With realised projects we know the costs in the countries. Wages, energy and interests show great differences. Material, real-estates and transport are nearly similar. We compare for you in the most interesting places: what do you have to pay to manufacture a typical product:

in the light industry (clothes, shoes, home textiles etc.)
in the manufacturing from components (automotive supplies, metal, electro technology) and
in the building industry (building materials, structural engineering, supply engineering, infrastructure, energy and environment).

Click the countries

Bulgaria
Moldova
Romania
Serbia and
Ukraine

and have a look, as costs stand. The table shows the details, our price per piece compares the costs of the sample products

concret block
sparkplug and
T-shirt

How did we calculate? We made many simplifications, but plausible in the case of applied economics. If you have any helpful suggestions we will be much appreciated!

We present our production functions in each of the three sectors:

building materials
automotive supplies
textile & cloths

The formula is production cost by piece = (sum of salaries + energy/water + real-estate costs + capital charges) / production volume so

p = (aw + bm + cu + di + ek)

Whereas the variables are defined as followed

p costs by piece in €
w salary costs by expert worker (total labour cost / month)
m salary costs by expert worker (total labour cost / month)
u costs of public supply and disposal that is cubic metre water × 0,2 + gas × 0,3 + kWh electricity × 0,5
i interest charges (real interest rate for long-term loan for five years)
k costs of the real-estate that is square metre land acquisition in a radius of 10 km around the capital city, creation of a building with machinery and equipment, accrual to local conditions

and the coefficients as followed:

a salary portion of costs
b material portion of costs
c energy intensity incl. gas and water etc. of the production
d interest portion of costs
e accruall portion of costs

Only the coefficients a, c and d are defined product-specific, the remaining ones are 1. Ergo the costs w, u and i, who are specific for the countries, are subscripted with Romania = 1.

Generally the sample products are mentioned, they are

concret block
sparkplug
T-shirt

For supply and capital costs we have defined the basic formula.

u = cubic metre water x 0,2 + gas x 0,3 + kWh electricity x 0,5
k = (estate costs + plus building occupancy expenses +costs for machinery and equipment) : number of amortisation years

Due to the measured country indexes during the projects (example Romania) the followed production function are to differ:

p I: (0,21 w + m + 0,35 u + 0,03 i + k)
p II: (0,43 w + m + 0,25 u + 0,02 i + k)
p III: (0,18 w + m + 0,40 u + 0,04 i + k)

in the respective production function all the constants are together, this means m+k must be as big as 1 minus the sum of all independent variables w, u, i; so m + k = 1 – (w + u + i). The natural number which is given by m+k will be retained as a constant in the formula (for every country).
The product price will be subscripted for Romania in the data mentioned way, and then subscripted for the other countries in the index, for example T-shirt = 1,50 varied, so Moldova-T-shirt = 1,35, Serbia-T-shirt = 1,38 and so on.

Carl Culator™

Compare the production costs for several countries?