Related BLS programs | Related articles Productivity shows a decline in automotive repair shops
March, 1988, Vol. 111, No. 4
Related BLS programs | Related articles
Productivity shows a decline in automotive repair shopsJohn G. Olsen and Richard B. Carnes
Output per hour of all persons1 in the automotive repair shop industry2 decreased at an average annual rate of 1.2 percent between 1972 and 1986. During this period, productivity in the private nonfarm business sector rose at an annual rate of 0.8 percent. The overall productivity decline reflects a 3.0-percent average annual increase in output and a corresponding larger growth in all person hours of 4.3 percent. (See table 1.)
Despite increased efficiency in some specialty repair shops, overall productivity for the automotive repair ship industry has declined since 1972. Factors contributing to this decline include a large influx of new establishments and workers in the industry, a shortage of adequately trained mechanics, the introduction of more complex cars and trucks, as well as the effect of several recessions in the U.S. economy during the 1972-86 period.
The output per hour rates for automotive repair shops varied substantially from year to year. Since 1972, annual increases in productivity have occurred in 6 years, ranging from 0.5 to 8.7 percent. Declines in productivity occurred in 8 years, the largest in 1982 when output per hour dropped 6.3 percent.
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Footnotes1 All average rates of change are based on the linear least squares trends of the logarithms of the index numbers.
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