What will each unit cost to make, and where does that put the plant against competitors?
Margins are decided at the unit level. Credence Research builds the cost per ton, unit or kWh from raw materials, energy, labor, maintenance and overheads, then places the project on a cost curve against existing producers, so a new plant's competitive position is clear before it is built.
It matters most in markets where products are similar and the lowest-cost producer sets the price.
Choosing a location
Compare unit costs where energy, labor and feedstock prices differ.
Choosing a process route
Compare unit costs of alternative technologies.
Testing resilience
See how margins hold when raw material prices swing.
Setting prices
Know the floor below which new business loses money.
Producers are ranked by unit cost and sized by capacity. The plant's margin is the gap between its bar and the market price.
Scroll sideways to see the whole figure.
Input prices are often public; how much of each input a process uses, and what competitors pay, usually are not.
| Topic | Public data shows | Still uncertain | How it is tested |
|---|---|---|---|
| Raw materials | Market price series | Contract prices and consumption per unit | Supplier and expert interviews |
| Energy | Published tariffs | Consumption for this process and scale | Process benchmarks |
| Competitor costs | Plant locations and capacities | Their unit costs | Cost modeling from inputs and interviews |
This example is illustrative. It shows how a study could be designed and does not describe a client project.
Clear limits keep the findings honest and the scope easy to price.
Where a decision needs engineering or legal sign-off, the study says so and lists the questions for that review.
Outputs are agreed at scoping; this is a typical set.
Cost per unit by input, with sources and dates.
Use it to see what drives cost.
The project placed against existing producers.
Use it to judge competitive position.
Volume and price at which the plant covers its costs.
Use it to set commercial targets.
Effect of input price changes on margin.
Use it to plan for volatility.
ScopingThe decision, product, capacity, locations and level of study are agreed, along with what is in and out of scope.
Primary and secondary researchAnalysts combine company filings, trade and tariff data, capacity announcements and price series with interviews of producers, buyers, suppliers and industry experts.
ValidationKey figures are cross-checked against at least two independent sources, and every assumption is logged with its source and date.
ModelingDemand, cost and financial models are built in Excel with base, upside and downside cases, so each assumption can be changed and traced.
Analyst review and decision memoA senior analyst reviews the findings, and the study closes with a memo on whether the case holds, the riskiest assumptions and the next steps.
Describe the product, location and capacity you are considering, and the decision the study must support. A short brief is enough to start.
What happens next
An analyst reviews the brief and replies within one business day with scoping questions. A proposal follows with the study scope, deliverables and timeline.
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