2020 annual CEPCI average value – Chemical Engineering
By Scott Jenkins |
Since its introduction in 1963, the Chemical Engineering Plant Cost Index (CEPCI) has served as an important tool for chemical-process-industry (CPI) professionals when adjusting process plant construction costs from one time period to another. The CEPCI consists of a composite index assembled from a set of four sub-indices, each one the weighted sum of several components. Most of these components correspond to Producer Price Indexes (PPIs), updated and published monthly by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS; Washington, D.C.; www.bls.gov).
According to BLS, the PPIs “track the average change in net transaction prices that domestic producers in the mining, manufacturing, agriculture, and forestry sectors, as well as selected services industries, receive for the products that they make and sell.” The price quotations that the BLS uses to build these indexes come from a statistically chosen sample of representative transactions obtained from a statistically chosen sample of representative producers in each 600 or so industries. From these several thousand indexes, 41 PPIs have been selected as inputs to the CEPCI and sub-indexes. These PPIs cover products that are important for CPI plant construction,…