50
5.43 5.51 II6 127 141 152
5.13 5 20 115 126 136 147
6.77 6.87 119 132 148 156
351
371
382
5
U.S.$ 5.56 110 122 133 142
5.81 110 120 135 149
5.09 108 115 126 136
6.99 106 113 118 I?7
35112
38213
5
D.KI. 26.68 4.36 :15 129 143 159
27.92 4.56 119 131 142 160
29.17 4.77 114 129 144 160
35112
382
5
N. Kr. 22.12 4.00 113 137
23.39 4.23 118 140
26.39 4.78 116 136
165
168
165
35
371
382
5
Sw.Kr. 18.50 4.17 121 135
20.90 4.71 120 132
19.37 4.35 118 130
22.45 5.06 119 133
153
155
151
145
141
141
149
153
151
149
158
12 monthsto Dcc.1974) (-Dee. 1975) ( Dec. 1976) (-Dee. 1977) ( Dee. 1978)
B.FI.
t’. Fr.
157.25 4.01 118 131 147 I52
171.89 4.38 108 122 132 137
133.94 3.42 114 125 137 142
130.07 3.32 116 132 146 150
12.02 2.54 114 129 145 165
11.71 2.48 121 136 152 168
11.04 2.33 115 135 153 169
10.08 2.13 115 137 154 171
35112 Ye” i115.8 3.74
371 1126.1 3.78
382 940.8 3.16
5 722.8 2.43
112 121 132 139
118 126 138 143
114 122 133 139
I17 132 148 160
“I,or Japan, manual and non-manual workers, including holiday pay (see: Vol. 5, pp. 75-77).
hlnternational Standard Industrial Classification:
35 Manuiacturr of chemicals 353 PetlOleum refineries
35 1 Manutacture of industrial chemicals 37 Basic nwal industries
352 Manutacture ul-other chemicals 371 Iron and ?iteel basic industries
241
Apr. Ott Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct.
183
172
169
180
198
186
189
194
208
200
200
202
221 223 226 p
204 R 214 215 p
212 216 219 p
210R 215 219 p
219
218
227
221
247
249
253
263
284
289
289
296
165 117
157 164
156 164
167 174
190 203 230 272 300
189 203 226 273 3c4
189 201 230 276 306
195 210 243 289 317
128 137 142 149 157
133 141 144 156 161
135 143 148 158 162
134 141 147 153 161
291 316 381 443 512
255 277 353 409 476
262 284 363 419 490
279 301 314 448 518
148
147
143
162
323 R 334 340
308 R 327 330
323 R 337 340
329 R 340 350
137
141
146
144
146
149
153
151
153
154
159
156
159 162 164
160 161 163
164 164 169
162 165 166
351
313
321
327
414
385
395
406
411
442
453
484
543 578 593
507 542 557
523 559 571
547 585 602
155
154
153
170
165
164
162
180
175
172
171
190
183 R 190 193
175 177 180
172 174 176
188R 187 189
247
247
240
247
275
272
263
266
295
296
286
289
208 228 259 283 R 313
209 232 261 291 332 R
207 230 255 282 301
201 227 259 283 306
173
165
157
162
325 335 352
3428 369 380
306 319 328
309 323 328
195
192
175
181
210
214
204
215
246
249
244
250 R
258 270 p 271 p
265 276 p 276 p
264 275 p 275 p
260 R 212 p 272 p
186
183
176
186
209
214
202
212
228
240
216
228
161 177 197 221 232
166 172 192 226 240
162 169 188 209 219
167 173 194 216 207
154 158 179 195 206
164 170 193 203 196
148 154 170 182 186
136 138 149 162 170
(3rd Or) (1st OrI (1st Qr) (1st Qr) (1st Qr)
177
177
180
240 244 253
252 256 265
222 224 231
202 207 203
169
180
164
147
(3rd Qr)
191
197
178
158
(3rd Qr)
204
208
183
169
(3rd Qr)
215 220
218 R 226
192 195
172 171
(3rd Qr) (1stQr)
225
222
197
174
189
191
195
210
208
211
233
232
240
246 258 258 p
241 250 250 p
252 261 261 p
185
198
189
(4th Qr)
199
211
204
(4th Qr)
222
232
230
(4th Qr)
163 162 184 196 221
173 172 196 209 232 171 171 190 209 228 (4th Qr) (2nd Qr) (2nd Qrl (2nd Qr) (2nd Qr)
169 174 201 216 231
167 172 192 209 224
161 166 187 206 220
170 179 200 213 219
( Dec.) ( ~Junc) (GJune) (-June) (GJune)
233 241
248 252
235 238
(4th Qr) (2nd Qr)
255
269
255
185
179
175
190
(-Dec.)
203
194
194
203
(GDec.)
213
209
210
208
(GDec.)
236 256 261
228 246 252
225 240 247
223 240 240
(-Dec.) (-June) (-Dec.)
154 157 165 169 173 177 186 177 194 197 202 150 152 162 158 175 179 182 179 187 189 189 150 154 161 165 171 176 181 176 184 186 190 172 176 183 192 198 201 205 201 ___ 711 219 223
372 Non-ferrous metal basic bldustries
381 Manufacture of fabricated metal products, excl. machinery
382 Manufacture of machinery excl. electrical
383 Manufacture of electrical machinery
5 Construction
248
Netherlands, while costs in Italy, at one time among the lowest of the EEC countries, are now among the highest.
Some caution should be observed in the use of Table 5. The materials prices and hourly labour costs used in its compilation are national averages, and local and regional variations can be quite substantial, particular- ly in the U.S.A. Some of the variations have been listed in previous articles [2-41. The comparison is based also on assumed relative productivities [5] in the thirteen countries, and productivity at individual sites can vary
widely from the assumed national average. Finally, the indices cannot, by their method of calculation, take account of design changes and where these have been substantial some allowance should be made.
REFERENCES
1 Eng. Costs Prod. Econ., 8 (1984): 3-14.
2 Eng. Costs Prod. Econ., 5 (1981): 245-254.
3 Eng. Costs Prod. Econ., 6 (1982): 267-273.
4 Eng. Costs Prod. Econ., 7 (1982): 13-18.
5 Eng. Costs Prod. Econ., 8 (1984): 137-144.