Marshall and Stevens index

Marshall and Swift Equipment Cost (formerly Marshall and Stevens Index) Chemical Process Industries Output Chemical Engineering... 

A composite index for the United States process plant industry is published monthly in the journal Chemical Engineering, the CPE plant cost index. This journal also publishes the Marshall and Stevens index (M and S equipment cost index), base year 1926. 

The Marshall and Swift (M S) Equipment Cost Index (6), formerly Marshall and Stevens, for installed equipment costs is pubHshed monthly in the ChemicalPngineering]om n. A. The indexes reported are the all-industries, process industries, and several specific industry indexes. The yearly all-industries index, given in Table 1, is based on 47 industrial categories. This is commonly used for the translation of purchased process equipment costs, even though... 

Index (Reference 27) Engineering News Record (ENR) Construction Index (Reference 28) Marshal and Stevens Equipment Index (Reference 29) and Chemical Engineering Plant Index (Reference 29). 

The cost of equipment or of a complete plant must be up-graded to account for the reduced purchasing power of the dollar (or pound) from a given time datum to the present. Various cost indices are published annually (and monthly, see Chemical Engineering magazine). Those of particular relevance to chemical plant costs are the Nelson Refinery Construction Index, Chemical Engineering (CE) Plant Cost Index, and the Marshall and Swift (M S, previously Marshall and Stevens) Equipment Cost Index. These indices apply to complete plants rather than individual items of equipment. The appropriate equation is C2 = C, (I2/I ), where Zis the relevant index, and the suffixes represent different time periods. 

The ratio method is a simple technique whereby known capital cost data for an existing chemical plant are adjusted to provide a cost estimate for the desired plant capacity. This method is also able to update figures to account for inflationary effects of past years. Finally the capital cost figure is adjusted for exchange rate differences between countries. The method is centred around the use of key cost estimation indices such as the CE Plant Cost Index and the Marshall and Stevens (M S) Index. 

Marshall and Swift, MS (formerly Marshall and Stevens, 1926 = 100) cost compiled quarterly for U.S. conditions, primarily for insurance companies interested in the changing value of the assets of companies. A separate MS index is compiled for the overall industry and for eight process and four related industries. Pubhshed in each issue of Chemical Engineering. 

Marshall and Stevens Equipment Index (MS). An index with the value for the year 1926 equal to 100 is published quarterly in the Process Equipment Section of Chemical Engineering as the Marshall-Stevens Eng. Neu) Recordj 143(9) 398 Sept. 1, 1949) 157(22) 81 (Dec. 6, 1956),... 

The Marshall and Stevens equipment cost index or the Chemical Engineering magazine plant cost index are usually used. Current values are given in each issue of Chemical Engineering magazine. Values for several years cost indices are tabulated in Table 11-1. The total uninstalled equipment cost will be the sum of condenser, reboiler, tower casing, and tray costs. The total capital cost is then found from Eq. (11-1). The capital cost per year equals the capital cost times the depreciation rate. Note that cost estimates can easily vary by up to 35%. 

Total cost = totol weight X (6c - - folwlcation cost -f- erection cost) Marshall and Stevens Process Industries Averoge" cost index = 180... 

This situation can be illustrated by Fig. 5, which relates to the same base of 100 in 1958 the changes in the Nelson, Chemical Engineering and Marshall/Stevens indexes in the United States, by comparing the observed increase in the average costs of petrochemical plants over the 1960/1985 period. Hence this is the curve that should be used to make the earlier data current. -. ... 

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