Economic Analysis and Database Software

Economic Analysis and Database Software - Intervale Consulting

Our Methods

Intervale Consulting Group, Inc. principals have been involved in the chemicals industry for over 80 years. During that time we have assembled an extensive data base of information in the design, technology, operations, maintenance, safety, health, environmental impacts, industry economic cycles, major equipment costs, project costs, raw material costs and product costs.

We have used this information to develop a zero-based, “cradle-to-grave” economic analysis for chemicals and polymers projects which includes the following:

Major Equipment Costs

Costs derived from actual costs of major equipment purchased for previously quoted/purchased equipment and constructed plants. Costs are scaled up and escalated based on factors unique to the industry.

Total Installed Cost (TIC)

Major equipment costs are used to produce a factored estimate of the Total Installed Cost (TIC) for a given plant. The factors used to calculate TIC are those developed from actual plant construction costs.

Individual Product Analysis (IPA)

IPA is developed using actual, design or calculated raw material, catalyst, chemical and utility efficiencies. Direct and overhead costs come from actual plant staffing figures and other costs.

Historical Pricing

Our databases include historical pricing for raw material and product pricing over a multitude of economic cycles dating back to the 1980’s; used to predict the economic cycle of projects and how many cycles the plant will experience during its useful life.

Return on Investment

The final step in this process is to calculate return-on-investment (ROI) and payback period.

This economic analysis is typically used to establish economic feasibility for plant expansions, de-bottlenecking projects, and grassroots facilities.

In 2016, Intervale was engaged by a polyvinyl chloride producer to assist in the economic analysis of a single plant site, with the objective of providing the information needed to decide whether to retain or divest of the site. Intervale’s analysis indicated that the site was economically viable and provided positive cash flow for the organization. In addition, Intervale forecasted that the site would remain competitive for the foreseeable future.

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