MEP equipment manufacturers continue to report record backlog and market growth. Factory loading is not expected to lessen this year and some factories are reporting full bookings into First Quarter 2024.
Lead times for electrical and mechanical equipment have significant ranges depending on features and size. Despite unprecedented orders and backlog, manufacturers are beginning to engage additional suppliers and complete quality testing to utilize varying OEM components. To manage lead times, it is recommended to place orders early and closely coordinate on alternate products. HVAC equipment manufacturers are reporting an average 5-week improvement for industry-standard equipment configurations. Chiller plant loading from large data center and battery projects is affecting the upper lead-time range more so than supply chain constraints. Cooling tower lead-times are generally the same for both galvanized and stainless-steel construction.
Estimated Equipment Lead Times
Varies Due to Equipment Sizing
Electrical manufacturers are expanding capacity and enhancing supply chains, resulting in improved production. Anticipated lead time stabilization and refinement are expected by the end of the Third Quarter 2023. Some switchgear manufacturers report slight one to two-week lead time improvements, while others extend lead times. Generator manufacturers are receiving record orders for units over 1,000kw. The primary bottleneck remains the long lead time for UPS batteries. Despite current market conditions, a reduction in lead times isn't expected in the next 12 months.
Standard Lighting Fixture lead times remain consistent, but disruptions in the Chinese labor gap may impact them in the future. Specialty light fixtures have varying lead times, potentially exceeding the 8???12 weeks of standard fixtures. Lighting control lead times have improved, but a recommended lead time of 16???20 weeks from release is advised. Notably, lead times vary significantly among manufacturers.
| Year | AVG. INDEX | PERCENT% |
|---|---|---|
| 2004 | 100 | Base Year |
| 2010 | 114 | -4.5% |
| 2011 | 117 | 2.5% |
| 2012 | 121 | 3.5% |
| 2013 | 124 | 2.5% |
| 2014 | 126 | 2.0% |
| 2015 | 127 | 1.0% |
| 2016 | 129 | 1.5% |
| 2017 | 133 | 3.0% |
| 2018 | 138 | 3.8% |
| 2019 | 142 | 3.0% |
| 2020 | 145 | 2.8% |
| 2021 | 161 | 10.3% |
| 2022 | 185 | 15.1% |
| 2023 | 204 | 10.4% |
Cost Index
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