Case study of obsolescence and equipment productivity

The change in productivity is studied for six different pieces of earthmoving equipment over a period of 15 years. It is shown that the production rate of this group of equipment has increased 1.58% on average per year. During the same period, without adjusting for inflation and making specific assumptions, the unit price of production has increased at an average rate of 1.77% per year. The results of this analysis may be used in modeling obsolescence costs in equipment replacement analysis. The equipment considered includes two models of wheel-type loaders, one track-type loader, one scraper, and two track-type dozer models.