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 CONSTRUCTION AND EQUIPMENT COSTS 



To make a sound decision on the best way to provide for storing and 

 packing Entiat growers' fruit, some guides are needed as to the amount of 

 capital that would be required. This information is needed in deciding 

 whether or not to rebuild facilities in Entiat, and if so, the number and 

 size of facilities most economical to growers. 



The following information is believed to be the best available for modern 

 facilities in the Pacific Northwest. They are estimates based on general 

 or standardized types of facilities. Actual costs of a specific plant 

 in a certain location with specific types of equipment can be made only 

 by qualified architects and engineers from study of the special situation. 

 Hov^ever, these estimates will serve as a guide to growers in malcing the 

 basic decision as to packing and storage facilities for their fruit. 



Table 2 gives estis^tes of present-day costs for constructing and equipping 

 plants ranging in capacity from 50,000 to 400,000 boxes. The types of 

 costs included under the headings Construction and Equipment are given in 

 a footnote to the table. These figures do not include boxes, pallets, 

 and other supplies. Neither do they give any consideration to even minor 

 amounts of reusable equipment from the old plants. 



The table points out the "economies of scale", that is, the advantages of 

 larger-size or larger -scale operations as compared to smaller operations. 

 In the first place, it is evident that the construction of one large 

 packing and storing facility would require less investment per box than 

 a smaller facility (right-hand column of table). Where the cost of con- 

 structing and equipping a 400,000-bo3c plant is approximately $2.16 a box, 

 the cost for a 200,000-box unit is $2.61 a box and for a 100,000-box 

 unit, $2.92 a box. 



Secondly, table 2 shows that the total investment for constructing and 

 equipping one large facility would be less than that for two smaller units 

 with the equivalent packing capacity. For example, where a 400,000-box 

 unit would cost approximately $865,000, two 200,000-box units would cost 

 approximately $1,044,800 or $179,800 more. 



Third, large-scale operations provide greater opportunities to install and 

 use technologically improved equipment than smaller operations. This can 

 be an advantage, not only from a lower per unit investment cost but also 

 because it makes possible the use of labor saving equipment on a practical 

 basis and perhaps with quality improvement. 



Thus, if growers decide to rebuild facilities in Entiat, definite savings 

 can be made by constructing one large unit rather than two smaller 

 facilities. 



