APPENDIX 5A. MATERIAL PRICES 

TABLE OF CONTENTS
 

5A.1 INTRODUCTION .................................................................................................. 5A-1
 

5A.2 METHODOLOGY ................................................................................................. 5A-1
 

REFERENCES ......................................................................................................................... 5A-3
 

LIST OF TABLES 

Table 5A.2.1 Baseline 2-lamp F32T8 IS Ballast ...................................................................... 5A-2
 

5A-i 

EERE-2007-BT-STD-0016 COMMENT 25
 

 

APPENDIX 5A. MATERIAL PRICES 

5A.1 INTRODUCTION
 

This appendix presents the results of an analysis to determine how material prices might 

affect the manufacturer selling price of ballasts. 

5A.2 METHODOLOGY 

As discussed in the engineering analysis, preliminary TSD chapter 5, DOE conducted 

teardowns to determine the cost of the bill of materials (BOM) and appropriate direct labor costs 

for certain fluorescent lamp ballasts. The BOMs use material prices from January 2009. DOE 

understands that changes in material prices can affect the ultimate manufacturer selling price. 

Therefore, DOE conducted an analysis to determine how the cost of the BOM would be affected 

if DOE used a 5-year average of material prices instead of the material prices in January 2009. 

For each component type, DOE determined the January 2009 index and a 5-year average index 

(spanning 2004 to 2008) from the Bureau of Labor Statistics Producer Price Indices (PPIs).1 

DOE then evaluated how the January 2009 material costs for ballasts varied from the 5-year 

average price for all ballasts. Including all changes in PPI from the 5-year average, the BOM 

price was affected by 1.4% for the baseline 2-lamp F32T8 ballast as shown in Table 5A.2.1. 

DOE analyzed the percentage difference for all ballasts and found that the BOM ranged from -

0.4% to 2.9% different from the 5-year average. Because these variances are insignificant, DOE 

decided not to incorporate these material price changes in the engineering analysis. 

5A-1 

EERE-2007-BT-STD-0016 COMMENT 25
 

Table 5A.2.1 Baseline 2-lamp F32T8 IS Ballast 

Component Type 

Percentage 

Cost of 

BOM 

January 

2009 PPI 

2004 to 2008 

Average PPI 

Percentage 

change from 

January 2009 to 

5-year Average 

PPI 

Capacitor 14.5% 108.0 109.0 1.0% 

Resistor 2.0% 172.4 166.2 -3.7% 

Diode* 6.4% 102.6 107.8 4.8% 

Transistor* 12.8% 66.4 72.7 8.6% 

Analog† 3.4% 63.6 81.7 22.2% 

Printed Circuit Board 6.3% 103.0 101.4 -1.6% 

Magnetic 26.8% 171.2 152.9 -11.9% 

Connector 9.3% 222.6 256.9 13.3% 

Cold-Rolled Sheets 11.0% 170.4 191.0 10.8% 

Fuse 1.0% N/A N/A N/A 

Plastics & Elastomers 4.8% N/A N/A N/A 

Other 1.7% N/A N/A N/A 

Total 100% 1.4% 

*2004 to 2008 Average PPI does not include the December 2008 price. 

†

Price represents a 3.5 year average as data previous to June 2005 is not available. 

N/A signifies that the PPI for that material was not available 

5A-2 

EERE-2007-BT-STD-0016 COMMENT 25
 

REFERENCES 

1 U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Indices. (Last accessed June 

30, 2009). <http://www.bls.gov/ppi>. 

5A-3 

EERE-2007-BT-STD-0016 COMMENT 25