Gary Farrar
Contributing Editor
Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose quickly to 2,475.6 in December 2012 from 2,467.4 in January of the same year. Then it slowed and ended with 2,525.9 in December 2013.
The labor index rose to 3,166.7 from 3,019.1 over the 2-year period, while the materials index decreased to 1,564.8 from 1,639.8.
The miscellaneous equipment index varied a modest 41 points in the 2-year comparison. The category includes pumps and compressors, electrical equipment, heat exchangers, instruments, and engines. They are thus manufactured items, and their costs are a measure of manufacturing efficiency.
The Nelson-Farrar refin-ery operations index fell and then rose during the 2-year period before settling with a very mild increase. The process unit index fell during 2012 before ending with a 42-point gain by yearend-2013, increasing to 815.1 in December 2013 from 763.3 in January 2012.
