EQUIPMENT COSTS CONTINUE TO RISE

Gerald L. Farrar Contributing Editor Costs for the five equipment items which make up the Nelson-Farrar miscellaneous-equipment cost index advanced steadily over the 2-year period, 1987-88, As shown in the table at right, the miscellaneous equipment index average moved from 693.7 to 756.8 in 24 months. Greatest increase among the components making up the equipment average was that of heat exchangers, from 547.4 in January 1987, to 734.6 in December 1988. The least increase was shown by

July 2, 1990

Gerald L. Farrar
Contributing Editor

Costs for the five equipment items which make up the Nelson-Farrar miscellaneous-equipment cost index advanced steadily over the 2-year period, 1987-88, As shown in the table at right, the miscellaneous equipment index average moved from 693.7 to 756.8 in 24 months.

Greatest increase among the components making up the equipment average was that of heat exchangers, from 547.4 in January 1987, to 734.6 in December 1988.

The least increase was shown by electrical machinery from 508.7 to 524.1 over the 24-month period.

Index values for the pumps category rose from 992.1 to 1052.7 in the 24 months covered, while the engines category rose from 679.7 to 709.2. Instruments index in January 1987, stood at 740-5. In December 1988, the value had risen to 763.4.

These increases in index are a bit more modest than the average rate of inflation over the period covered. This reflects the high efficiency in manufacturing operations for these items.