MTS Journal

2022  •  Volume 38  •  Issue 4

This issue spotlights the Aircraft Industry. It also discusses Greenfield replacement cost models, economic obsolescence, metal laser cutting, wireless communications, wastewater treatment inspections, and benchmarking the world’s oldest green battery.
Download PDF

Industry Spotlight

Industry Spotlight - Aircraft

This issue spotlights the aircraft industry and features three articles covering different topics on aircraft appraisals - appraising helicopters, appraising specialized law enforcement equipment and trends in the business jet industry.

Appraising Commercial Helicopters

Unlike a fixed-wing aircraft, the rotary-wing aircraft is extremely versatile, performing a range of essential life-saving roles that standard fixed-wing aircrafts cannot.
PAGE 10 Alastair Fallon, ASA, Commercial Helicopters, IBA Group

We May Not Be Entering a Business Jet “Bubble” Yet – Ascend Values Data Gives Insight: October 2022 Update

This article addresses the question of how current and projected values compare with January 2020 and discusses the question of a bubble in the business jet market.
PAGE 13 Daniel Hall, ASA, Senior Valuation Consultant, Ascend by Cirium

Conducting Appraisals on Aircraft with Specialized Law Enforcement Mission Equipment

Aircraft appraisals are challenging, especially when customized configurations are present. Law enforcement aircraft are even more difficult as they have specialized mission equipment installed which the appraiser has to develop a value for.
PAGE 16 Ed Van Winkle, ASA, Vice President, CNC Technologies Law Enforcement Sales and OEM Projects and Owner, Van Winkle Aviation LLC

Articles from this Issue

ASA CEO Update The ASA Difference—The Power of Peer-to-Peer Marketing

Spotlighting updates from ASA Headquarters.
PAGE 5 Johnnie White, MBA, CAE, CMP, Chief Executive Officer/Executive Vice President, ASA

Letter from the Discipline Governors

Important information and updates from MTS Discipline Governors.
PAGE 6 Sam Shapiro, ASA and Ryan Kinahan, ASA, CPA

Letter from the MTSC Chair and MTS Education Update

News from ASA’s Machinery and Technical Specialties (MTS) Committee and updates on ASA MTS classes, conferences and events.
PAGE 7 Bill Engel, ASA and Rick Ellsworth, PE, ASA, CFA, CCP

Greenfield Replacement Cost Models for Ad Valorem Appraisal of Communication Networks

The replacement cost new (RCN) of building a “greenfield” communication network is often considered when appraising existing networks using the cost approach. The author argues against this stating greenfield models are not comparable substitutes.
PAGE 21 Stephen L. Barreca, ASA Retired, Founder and President, BCRI Valuation Services

Economic Obsolescence: The Rest of the Story

This article completes a presentation begun at the 2022 ASA International Conference focusing on applying the inutility calculation and addresses other tools that can shore up our use of the inutility calculation or potentially calculate overall (EO).
PAGE 27 Douglas Krieser, ASA, Managing Director, Valcon Partners, LTD

Wireless Communications: Local Valuation, On-Site Inventory, and Replacement Cost New Estimates

This article discusses the advantages of conducting on-site inventories and using the cost approach as the primary technique for estimating the fair value (cost basis) of wireless communication sites for tax purposes.
PAGE 33 Gregory P. Popham, Principal, CRED Cell Tower Valuation

Work-Life Balance and the Appraisal Business

A longtime ASA MTS professional considers his workaholic tendencies, shares some work photos and discusses what the research suggests for professionals who want to free themselves from similar patterns and reach a healthier work-life balance.
PAGE 36 Brad Hartsburg, ASA, President, Fortress Machinery Appraisals and Consulting Inc.

Laser Cutting of Metal Today

This article discusses the history of metal cutting lasers, the two major types of metal cutting lasers (CO2 and fiber), and their current value as it relates to market demand.
PAGE 40 Alec Story, ASA, Vice President–Surplus Asset Management, Perfection Global LLC

Navigating a Wastewater Treatment Inspection

This article presents an overview of information helpful to appraisers for inspection purposes and discusses the challenges of accessing costing sources.
PAGE 42 Jeffrey Lank, ASA, Director, Fixed Asset Advisory Service, Kroll and Sam Lynch, Vice President, Fixed Asset Advisory Service, Kroll

Infrastructure Assets, Indirect Costs, and the Cost Approach

This article discusses the consideration of indirect costs when estimating construction costs associated with infrastructure assets.
PAGE 44 Richard K. Ellsworth, ASA, PE, ASA, CFA, CCP

Pumped Storage Hydro: Capital Cost Benchmarking the World’s Oldest Green Battery

This article presents an overview of how PSH works and a discussion of critical economic considerations focused on the importance of benchmarking capital costs in the valuation of PSH as an infrastructure asset.
PAGE 47 Binu Nair, ASA, Associate Vice President, RBSA Advisors