M&E Appraisal Associates, Inc. (“M&EAA”) recently appraised the machinery & equipment of a trench shoring & shielding equipment company.
The subject company is a manufacturer and supplier of trench shoring & shielding systems. These systems include trench boxes, vertical hydraulic shores, excavation support equipment, etc.
Trench shoring is the process of bracing the walls of a trench to prevent collapse and cave-ins. Several methods can be used to shore up a trench. Trench shields (also called trench boxes or trench sheets) are steel or aluminum structures used for protecting utility workers while performing their duties within a trench and avoid cave-ins.
The specific assets appraised by M&EAA included steel trench shields, steel manhole shields, trench system components, slide rails, steel plates, I-beams, hydraulic shores and other related support items. M&EAA has over 25 years experience providing trench shoring equipment appraisals and trench shielding equipment appraisals.
As there is limited comparable sale information available, the appraiser relied primarily on the cost approach in order to value the subject items.
The cost approach involves the use of the current replacement cost new of an item, less all forms of depreciation to determine the value of a subject property. Depreciation in terms of the cost approach includes physical deterioration, functional obsolescence, and economic obsolescence.
Appraisal conclusions: Cave-ins are the most feared hazard workers in the underground utility industry face while working inside an excavation four feet or more in depth. Prevention methods such as using adequate shoring systems & shielding systems are critical. An upward trend in underground utility projects (new and repair/replacement) coupled with increasingly stringent OSHA requirements results in high demand for trench shoring & trench shielding equipment. Concluded values were extremely favorable due to the mix, current market demand, good condition, and long inherent life of the subject items.