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Installation Costs 2003 -2011

We’ve been clearing out some old files this week. In 2003 we were the first people to move away from project pricing everything to pricing commodities based on our overall spend rather than on each project. This meant that we could guarantee suppliers a larger volume of purchasing rather than asking them to price a piece of cable every couple of weeks.

This means that we can now look back at the history of prices. Back in 2003 the copper price was £1,050 a tonne, now it is around £8,000 a tonne. This has lead to these prices:-

2003 4c50 £4.02 per m                    2011 £14.64 per m
2003 4c35 £22.62 per m 2011 £10.61 per m

Meanwhile steel has risen in price as well from around £200 a tonne in 2003 to about £450 a tonne today. These figures depend on grade and constituents.

This makes it more remarkable then that we have seen a decline in the price of steel based commodities for example:-

2003 41*21 strut £2.38 per m      2011 £1.92 per m

Meanwhile if inflation was simply driving the price differential – a piece of steel that cost £1.00 in 2003 would now cost £1.28.

So despite the relative  change in the price of the commodities overall their price increase has soared beyond normal inflation figures. The message for commodities would seem to be buy now before it’s too late. The message for installation costs would seem to be less clear cut.