MTS Journal

2022  •  Volume 38  •  Issue 1

This issue spotlights the Construction Industry. It also covers the appraising of power generation assets for personal property tax, energy transition, merits of an asset-based approach to valuing businesses, scope of work, and a jet aircraft analysis.
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Industry Spotlight

Industry Spotlight: Construction

This issue spotlights the construction industry and features three articles covering extended lead time for supply chains, identifying heavy equipment and serial number locations and an update on ASA's Normal Useful Life Study.

Supply Chain, Extended Lead Times

This article looks at the current market conditions for construction equipment, discusses the value drivers and where the market is headed.
PAGE 14 Joe Santora, ASA

Update to Identifying Heavy Equipment and Serial Number Locations

This article explains why serial numbers are critical in the identification of heavy equipment and provides guidance in finding and verifying serial numbers during an inspection.
PAGE 16 Brad Hartsburg, ASA, CPPA, CSA

Estimated Normal Useful Life Study: Refreshed Format and a Sample of Data Specific to the Construction Industry

An update of the Estimated Normal Useful Life Study prepared by the MTS Committee is currently in process. This article, which discusses the history of the study and guiding principles of the update process, also includes a sample compilation.
PAGE 22 Ryan Kinahan, ASA, CPA and Achin Chugh, ASA

Articles from this Issue

Letter from the CEO: Trending Upward

Spotlighting updates from ASA Headquarters.
PAGE 7 Johnnie White, MBA, CAE, CMP

Letter from the President

A special note from the ASA International President.
PAGE 8 David Crick, ASA

Letter from the Discipline Governors

Important information and updates from MTS Discipline Governors.
PAGE 9 John Mathe, ASA and Sam Shapiro, ASA

Letter from the MTS Committee Chair

News from ASA’s Machinery and Technical Specialties Committee.
PAGE 11 Bill Engel, ASA

Appraising Power Generation Assets for Personal Property Tax

This article discusses the nuances related to performing appraisals for personal property tax purposes in the power generation industry.
PAGE 27 J. Fernando Sosa, ASA, MRICS

Report Writing from Good to Great: Writing the Appraisal Story

This article is the first in a series of articles on report writing. The series assumes a working knowledge of USPAP and investigates Competency and Scope of Work rules as well as the Standards rules 7 & 8.
PAGE 42 Jack Young, ASA, CPA

Beyond Economics: Energy Transition III – Australia's Hydrogen Dream

Hydrogen has garnered significant attention in Australia and abroad as a future fuel in a decarbonised world.
PAGE 49 Vivek Dhar, CBA

Iowa-type Survivor Curves and Estimating Remaining Useful Life

This article discusses how the use of survivor curves can provide an analytical framework for estimating asset life characteristics and consequently play an important role in the development of value estimates.
PAGE 63 Richard K. Ellsworth, PE, ASA, CFA, CCP

Merits of an Asset-Based Approach to Valuing Businesses

This article will discuss the rationale for the asset-based approach to valuing businesses and explore the merits and potential drawbacks of asset-based valuations.
PAGE 69 Suzette Clingerman, ASA and Munish Mohendroo, ASA, CBV, CMA, MBA

Appraising Yachts

This article will discuss some of the resources used and challenges faced by those that appraise yachts.
PAGE 72 Stephen Knox, ASA

Scope of Work: Identify the Appraisal Problem with Intended Use and Intended User

In the context of elements of the appraisal problem, this article explains the critical importance of intended use/user.
PAGE 76 Karen Milan, ASA

End of Life Business – Jet Aircraft: An Analysis

Acknowledging the complexity of Benefit to Cost analysis, this article focuses on the process of developing the value of an EOLA from new-delivery to scrap as compared to the expected residual value over a 20-year period.
PAGE 79 Jeremy R.C. Cox, NSCA, ASA