Multifactor Productivity Trends in Manufacturing News Release


For release 10:00 a.m. (EDT) Wednesday, July 12, 2017	USDL-17-0960
Technical information:	(202) 691-5606 •  mfp@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902 •  PressOffice@bls.gov

MULTIFACTOR PRODUCTIVITY TRENDS IN MANUFACTURING - 2015

Manufacturing sector multifactor productivity decreased at a 2.8-percent
annual rate in 2015, the U.S. Bureau of Labor Statistics reported today.
(See chart 1, table A.) The 2015 decline was the largest decline since 
2012 and reflected a 1.2-percent increase in sectoral output and a 4.1-percent
increase in combined inputs. The decrease in multifactor productivity
followed a 0.9-percent increase in 2014.

Multifactor productivity is calculated by dividing an index of real sectoral
output by an index of combined units of labor input, capital services, and 
intermediate inputs. Multifactor productivity annual measures differ from 
BLS quarterly labor productivity or output per hour measures because the 
former also includes information on capital services, shifts in the 
composition of the workforce, and intermediate inputs. 
Durable manufacturing sector multifactor productivity decreased at a 
2.4-percent annual rate in 2015 following a 0.1-percent decrease in 
2014. Nondurable manufacturing sector multifactor productivity decreased
at a 2.7-percent annual rate in 2015, following a 1.5-percent increase in
2014. (See table 3.)

Methodology Change to BLS Productivity Measures
A methodology change has been implemented with the release of these data. 
This change will also impact BLS multifactor productivity trends for detailed 
industries, scheduled for release July 20, 2017. BLS has updated the way 
intrasectoral transactions and labor composition are estimated. More 
information about these changes can be found shortly at 
www.bls.gov/mfp/sectoraloutputrevisions.htm.

Among the 18 manufacturing industries, half experienced increases in 
multifactor productivity in 2015. Primary metals and computer electronic 
products industries showed the largest gains in multifactor productivity.
The decline in multifactor productivity for the manufacturing sector was 
led by a decline in multifactor productivity in the chemical products and 
transportation equipment industries. Sectoral output increased in 61 
percent of industries and combined inputs increased in 56 percent of 
industries in 2015 (See chart 2, table 3.) 

Trends in the manufacturing sector

Manufacturing sector output growth decelerated in 2015 with an annual
increase of 1.2 percent compared to the 1.6 percent rate in 2014. In 2015,
the 4.1-percent growth in combined inputs accelerated from the 0.7-percent
growth experienced in 2014, driven by a 7.3-percent growth in materials 
and a 5.8-percent growth in purchased business services. (See table 1.) 

Multifactor productivity in the manufacturing sector grew at an average 
annual rate of 0.8 percent from 1987 to 2015 with sectoral output 
increasing at an average annual rate of 1.7 percent, faster than the 
0.9-percent average annual rate of increase in combined inputs. During
the same period, labor productivity grew at an average annual rate of 
2.9 percent. (See table A.) Of the 2.9-percent average annual increase 
in labor productivity, multifactor productivity contributed 0.8 percent,
capital intensity contributed 0.8 percent, intermediate inputs intensity
contributed 1.2 percent, and labor composition contributed 0.2 percent. 
(See table B.)

For the most recent 2007-15 period, multifactor productivity declined at 
a 0.6-percent average annual rate as compared to the 1.7-percent average
annual rate of increase experienced in the 2000-07 period. (See table A.)
Sectoral output decreased at a 0.4-percent annual average rate and 
combined inputs rose at a 0.2-percent annual average rate over the 
2007-15 period.

Revised measures

The difference between revised and previous productivity measures and 
related data in the manufacturing, durable manufacturing, and nondurable
manufacturing sectors are displayed in table C. The revisions were a 
result of changes to BLS methodology for estimating intrasectoral 
transactions and labor composition, as well as revisions to the National
Income and Product Accounts (NIPA) released on January 27, 2017 and the
Gross Domestic Product by Industry data released on November 2, 2016. 
More information about the methodology change can be found shortly at
www.bls.gov/mfp/sectoraloutputrevisions.htm.

The combined impact of these revisions over the 1987-2014 period resulted
in a 0.1 percentage point upward revision to multifactor productivity in 
nondurable manufacturing, with multifactor productivity in manufacturing 
and durable manufacturing unchanged.  

In 2014, multifactor productivity in the manufacturing sector was 
revised upward 1.9 percent, largely due to a downward revision in combined 
inputs. Multifactor productivity was revised upward 2.4 percent in the 
durable manufacturing sector and 1.0 percent in the nondurable manufacturing
sector. In 2013, multifactor productivity and related measures in the 
manufacturing, durable manufacturing, and nondurable manufacturing sectors 
also exhibited major revisions.
Table A. Productivity, sectoral output, and inputs in the manufacturing
sector for selected periods, 1987-2015

                                                                               
Compound annual growth rates                                                   
                                                                               
                             1987-  1987-  1990-  1995-  2000-  2007-  2014-
                             2015   1990   1995   2000   2007   2015   2015 
                                                                               
  Productivity                                                                 
                                                                               
     Multifactor              0.8    0.3    1.0    1.8    1.7   -0.6   -2.8 
     productivity1                                                          
     Labor productivity2      2.9    1.8    3.2    4.7    4.3    0.9    0.5 
     Output per unit of      -0.6   -0.8    0.5    0.3   -0.1   -2.1   -1.4 
     capital services                                                       
                                                                               
                                                                               
                                                                               
  Sectoral Output             1.7    1.8    3.2    4.5    1.1   -0.4    1.2 
                                                                               
  Inputs                                                                       
                                                                               
     Combined Inputs3         0.9    1.5    2.2    2.6   -0.6    0.2    4.1 
      Labor input4           -0.6    0.4    0.7    0.3   -2.4   -0.8    1.4 
        Hours                -1.2    0.0    0.0   -0.2   -3.1   -1.3    0.8 
        Labor composition5    0.6    0.4    0.7    0.4    0.7    0.5    0.6 
      Capital Services        2.3    2.7    2.7    4.2    1.3    1.8    2.6 
      Energy                 -0.8    1.9    1.6    6.6   -3.9   -5.1   -8.4 
      Materials               1.5    0.4    3.2    4.3    0.3    0.0    7.3 
      Purchased business      1.5    5.3    3.2    1.3   -0.5    0.9    5.8 
     services                                                               
                                                                               
 1. Output per combined units of labor input, capital services, energy,        
    materials, and purchased business services.                                
 2. Output per hour worked.                                                    
 3. The growth rate of each input is weighted by its share of current dollar   
    costs.                                                                     
 4. Hours at work by age, education, and gender group are weighted by each     
    group's share of total wages.                                              
 5. Ratio of labor input to hours.                                             
                                                                               
Table B. Labor productivity and contributions of capital intensity,   
intermediate inputs intensity, labor composition, and multifactor productivity 
to labor productivity in the manufacturing sector for selected periods
, 1987-2015 

                                                                               
 Compound annual growth rates                                                  
                                                                               
                           1987-  1987-  1990-  1995-  2000-  2007-  2014-
                           2015   1990   1995   2000   2007   2015   2015 
                                                                               
  Labor productivity1       2.9    1.8    3.2    4.7    4.3    0.9    0.5 
                                                                          
                                                                          
                                                                               
    Contribution of         0.8    0.5    0.5    0.9    0.9    0.7    0.5 
    Capital Intensity2                                                    
                                                                          
                                                                          
                                                                               
       Information          0.1    0.1    0.1    0.2    0.1    0.0    0.0 
       processing                                                         
       equipment                                                          
       intensity3                                                         
                                                                          
                                                                          
                                                                               
       Research and         0.3    0.2    0.1    0.2    0.4    0.3    0.2 
       Development                                                        
       intensity4                                                         
                                                                          
                                                                          
                                                                               
       All Other            0.1    0.1    0.1    0.2    0.0    0.0    0.0 
       intellectual                                                       
       property products                                                  
       intensity5                                                         
                                                                          
                                                                          
                                                                               
       All other capital    0.3    0.2    0.2    0.3    0.5    0.3    0.2 
       services intensity                                                 
                                                                          
                                                                          
                                                                               
    Contribution of         1.2    0.9    1.5    1.7    1.4    0.7    2.7 
    Intermediate Inputs                                                   
    Intensity6                                                            
                                                                          
                                                                          
                                                                               
       Energy intensity7    0.0    0.1    0.0    0.2    0.0   -0.1   -0.2 
                                                                          
                                                                          
                                                                               
       Materials            0.8    0.1    0.9    1.3    1.0    0.4    2.1 
       intensity8                                                         
                                                                          
                                                                          
                                                                               
       Purchased business   0.4    0.7    0.5    0.2    0.5    0.3    0.8 
       services                                                           
       intensity9                                                         
                                                                          
                                                                          
                                                                               
    Contribution of         0.2    0.1    0.2    0.1    0.2    0.1    0.1 
    labor composition10                                                   
                                                                          
                                                                          
                                                                               
    Multifactor             0.8    0.3    1.0    1.8    1.7   -0.6   -2.8 
    productivity11                                                        
                                                                          
                                                                          
                                                                               
 1. Output per hour worked.                                                    
 2. Capital services per hour multiplied by capital's share of current dollar  
    costs.                                                                     
 3. Information processing equipment per hour multiplied by its share of       
    current dollar costs.                                                      
 4. Research and development per hour multiplied by its share of current       
    dollar costs.                                                              
 5. Software and artistic originals per hour multiplied by its share of        
    current dollar costs.                                                      
 6. Intermediate inputs per hour multiplied by intermediate inputs' share of   
    current dollar costs.                                                      
 7. Energy per hour multiplied by energy’s share of current dollar costs.      
 8. Materials per hour multiplied by materials’ share of current dollar costs. 
 9. Purchased business services per hour multiplied by purchased business'     
    services' share of current dollar costs.                                   
 10. Labor composition multiplied by labor’s share of current dollar costs.    
 11. Output per combined units of labor input, capital services, energy,       
     materials, and purchased business services.                               
                                                                               
Table C. Difference between revised and previous multifactor productivity  
and related measures, for selected periods 1987-2014

                                                                                     
Average annual growth                                                                
                                                                                     
                                                                               
                                1987- 1987- 1990- 1995- 2000- 2007- 2012- 2013-
                                2014  1990  1995  2000  2007  2014  2013  2014 
                                                                                     
  Manufacturing                                                                      
                                                                                     
   Multifactor productivity1      0.0   0.1  -0.1  -0.1   0.0   0.2   0.0   1.9
   Labor productivity2           -0.4  -0.1  -0.1  -0.2  -0.3  -1.0   0.9   0.0
   Sectoral Output               -0.5   0.0   0.0  -0.2  -0.4  -1.0   0.8  -0.1
   Combined Inputs3              -0.5  -0.1   0.1  -0.1  -0.4  -1.2   0.9  -1.9
   Capital Services              -0.1   0.0   0.0   0.0   0.0   0.0   0.0  -0.1
   Labor input4                   0.0  -0.1   0.1   0.0  -0.1   0.0  -0.1   0.4
   Energy                        -0.4   0.0   0.0   0.0   0.0  -1.2   0.0  -8.5
   Materials                     -1.1   0.3   0.1  -0.9  -0.7  -3.0   2.6  -2.7
   Purchased business services   -0.2  -0.1   0.0  -0.1   0.1  -0.9  -1.4  -5.1
                                                                                     
  Durable Manufacturing                                                              
                                                                                     
   Multifactor productivity1      0.0  -0.1  -0.2  -0.1   0.0   0.3  -0.6   2.4
   Labor productivity2           -0.4  -0.1   0.0  -0.4   0.0  -0.9   0.9   0.2
   Sectoral Output               -0.4   0.0   0.0  -0.3   0.0  -0.9   0.9   0.0
   Combined Inputs3              -0.4   0.0   0.1  -0.1  -0.1  -1.2   1.5  -2.6
   Capital Services               0.0  -0.1  -0.1  -0.1   0.0   0.0  -0.2  -0.4
   Labor input4                   0.0   0.0   0.1  -0.1   0.0   0.0  -0.2   0.4
   Energy                        -0.2   0.0   0.0   0.0   0.0  -0.6   1.5  -6.2
   Materials                     -1.0   0.1   0.0  -0.6  -0.5  -3.0   4.9  -4.7
   Purchased business services   -0.2   0.0   0.0  -0.1   0.1  -0.6   0.2  -4.7
                                                                                     
  NonDurable Manufacturing                                                           
                                                                                     
   Multifactor productivity1      0.1   0.1   0.0   0.0   0.0   0.2   0.4   1.0
   Labor productivity2           -0.2   0.0   0.0  -0.2  -0.1  -0.7   0.4   0.0
   Sectoral Output               -0.3   0.0   0.0  -0.2  -0.1  -0.6   0.3   0.1
   Combined Inputs3              -0.3   0.0   0.0  -0.2  -0.1  -0.9  -0.1  -0.9
   Capital Services               0.0   0.0   0.0   0.1   0.0   0.1   0.1   0.1
   Labor input4                   0.0  -0.3   0.0   0.0  -0.2   0.2   0.3   0.2
   Energy                        -0.4   0.0  -0.1   0.0   0.0  -1.6  -0.8  -9.8
   Materials                     -0.5   0.1   0.1  -0.6  -0.1  -1.4   0.4  -0.3
   Purchased business services   -0.4  -0.1   0.0   0.0   0.0  -1.3  -3.3  -5.7
                                                                                     
 1. Output per combined units of hours, capital services, energy, materials          
   ,and purchased business services.                                                 
 2. The growth rate of each input is weighted by its share of current dollar
    costs.  
 3. Hours at work by age, education, and gender group, weighted by each              
    group’s share of total wages.                                                    
                                                                                     
                                                 
                                                                                     

Technical Notes

BLS includes a measure of the effects of
changes in the composition of the work force for manufacturing sectors
and industries. Labor input in manufacturing sectors and NAICS industry
groups is obtained by chained superlative Tornqvist aggregation of the
hours at work, classified by age, education, and gender with weights 
determined by each group’s share of total wages. The labor composition
index estimates the effect of shifts in the age, education, and gender 
composition of the work force on hours worked. 

Capital Services 

Capital services are the services derived from the stock of physical assets
and intellectual property assets. There are 90 asset types for fixed business
equipment, structures, inventories, land, and intellectual property products.
The aggregate capital services measures are obtained by Tornqvist aggregation 
of the capital stocks for each asset type within each of the eighteen 
manufacturing NAICS industry groupings using estimated rental prices for 
each asset type. Each rental price reflects the nominal rate of return to 
all assets within the industry and rates of economic depreciation and 
revaluation for the specific asset; rental prices are adjusted for the effects
of taxes. Data on investment for fixed assets are obtained from BEA. Data on 
inventories are estimated using data from BEA and additional information from
IRS Corporation Income Returns. Data for land in the farm sector are obtained
from USDA. Nonfarm industry detail for land is based on IRS book value data.
Current-dollar value-added data, obtained from BEA, are used in estimating 
capital rental prices.

Labor Input 

Labor input in manufacturing sectors and industries is obtained by chained 
superlative Tornqvist aggregation of the hours at work, classified by age,
education, and gender with weights determined by each group’s share of total 
wages. The labor composition index estimates the effect of shifts in the age,
education, and gender composition of the work force on hours worked. Hours at
work data reflect Productivity and Costs data as of the February 2, 2017 
“Productivity and Costs” news release (USDL-17-0140). The growth rate of labor
composition is defined as the difference between the growth rate of weighted 
labor input and the growth rate of the hours.

The growth rate of labor composition in manufacturing may be underestimated 
due to limitations in the source data. The education proxy does not include 
training certifications and licensing. The proxy only includes number of years
of schooling.

Additional information concerning data sources and methods of measuring labor 
composition can be found in “Changes in the Composition of Labor for BLS 
Multifactor Productivity Measures, 2014” (www.bls.gov/mfp/mprlabor.pdf).

Intermediate Inputs 

In manufacturing, intermediate inputs consist of energy, materials, and 
purchased business services, and represent a large share of production costs.
Research has shown that substitution among inputs, including intermediate 
inputs, affects productivity change. Therefore, it is important to account 
for intermediate inputs in productivity measures at the industry level. In 
contrast, the more aggregate productivity measures compare "value-added"
output with two classes of inputs, capital and labor. Because of these 
differences in concepts and methodology, productivity change in manufacturing
cannot be directly compared with changes in private business or private 
nonfarm business.  

Data on intermediate inputs are obtained from BEA based on BEA annual 
input-output tables. Tornqvist indexes of each of these three input classes 
are derived at the three-digit NAICS level and then aggregated to the 
manufacturing sectors. Materials inputs are adjusted to exclude transactions
between establishments within the same sector.

Combined Inputs 
The five input indexes (capital services, labor, energy, materials, and 
purchased business services) are combined using chained superlative Tornqvist 
aggregation, applying weights that represent each component's share of total
costs. Total costs are defined as the current dollar value of manufacturing 
sectoral output. Most taxes on production and imports, such as excise taxes,
are excluded from costs; however, property and motor vehicle taxes remain in
total costs. 

Capital Intensity

Capital intensity is the ratio of capital services to hours worked in the 
production process. The higher the capital to hours ratio, the more capital
intensive the production process is. 

In a production process, profit maximizing/cost-minimizing firms adjust the 
factor proportions of capital and labor if the price of one factor falls 
relative to the price of the other factor; there would be a tendency for 
the firms to substitute the less expensive factor for the more expensive 
one. In the short run, changes in hours worked are more variable than changes
in capital services. Changes in hours worked in business cycles can result
in volatility of the capital intensity ratio over short periods of time. In
the long run an increase in wages relative to the price of capital will 
induce the firm to substitute capital for labor, resulting in an increase
in capital intensity.

Rising labor costs are, in fact, an incentive for firms to introduce 
automated production processes.
Industry estimates of capital to hours ratios can be obtained at 
http://www.bls.gov/mfp/mprdload.htm.   

Sectoral Output 

The output concept used for multifactor productivity in manufacturing is 
“sectoral output”. Sectoral output equals gross output (sales, receipts, 
and other operating income, plus commodity taxes plus changes in 
inventories), excluding transactions between establishments within the 
same sector. In contrast, the output concept used for private business and
private nonfarm business is “real value-added”. Real value-added output in
private business equals gross domestic product less general government, 
government enterprises, private households (including the rental value of 
owner-occupied real estate), and non-profit institutions. Real value-added 
output excludes intermediate transactions between businesses.

The output index for manufacturing is constructed using a chained superlative
index (Tornqvist) of three-digit NAICS industry outputs. Industry output is 
measured as sectoral output, the total value of goods and services leaving 
the industry. The indexes of industry output are calculated with the Tornqvist
index formula. This index formula aggregates the growth rates of the various 
industry outputs between two periods, using their relative shares in industry
value of production averaged over the two periods as weights. BLS industry 
output measures for manufacturing industries are constructed using data from 
the economic censuses and annual surveys of the Bureau of the Census, U.S. 
Department of Commerce, together with information on price changes, primarily
from BLS. 

Multifactor Productivity 

The manufacturing multifactor productivity measures describe the relationship
between output in real terms and the inputs involved in its production. 
Multifactor productivity measures are not intended to capture the specific 
contributions of labor, capital, or intermediate inputs. Rather, they are 
designed to measure the joint influences on economic growth of technological 
change, efficiency improvements, returns to scale, reallocation of resources
and other factors of economic growth, allowing for the effects of capital, 
labor, and intermediate inputs. The multifactor productivity indexes are 
derived by dividing an output index by an index of the combined inputs of 
labor, capital services, energy, non-energy materials, and purchased business 
services.


Other information 

Comprehensive tables containing more detailed data than that which is
published in this press release are available upon request at 202-691-5606 
or at http://www.bls.gov/mfp/mprdload.htm. More detailed information on
methods, limitations, and data sources of capital and labor are provided in
BLS Bulletin 2178 (September 1983), Trends in Multifactor Productivity, 
1948-81 and on the BLS Multifactor Productivity website under the title
“Technical Information About the BLS Multifactor Productivity Measures” for 
Major Sectors and 18 NAICS 3-digit Manufacturing Industries at 
http://www.bls.gov/mfp/mprtech.pdf. General information is available on
the BLS Multifactor Productivity website at 
http://www.bls.gov/mfp/mprover.htm. Additional data not contained in the 
release can be obtained in print or at http://www.bls.gov/mfp. A number of 
comprehensive tables set up as zip files can be obtained at
http://www.bls.gov/mfp/mprdload.htm. Methods for measuring manufacturing 
multifactor productivity are discussed in the July 1995 issue of the Monthly 
Labor Review, "Measurement of productivity growth in U.S. 
manufacturing”. See http://www.bls.gov/mfp/mprgul95.pdf.  

Table 1. Manufacturing sector: productivity and related measures for the       
  1987-2015 period                                           

Annual percent change from previous year                                       
                                                                               
     Productivity                Inputs                                        
                                                                               
             Output                                                            
      Multi- per                    Com-                               Pur-    
      factor unit             Sec-  bined           Capi-              chased  
      pro-   of       Labor   toral units           tal                busi-   
      ducti- capital  produc- out-  of all          Ser-         Mate- ness    
 Year vity1  services tivity2 put   Inputs3 Labor4  vices Energy rials services
 1988   2.4    1.7      2.1     4.1   1.6     2.2     2.3   4.2   -2.7   8.6   
 1989  -0.9   -1.6     -0.2     1.1   1.9     1.9     2.7  -0.4   -0.2   5.9   
 1990  -0.7   -2.5      3.7     0.4   1.1    -2.9     3.0   1.9    4.1   1.6   
 1991  -1.0   -4.2      2.1    -1.8  -0.8    -2.7     2.6  -0.3   -0.9  -0.6   
 1992  -0.5    2.3      5.8     4.9   5.5    -1.1     2.5  -1.1   15.6   7.4   
 1993   2.2    1.1      2.4     3.6   1.3     2.3     2.4   3.3   -0.3   0.6   
 1994   2.5    2.7      2.9     5.3   2.7     2.9     2.5   3.6    2.0   3.9   
 1995   1.7    0.7      3.0     4.1   2.4     2.1     3.4   2.7    0.5   4.7   
 1996   0.2    0.1      4.9     4.2   4.0     0.0     4.2  -2.8   11.9  -0.6   
 1997   2.6    2.0      4.4     6.9   4.1     2.5     4.7  -1.9    6.1   3.8   
 1998   1.2   -0.1      4.5     4.7   3.5     1.1     4.8   4.7    4.3   4.9   
 1999   1.7    0.2      5.4     4.2   2.4    -0.9     4.0  23.7    4.6   0.6   
 2000   3.6   -0.7      4.1     2.5  -1.0    -1.2     3.3  11.6   -4.5  -2.1   
 2001  -1.8   -6.1      2.7    -4.1  -2.3    -5.6     2.1  14.4   -6.9   2.7   
 2002   2.3   -0.8      7.9     0.4  -1.9    -6.0     1.3 -24.4    4.0  -1.2   
 2003   5.1    0.4      6.2     1.0  -3.8    -4.1     0.6 -12.3   -5.2  -5.4   
 2004   2.5    2.0      2.9     2.2  -0.3     0.3     0.2  -5.1    2.7  -6.1   
 2005   0.7    2.9      4.9     4.0   3.2    -1.0     1.0   7.0    6.6   6.9   
 2006   2.2    0.2      1.2     1.6  -0.5     1.1     1.4  -7.6   -1.5  -3.0   
 2007   1.0    0.8      4.6     3.0   1.9    -1.2     2.2   6.6    3.3   3.0   
 2008   0.3   -7.5     -0.8    -4.8  -5.1    -3.3     3.0  -1.0   -9.9  -8.8   
 2009  -2.9  -13.1      1.4   -12.0  -9.4   -11.4     1.3 -27.4  -15.9  -3.1   
 2010   3.8    5.2      5.7     6.1   2.1     0.5     0.8  -2.7    4.6   2.9   
 2011  -1.0    1.6      0.6     2.7   3.8     1.7     1.1   8.6    7.9   1.4   
 2012  -2.9    0.2     -0.7     1.5   4.6     2.5     1.3   5.5    6.6   8.0   
 2013   0.1   -0.1      0.9     1.8   1.7     1.5     1.9  -0.3    1.6   2.2   
 2014   0.9   -0.8      0.0     1.6   0.7     1.0     2.4 -10.1    0.6  -0.5   
 2015  -2.8   -1.4      0.5     1.2   4.1     1.4     2.6  -8.4    7.3   5.8   
                                                                               
1. Output per combined units of labor input, capital services, energy, material
   and purchased business services.                                            
2. Output per hour worked.                                                     
3. The growth rate of each input is weighted by its share of current dollar    
   cost.                                                                       
4. Hours at work by age, education, and gender group, weighted by each group’s 
   share of total wages.                                                       
                                                                               
Source:  The Bureau of Labor Statistics (BLS) develops productivity measures   
         using output data published by the Bureau of the Census, U.S.         
         Department of Commerce, and modified by BLS. Compensation and hours   
         data are from the BLS. Capital measures are based on data supplied    
         by the BEA, U.S. Department of Commerce. See also Technical Notes in  
         this release.                                                         
                                                                               

Table 2. Manufacturing sector: indexes of productivity and related measures,   
1987-2015

Indexes 2009=100                                                               
                                                                               
      Productivity                  Inputs                                     
                                                                               
             Output                                                           
      Multi- per                    Com-                              Pur-    
      factor unit             Sec-  bined          Capi-              chased  
      pro-   of       Labor   toral units          tal                busi-   
      ducti- capital  produc- out-  of all         Ser-         Mate- ness    
 Year vity1  services tivity2 put   Inputs3 Labor4 vices Energy rials services
 1987   78.7   123.8     47.5  71.7    91.2  130.2  57.9  115.9  88.0    80.7 
 1988   80.6   125.9     48.5  74.6    92.6  133.0  59.3  120.8  85.7    87.7 
 1989   79.9   123.9     48.4  75.4    94.4  135.6  60.9  120.3  85.5    92.9 
 1990   79.3   120.7     50.2  75.7    95.5  131.7  62.7  122.6  89.1    94.3 
 1991   78.5   115.6     51.3  74.4    94.7  128.2  64.3  122.2  88.3    93.7 
 1992   78.1   118.3     54.2  78.0    99.9  126.7  65.9  120.9 102.1   100.7 
 1993   79.8   119.7     55.5  80.8   101.2  129.6  67.5  125.0 101.8   101.3 
 1994   81.8   122.9     57.1  85.1   104.0  133.4  69.2  129.5 103.8   105.2 
 1995   83.2   123.7     58.8  88.5   106.5  136.3  71.6  133.0 104.4   110.2 
 1996   83.3   123.8     61.7  92.3   110.7  136.3  74.5  129.2 116.8   109.5 
 1997   85.5   126.3     64.4  98.6   115.3  139.7  78.1  126.7 123.9   113.6 
 1998   86.5   126.2     67.3 103.3   119.4  141.1  81.8  132.7 129.3   119.2 
 1999   88.0   126.4     70.9 107.6   122.2  139.9  85.1  164.1 135.2   119.9 
 2000   91.1   125.5     73.9 110.3   121.0  138.2  87.9  183.1 129.1   117.5 
 2001   89.5   117.9     75.9 105.8   118.2  130.6  89.7  209.5 120.2   120.7 
 2002   91.6   116.9     81.9 106.2   116.0  122.7  90.9  158.5 124.9   119.3 
 2003   96.2   117.4     87.0 107.3   111.6  117.7  91.4  139.0 118.4   112.8 
 2004   98.6   119.8     89.5 109.7   111.2  118.0  91.6  131.9 121.6   106.0 
 2005   99.4   123.3     93.9 114.0   114.7  116.8  92.5  141.2 129.7   113.3 
 2006  101.6   123.5     95.1 115.9   114.1  118.1  93.8  130.5 127.8   109.9 
 2007  102.6   124.5     99.4 119.3   116.3  116.7  95.9  139.1 132.0   113.2 
 2008  103.0   115.1     98.6 113.6   110.3  112.9  98.7  137.7 118.9   103.2 
 2009  100.0   100.0    100.0 100.0   100.0  100.0 100.0  100.0 100.0   100.0 
 2010  103.8   105.2    105.7 106.1   102.1  100.5 100.8   97.3 104.6   102.9 
 2011  102.8   106.8    106.3 108.9   106.0  102.3 101.9  105.7 112.8   104.4 
 2012   99.7   107.0    105.6 110.5   110.8  104.8 103.2  111.4 120.3   112.7 
 2013   99.8   106.9    106.5 112.5   112.7  106.4 105.2  111.1 122.2   115.2 
 2014  100.7   106.1    106.5 114.2   113.5  107.5 107.7   99.8 122.9   114.6 
 2015   97.8   104.6    107.0 115.6   118.2  109.0 110.5   91.4 131.9   121.2 
                                                                               
1. Output per combined units of labor input, capital services, energy, material
   and purchased business services.                                            
2. Output per hour worked.                                                     
3. The growth rate of each input is weighted by its share of current dollar    
   cost.                                                                       
4. Hours at work by age, education, and gender group, weighted by each group’s 
   share of total wages.                                                       
                                                                               
Source:  The Bureau of Labor Statistics (BLS) develops productivity measures   
         using output data published by the Bureau of the Census, U.S.         
         Department of Commerce, and modified by BLS. Compensation and hours   
         data are from the BLS. Capital measures are based on data supplied    
         by the BEA, U.S. Department of Commerce. See also Technical Notes in  
         this release.                                                         
                                                                               

Table 3. Multifactor productivity measures for manufacturing industries   
         in selected periods, 1987-2015                                 

                                                                          
Compound annual growth rates                                              
                                                                          
                         1987-  1987-  1990-  1995-  2000-  2007-  2014-
                         2015   1990   1995   2000   2007   2015   2015 
                                                                        
  Manufacturing           0.8    0.3    1.0    1.8    1.7   -0.6   -2.8 
                                                                        
                                                                        
  Nondurable             -0.1   -0.4    0.4   -0.2    0.6   -0.8   -2.7 
    manufacturing                                                       
  Food, beverage, and    -0.3   -1.5    1.3   -1.6    0.6   -0.8   -1.9 
    tobacco products                                                    
  Textile mills and       0.7    1.2    0.5    1.4    1.0    0.0   -1.1 
    textile product                                                     
    mills                                                               
  Apparel, leather, and  -1.1    0.2    2.4    1.0    1.8   -7.1   -3.0 
    allied products                                                     
  Paper products          0.0   -0.2   -0.2    0.0    0.6   -0.3    0.2 
  Printing and related    0.7    0.3   -0.7    0.7    2.6    0.0   -3.7 
    support activities                                                  
  Petroleum and coal      1.1   -1.1    1.7    3.1    0.3    1.2    1.5 
    products                                                            
  Chemical products      -1.0   -0.7   -1.1   -0.4    0.7   -2.9   -7.8 
  Plastics and rubber     0.3    0.7    0.2    1.3    0.2   -0.3    1.3 
    products                                                            
                                                                        
                                                                        
  Durable manufacturing   1.5    0.8    1.3    3.1    2.5   -0.2   -2.4 
  Wood products           0.0    1.4   -1.7   -0.6    0.9    0.2    1.3 
  Nonmetallic mineral     0.2    0.2    0.5    0.4   -0.1    0.0    0.5 
    products                                                            
  Primary metals          0.5    1.1   -0.2    1.2    0.4    0.5    2.5 
  Fabricated metal       -0.3   -0.1    0.7   -0.4    0.6   -1.8   -4.1 
    products                                                            
  Machinery              -0.4    1.0   -2.2   -1.4    1.4   -0.9   -3.5 
  Computer and            7.0    5.0    9.2   14.4    7.1    2.1    1.9 
    electronic products                                                 
  Electrical equipment,  -0.8   -1.9   -2.7   -2.8    1.8   -0.1    0.3 
    appliances, and                                                     
    components                                                          
  Transportation          0.2   -1.5   -0.3    0.3    1.8   -0.4   -4.4 
    equipment                                                           
  Furniture and related  -0.1   -0.7    0.3    0.5    0.2   -0.9    0.5 
    products                                                            
  Miscellaneous           0.4    2.3   -0.7    1.1    0.9   -0.5   -2.1 
    manufacturing                                                       
                                                                        
                                                                        

Last Modified Date: July 12, 2017