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Historical, technical USDL 06-2040
information: (202) 691-5606 For Release: 10:00 AM EST
Media contact: (202) 691-5902 December 6, 2006
MULTIFACTOR PRODUCTIVITY TRENDS IN MANUFACTURING, 2002, 2003 AND 2004
The Bureau of Labor Statistics of the U.S. Department of Labor today reported
multifactor productivity data�output per unit of combined inputs�for the
manufacturing sector and for durable goods, nondurable goods, and three-digit
(NAICS) manufacturing industries through the year 2004.
The annual rates of multifactor productivity change in manufacturing were:
2001-02 2002-03 2003-04
Manufacturing 3.9 4.0 -1.0
Durable manufacturing 4.3 4.5 -1.0
Nondurable manufacturing 3.0 3.1 -0.9
In all three sectors, manufacturing, durable manufacturing, and nondurable
manufacturing, multifactor productivity growth was just slightly faster in
2003 than in 2002. Multifactor productivity fell in all three sectors in
2004. The 2001-02, 2002-3 and 2003-4 annual changes are summarized in table
A, and further detail and historical measures are shown in tables 1 through 3.
Multifactor productivity is designed to measure the joint influences of
economic growth on technological change, efficiency improvements, returns
to scale, reallocation of resources, and other factors, allowing for the
effects of capital and labor. Multifactor productivity, therefore, differs
from labor productivity (output per hour worked) measures that are published
quarterly by BLS since it includes information on capital services and other
data that are not available on a quarterly basis.
Multifactor productivity measures for the manufacturing sector are now
developed from data based on the 1997 North American Industry Classification
System (NAICS). These measures are not comparable with the measures for the
manufacturing sectors previously reported on a 1987 Standard Industrial
Classification (SIC) basis. This is because manufacturing multifactor
productivity measures are aggregated from industry detail data that are
largely unavailable on a NAICS basis before 1987.
The data sources and methods used in the preparation of the manufacturing
series differ from those used in preparing the private business and private
nonfarm business series published elsewhere, and these measures are not
directly comparable. See BLS News Release USDL 06-1510, Preliminary
Multifactor Productivity Trends, 2005, www.bls.gov/news.release/pdf/prod3.pdf,
and see the Summary of Methods (pp.3-5) for further information on data
sources and methods.
Table A. Productivity and related data in manufacturing, percent changes,
1987-2004
(percent per year)
1987- 1987- 1990- 1995- 2000- 2001- 2002- 2003-
04 90 95 00 04 02 03 04
Productivity
Multifactor productivity1 1.3 0.2 1.2 2.0 1.4 3.9 4.0 -1.0
Output per hour of 3.6 1.7 3.3 4.7 4.1 7.1 6.1 1.7
all persons
Output per unit of 0.0 -0.1 0.6 0.4 -1.3 -1.0 0.9 1.5
capital services
Sectoral Output 2.4 2.1 3.3 4.5 -0.9 -0.6 1.0 1.3
Inputs
Hours2 -1.2 0.4 -0.1 -0.2 -4.8 -7.1 -4.8 -0.4
Capital services 2.5 2.2 2.7 4.1 0.4 0.4 0.1 -0.2
Energy -0.8 1.9 1.6 -2.5 -3.4 -1.5 -7.5 5.4
Non-energy materials 2.2 1.6 3.6 4.9 -2.3 -5.4 -3.6 6.9
Purchased business services 2.5 5.4 3.0 2.4 -0.1 -2.5 -1.0 2.3
Combined inputs3 1.1 2.0 2.1 2.4 -2.2 -4.3 -2.9 2.3
1. Output per unit of combined hours, capital, energy, materials, and business
services inputs.
2. Hours at work of all persons.
3. The growth rate of each input is weighted by its share of nominal costs.
Manufacturing productivity in 2002, 2003, and 2004
Changes in 2002. Multifactor productivity in manufacturing rose 3.9 percent in
2002. Until a slightly larger increase occurred in 2003, it had been the
largest rate of increase in the time series, which goes back to 1987. The
multifactor productivity gain in 2002 reflected a 0.6 percent decline in
sectoral output and a 4.3 percent decline in combined inputs. Capital services
continued to grow in 2002, but at a much more modest rate, posting a 0.4
percent advance. The decline in hours accelerated in 2002, falling 7.1 percent.
Changes in 2003. Multifactor productivity in manufacturing grew at an annual
rate of 4.0 percent in 2003, about the same as 2002. Combined inputs declined
2.9 percent but this decline was offset by a 1.0 percent increase in sectoral
output, the first increase in three years. Growth in capital services slowed
to 0.1 percent, the slowest growth since the current series began in 1987.
Hours declined 4.8 percent.
Changes in 2004. Multifactor productivity in manufacturing fell 1.0 percent
in 2004, the steepest decline since a 1.3 percent drop in 2001. The decline
was the result of a 1.3 percent increase in sectoral output that was more than
offset by a 2.3 percent increase in combined inputs. Capital services declined
0.2 percent, the first decline in the current time series. Hours decreased 0.4
percent, much less than in the previous two years. Materials grew 6.9
percent, the first increase since 1999 and the largest since 1997.
Historical trends in manufacturing
Labor productivity (output per hour worked) differs from multifactor
productivity (output per unit of combined inputs) in the treatment of both
capital and intermediate inputs (energy, materials, and business services).
Labor productivity measures do not explicitly account for the effects of
capital nor do they account for changes in the effects of intermediate inputs
on output growth. As a result, changes in input intensity
(the input-hours ratio) can influence labor productivity growth. In contrast,
multifactor productivity treats capital and intermediate inputs as explicit
factors of production and, therefore, is net of changes in input intensity.
Historical trends in labor productivity growth can be viewed as the sum of
five components: multifactor productivity growth, the contribution of increased
capital intensity, the contribution of increased energy intensity, the
contribution of increased materials intensity and the contribution of increased
business services intensity (see table B).
The contribution of input intensity equals the change in the input-hours ratio
multiplied by the input's cost share. Historically the labor share is about a
third of total cost, the capital share about a sixth, the materials share a
little over a fourth of total cost, and the business services share a little
less than a fourth. The energy share is historically only about 3 percent of
total cost.
Multifactor productivity grew 1.3 percent annually between 1987 (the starting
point of the manufacturing series) and 2004 (see table A). Sectoral output
increased at a 2.4 percent annual rate, and combined inputs rose 1.1 percent
per year (table A). Of the 3.6 percent growth rate in output per hour
(labor productivity), 1.3 percent can be attributed to increases in multifactor
productivity, 0.6 percent to the contribution of capital intensity
(see table B), 0.9 percent to changes in materials intensity, and 0.8 percent
to changes in business services intensity. Energy was a very small share of
total inputs; therefore it made no discernable contribution to output per hour.
Table B. Rates of growth in output per hour of all persons; the contributions
of capital intensity, energy, materials, and business services; and multifactor
productivity, manufacturing sector, 1987 to 2004
(percent per year)
1987- 1987- 1990- 1995- 2000- 2001- 2002- 2003-
04 90 95 00 04 02 03 04
Manufacturing
Output per hour of 3.6 1.7 3.3 4.7 4.1 7.1 6.1 1.7
all persons
Contribution of capital 0.6 0.3 0.4 0.7 0.8 1.2 0.8 0.0
intensity1
Contribution of information 0.2 0.1 0.2 0.4 0.2 0.3 0.2 0.0
processing equipment and
Software2
Contribution of all other 0.3 0.1 0.2 0.4 0.6 1.0 0.6 0.0
capital services
Contribution of energy 0.0 0.0 0.0 -0.1 0.0 0.1 -0.1 0.1
intensity3
Contribution of materials 0.9 0.3 1.0 1.4 0.7 0.5 0.3 1.9
intensity4
Contribution of business 0.8 0.9 0.6 0.6 1.1 1.2 1.0 0.6
services Intensity5
Multifactor productivity6 1.3 0.2 1.2 2.0 1.4 3.9 4.0 -1.0
1. Growth rate in capital services per hour multiplied by capital's share of
current dollar costs.
2. Growth rate of information processing equipment and software per hour
multiplied by its share of total costs.
3. Growth rate in energy services per hour multiplied by energy�s share of
current dollar costs.
4. Growth rate in materials services per hour multiplied by materials� share of
current dollar costs.
5. Growth rate in business services per hour multiplied by business services�
share of current dollar costs.
6. Output per unit of combined inputs.
From 1995 to 2000, multifactor productivity accelerated more rapidly than in
previous periods, growing at 2.0 percent per year (see Table A). Sectoral
output growth increased to 4.5 percent per year, while combined inputs
continued to advance at 2.4 percent per year, a slightly higher rate than the
2.1 percent rate of growth of the early 1990s. Hours declined slightly during
the 1995-2000 period, but the increase in the growth rate of capital services,
4.1 percent, was notable. The use of energy inputs declined 2.5 percent,
while the use of materials inputs accelerated to 4.9 percent. Business
services inputs grew less rapidly in this period, averaging 2.4 percent.
The contribution of capital intensity accelerated to 0.7 percent (see Table B).
As in the early 1990�s, information processing equipment and software
contributed about half of this growth. Materials intensity continued to
accelerate, growing 1.4 percent during this period. The contribution of
business services rose 0.6 percent, the same as in the previous period.
In the 2000-2004 period, productivity measures slowed somewhat, while still
increasing slightly faster than in the pre-1995 period. Multifactor
productivity growth increased 1.4 percent, down from 2.0 percent in the
previous period. Labor productivity slowed to a still robust growth rate
of 4.1 percent. The contribution of capital intensity growth gained 0.1
percentage points from the previous period to 0.8 percent. The growth of
the contribution of other capital services rose to 0.6 percent while the
contribution of information processing equipment grew 0.2 percent. The
contribution of materials dropped to a growth rate of 0.7 percent from 1.4
percent in the previous period. The contribution of business services
intensity accelerated during the 2000-2004 period, growing 1.1 percent.
Among detailed manufacturing industries, most durable goods and nondurable
goods industry groups experienced multifactor productivity gains in 2002
and 2003 (table 3) and a drop-off in productivity gains in 2004. The
exceptions were two nondurable goods industries: food, beverage and tobacco
products and printing and related support activities; and three durable goods
industries: nonmetallic mineral products, primary metals, and furniture and
related products. In these five industries multifactor productivity growth
accelerated in 2004. Eight of the 18 detailed industries experienced
multifactor productivity declines in 2004.
Over the 1987-2004 period, multifactor productivity advanced most rapidly in
the computer and electronic products industry. This industry�s 9.4 percent
growth during this period is 8 percentage points higher than the industry with
the next highest growth rate, miscellaneous manufacturing. In the 1995-2000
period, multifactor productivity grew very rapidly in the computer and
electronic products industry, 15.8 percent per year. In the 2000-2004 period,
the growth rate slowed to 4.7 percent. Food, beverage and tobacco products;
machinery; and electrical equipment, appliances and components were the three
industries to experience a multifactor productivity decline over the entire
1987-2004 period.
Summary of Methods for the manufacturing sector and manufacturing industries
The manufacturing multifactor productivity measures describe the relationship
between output in real terms and the inputs involved in its production. They
do not measure the specific contributions of labor, capital, or any other
factor of production. Rather, multifactor productivity is designed to measure
the joint influences on economic growth of technological change, efficiency
improvements, returns to scale, reallocation of resources due to shifts in
factor inputs across industries, and other factors. The multifactor
productivity indexes are derived by dividing an output index by an index of
the combined input of labor, capital services, energy, non-energy materials,
and business service inputs.
The multifactor productivity measures for manufacturing differ in several
ways from those for private business and private nonfarm business in their
treatment of labor input, output, and classes of factor inputs. First,
the manufacturing measure of labor input is a direct aggregate of hours.
This is in contrast to the major sector measures for which estimates of the
effects of changing labor composition have been developed.
Next, the output concept used for multifactor productivity in manufacturing is
�sectoral output.� Sectoral output is similar to gross output, but excludes
shipments from one establishment to another within the same manufacturing
industry or sector. In contrast, the output concept used for private business
and nonfarm business is �gross product originating�. Gross product originating
in private business equals gross domestic product in the economy less general
government, government enterprises, private households (including the rental
value of owner-occupied real estate), and non-profit institutions. Gross
product originating excludes intermediate transactions between businesses.
The output index for manufacturing is computed using a chained superlative
index (Tornqvist) of 3-digit NAICS industry outputs. Industry output is
measured as sectoral output, the total value of goods and services leaving the
industry. Wherever possible, the indexes of industry output are calculated with
a T�rnqvist formula. This 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. 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.
The resulting manufacturing multifactor productivity measure compares what
is produced in the manufacturing sector for use outside of manufacturing with
the inputs used in the manufacturing process obtained from outside of
manufacturing. The comparison excludes flows of intermediate inputs between
manufacturing establishments from measures of both output and inputs.
However, the comparison does include capital service inputs and capital goods
produced, even when these goods are produced and consumed in manufacturing.
Multifactor productivity in manufacturing compares "sectoral output" to three
classes of inputs: 1) hours at work of labor employed within manufacturing;
2) capital services employed by manufacturing establishments; and 3) purchases
of energy, materials, and business services from outside of manufacturing
(intermediates).
Hours paid of production workers are largely obtained from the Current
Employment Statistics (CES) survey. These hours of employees are then
converted to an at-work basis by using information from the Employment Cost
Index (ECI) of the National Compensation Survey (NCS) and the Hours at Work
Survey. Hours at work for nonproduction workers are derived using data from
the Current Population Survey (CPS), the CES, and the NCS. The hours at work
of proprietors are derived from the CPS. Hours at work data reflect
Productivity and Costs data as of the February 2, 2006 news release. It
does not reflect benchmark revisions to the CES survey and other revisions
to hours released on February 3, 2006. The construction of hours at work
follows the methods used in the private business sector described in
USDL 06-1510, Preliminary Multifactor Productivity Trends, 2005,
http://www.bls.gov/news.release/pdf/prod3.pdf, except that hours in
manufacturing are directly aggregated and do not include the effects of
changing labor composition.
Capital input measures the services derived from the stock of physical assets
and software. The assets included are fixed business equipment, structures,
inventories, and land. Among equipment, BLS provides additional detail for
information processing equipment and software (IPES). IPES is composed of four
broad classes of assets: computers and related equipment, software,
communications equipment, and other IPES equipment. Computers and related
equipment includes mainframe computers, personal computers, printers,
terminals, tape drives, storage devices, and integrated systems. Software is
comprised of pre-packaged, custom, and own-account software. Communications
equipment is not further differentiated. Other IPES includes medical equipment
and related instruments, electromedical instruments, nonmedical instruments,
photocopying and related equipment, and office and accounting machinery.
The aggregate capital input 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 investments in physical assets and software are obtained from BEA.
Nonfarm industry detail for land is based on IRS book value data.
Current-dollar gross product originating (GPO) data, obtained from BEA,
are used in estimating capital rental prices.
In manufacturing, intermediates are the largest input in terms of costs.
Furthermore, research has shown that substitution among inputs, including
intermediates, affects productivity change. Therefore, it is important to
include intermediates in productivity measures at the level of manufacturing.
In contrast, the more aggregate productivity measures compare "value-added"
output with two classes of inputs, capital and labor. Because of these
differences in methods, productivity change in manufacturing cannot be directly
compared with changes in private business or private nonfarm business.
Intermediate inputs (energy, materials, and purchased business services)
are obtained from BEA based on BEA annual input-output tables. Tornqvist
indexes of each of these three input classes are derived at the 3-digit NAICS
level and then aggregated to total manufacturing. As with the sectoral output
measures, materials inputs are adjusted to exclude transactions between
establishments within the same sector.
The five input indexes (capital services, hours, energy, materials, and
purchased business services) are combined using Tornqvist aggregation,
employing weights that represent each component's share of total costs.
Total costs are defined as the value of manufacturing sectoral output.
The index uses changing weights: The share in each year is averaged with the
preceding year's share.
Multifactor productivity data for the 1987-2004 period reflect a number of
changes in source data. For example, current NAICS input-output tables and
revised BEA chain-type price and indexes for intermediate inputs (energy,
materials, and business services),
(see tables at http://www.bea.gov/bea/dn2.htm, Gross Domestic Product by
Industry) have been incorporated.
BLS built multifactor productivity measures from three-digit NAICS detail.
Most of the critical data used to calculate these measures were not
reported on a NAICS basis for years prior to 1998. Detailed GDP by industry
data were available from 1998 forward but from 1987 to1997 many of the income
components needed to construct capital rental prices were obtained by applying
1997 SIC-to-NAICS conversion factors to SIC data and adjusting to the estimated
NAICS totals. A similar procedure was applied to manufacturing inventories,
energy, materials, and business services. Land data were only available from
1998 to 2002 on a NAICS basis. As a consequence, land estimates from 1987 to
1997 were calculated using a combination of SIC to NAICS conversion factors and
more detailed IRS data. Data for 2003 and 2004 were extrapolated using
detailed IRS data for 2002.
Comprehensive tables containing additional data beyond the scope of 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."
Methods for measuring manufacturing multifactor productivity are discussed in
"Measurement of productivity growth in U.S. manufacturing� in the July 1995
issue of the Monthly Labor Review (see http://www.bls.gov/mfp/mprgul95.pdf ).
Additional data not contained in the release can be obtained in print at
202-691-5606 or at http://www.bls.gov/mfp .
Summary of Methods for the manufacturing sector and manufacturing industries
The manufacturing multifactor productivity measures describe the relationship
between output in real terms and the inputs involved in its production.
They do not measure the specific contributions of labor, capital, or any other
factor of production. Rather, multifactor productivity is designed to measure
the joint influences on economic growth of technological change, efficiency
improvements, returns to scale, reallocation of resources due to shifts in
factor inputs across industries, and other factors. The multifactor
productivity indexes are derived by dividing an output index by an index of the
combined input of labor, capital services, energy, non-energy materials, and
business service inputs.
The multifactor productivity measures for manufacturing differ in several ways
from those for private business and private nonfarm business in their treatment
of labor input, output, and classes of factor inputs. First, the manufacturing
measure of labor input is a direct aggregate of hours. This is in contrast to
the major sector measures for which estimates of the effects of changing labor
composition have been developed.
Next, the output concept used for multifactor productivity in manufacturing is
�sectoral output.� Sectoral output is similar to gross output, but excludes
shipments from one establishment to another within the same manufacturing
industry or sector. In contrast, the output concept used for private business
and nonfarm business is �gross product originating�. Gross product originating
in private business equals gross domestic product in the economy less general
government, government enterprises, private households (including the rental
value of owner-occupied real estate), and non-profit institutions. Gross
product originating excludes intermediate transactions between businesses.
The output index for manufacturing is computed using a chained superlative
index (Tornqvist) of 3-digit NAICS industry outputs. Industry output is
measured as sectoral output, the total value of goods and services leaving the
industry. Wherever possible, the indexes of industry output are calculated with
a T�rnqvist formula. This 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. 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.
The resulting manufacturing multifactor productivity measure compares what is
produced in the manufacturing sector for use outside of manufacturing with the
inputs used in the manufacturing process obtained from outside of
manufacturing. The comparison excludes flows of intermediate inputs between
manufacturing establishments from measures of both output and inputs.
However, the comparison does include capital service inputs and capital goods
produced, even when these goods are produced and consumed in manufacturing.
Multifactor productivity in manufacturing compares "sectoral output" to three
classes of inputs: 1) hours at work of labor employed within manufacturing;
2) capital services employed by manufacturing establishments; and 3) purchases
of energy, materials, and business services from outside of manufacturing
(intermediates).
Hours paid of production workers are largely obtained from the Current
Employment Statistics (CES) survey. These hours of employees are then
converted to an at-work basis by using information from the Employment Cost
Index (ECI) of the National Compensation Survey (NCS) and the Hours at Work
Survey. Hours at work for nonproduction workers are derived using data from
the Current Population Survey (CPS), the CES, and the NCS. The hours at work
of proprietors are derived from the CPS. Hours at work data reflect
Productivity and Costs data as of the February 2, 2006 news release. It does
not reflect benchmark revisions to the CES survey and other revisions to hours
released on February 3, 2006. The construction of hours at work follows the
methods used in the private business sector described in USDL 06-1510,
Preliminary Multifactor Productivity Trends, 2005,
http://www.bls.gov/news.release/pdf/prod3.pdf, except that hours in
manufacturing are directly aggregated and do not include the effects of
changing labor composition.
Capital input measures the services derived from the stock of physical assets
and software. The assets included are fixed business equipment, structures,
inventories, and land. Among equipment, BLS provides additional detail for
information processing equipment and software (IPES). IPES is composed of four
broad classes of assets: computers and related equipment, software,
communications equipment, and other IPES equipment. Computers and related
equipment includes mainframe computers, personal computers, printers,
terminals, tape drives, storage devices, and integrated systems. Software is
comprised of pre-packaged, custom, and own-account software. Communications
equipment is not further differentiated. Other IPES includes medical equipment
and related instruments, electromedical instruments, nonmedical instruments,
photocopying and related equipment, and office and accounting machinery.
The aggregate capital input 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 investments in physical assets and software are obtained from BEA.
Nonfarm industry detail for land is based on IRS book value data.
Current-dollar gross product originating (GPO) data, obtained from BEA, are
used in estimating capital rental prices.
In manufacturing, intermediates are the largest input in terms of costs.
Furthermore, research has shown that substitution among inputs, including
intermediates, affects productivity change. Therefore, it is important to
include intermediates in productivity measures at the level of manufacturing.
In contrast, the more aggregate productivity measures compare "value-added"
output with two classes of inputs, capital and labor. Because of these
differences in methods, productivity change in manufacturing cannot be directly
compared with changes in private business or private nonfarm business.
Intermediate inputs (energy, materials, and purchased business services) are
obtained from BEA based on BEA annual input-output tables. Tornqvist indexes
of each of these three input classes are derived at the 3-digit NAICS level
and then aggregated to total manufacturing. As with the sectoral output
measures, materials inputs are adjusted to exclude transactions between
establishments within the same sector.
The five input indexes (capital services, hours, energy, materials, and
purchased business services) are combined using Tornqvist aggregation,
employing weights that represent each component's share of total costs.
Total costs are defined as the value of manufacturing sectoral output.
The index uses changing weights: The share in each year is averaged with the
preceding year's share.
Multifactor productivity data for the 1987-2004 period reflect a number of
changes in source data. For example, current NAICS input-output tables and
revised BEA chain-type price and indexes for intermediate inputs (energy,
materials, and business services), (see tables at
http://www.bea.gov/bea/dn2.htm, Gross Domestic Product by Industry) have been
incorporated.
BLS built multifactor productivity measures from three-digit NAICS detail.
Most of the critical data used to calculate these measures were not reported
on a NAICS basis for years prior to 1998. Detailed GDP by industry data were
available from 1998 forward but from 1987 to1997 many of the income components
needed to construct capital rental prices were obtained by applying 1997
SIC-to-NAICS conversion factors to SIC data and adjusting to the estimated
NAICS totals. A similar procedure was applied to manufacturing inventories,
energy, materials, and business services. Land data were only available
from 1998 to 2002 on a NAICS basis. As a consequence, land estimates from
1987 to 1997 were calculated using a combination of SIC to NAICS conversion
factors and more detailed IRS data. Data for 2003 and 2004 were extrapolated
using detailed IRS data for 2002.
Comprehensive tables containing additional data beyond the scope of 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." Methods
for measuring manufacturing multifactor productivity are discussed in
"Measurement of productivity growth in U.S. manufacturing� in the July 1995
issue of the Monthly Labor Review (see http://www.bls.gov/mfp/mprgul95.pdf ).
Additional data not contained in the release can be obtained in print at
202-691-5606 or at http://www.bls.gov/mfp .
Table 1. Manufacturing Sector: Productivity and related measures, 1987-2004
Indexes (2000=100)
Productivity Inputs
Output Output Purc- Comb-
per per Multi- Sect- Cap- hased ined
hour unit factor oral ital busi- units
of all of Product- out- Serv- Mater- ness of all
Year persons capital ivity1 put2 Hours3 ices4 Energy ials services inputs5
1987 63.9 95.5 84.9 64.2 100.4 67.1 99.3 62.9 65.3 75.6
1988 65.2 98.8 86.4 67.5 103.4 68.3 103.3 63.8 71.0 78.1
1989 65.9 98.3 85.9 68.6 104.1 69.8 103.0 65.0 75.3 79.8
1990 67.3 95.3 85.3 68.3 101.5 71.7 105.2 66.0 76.6 80.1
1991 69.1 91.6 85.0 67.2 97.2 73.3 104.8 65.6 76.0 79.0
1992 71.8 92.4 84.5 69.4 96.7 75.1 103.8 71.3 81.5 82.1
1993 73.5 93.7 86.7 72.1 98.0 76.9 107.1 71.9 81.7 83.1
1994 76.1 96.7 89.1 76.4 100.3 78.9 110.4 74.8 84.7 85.7
1995 79.4 98.2 90.6 80.3 101.2 81.8 113.7 78.8 88.9 88.7
1996 82.4 97.7 91.0 83.1 100.8 85.1 110.3 86.0 88.5 91.3
1997 86.9 100.3 93.6 89.2 102.6 88.9 108.2 92.9 92.1 95.3
1998 91.7 100.5 95.8 93.8 102.3 93.3 105.4 97.7 95.0 97.9
1999 95.8 100.3 96.5 97.3 101.6 97.1 105.5 102.6 100.0 100.9
2000 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
2001 101.5 93.6 98.7 94.9 93.5 101.4 90.6 93.3 100.7 96.2
2002 108.7 92.7 102.5 94.4 86.8 101.9 89.3 88.3 98.2 92.1
2003 115.3 93.5 106.6 95.3 82.6 102.0 82.5 85.1 97.3 89.4
2004 117.4 94.9 105.6 96.6 82.3 101.8 87.0 91.0 99.5 91.4
See footnotes following table 2.
Source: Bureau of Labor Statistics
Table 2. Manufacturing Sector: Productivity and related measures, 1988-2004
Indexes (2000=100)
Productivity Inputs
Output Output Purc- Comb-
per per Multi- Sect- Cap- hased ined
hour unit factor oral ital busi- units
of all of Product- out- Serv- Mater- ness of all
Year persons capital ivity1 put2 Hours3 ices4 Energy ials services inputs5
1988 2.1 3.4 1.8 5.2 3.1 1.7 4.0 1.4 8.7 3.4
1989 1.0 -0.6 -0.5 1.6 0.6 2.2 -0.3 2.0 6.0 2.2
1990 2.1 -3.0 -0.7 -0.4 -2.4 2.7 2.1 1.4 1.7 0.4
1991 2.6 -3.9 -0.3 -1.7 -4.2 2.3 -0.4 -0.6 -0.7 -1.4
1992 3.9 0.9 -0.6 3.3 -0.5 2.4 -0.9 8.7 7.2 4.0
1993 2.5 1.4 2.6 3.9 1.4 2.4 3.2 0.9 0.3 1.2
1994 3.5 3.2 2.7 5.9 2.4 2.7 3.1 3.9 3.8 3.2
1995 4.3 1.6 1.7 5.2 0.9 3.6 3.0 5.4 4.9 3.4
1996 3.9 -0.6 0.5 3.4 -0.4 4.0 -3.0 9.2 -0.4 2.9
1997 5.4 2.7 2.8 7.4 1.8 4.5 -1.9 8.0 4.0 4.4
1998 5.5 0.2 2.3 5.2 -0.3 5.0 -2.7 5.2 3.2 2.8
1999 4.4 -0.2 0.8 3.8 -0.6 4.0 0.1 5.0 5.3 3.0
2000 4.4 -0.3 3.6 2.7 -1.6 3.0 -5.2 -2.6 0.0 -0.8
2001 1.5 -6.4 -1.3 -5.1 -6.5 1.4 -9.4 -6.7 0.7 -3.8
2002 7.1 -1.0 3.9 -0.6 -7.1 0.4 -1.5 -5.4 -2.5 -4.3
2003 6.1 0.9 4.0 1.0 -4.8 0.1 -7.5 -3.6 -1.0 -2.9
2004 1.7 1.5 -1.0 1.3 -0.4 -0.2 5.4 6.9 2.3 2.3
See footnotes following table 2.
Source: Bureau of Labor Statistics
Table 3. Manufacturing industries: Multifactor productivity trends. 1987-2004
Average annual growth rates (percent)
Industry 1987- 1987- 1990- 1995- 2000- 2001- 2002- 2003-
2004 1990 1995 2000 2004 2002 2003 2004
Manufacturing 1.3 0.2 1.2 2.0 1.4 3.9 4.0 -1.0
Nondurable 0.2 -0.6 0.6 -0.3 1.0 3.0 3.1 -0.9
manufacturing
Food, beverage, -0.2 -1.7 1.5 -1.8 0.7 -0.4 0.5 0.8
and tobacco
products
Textile mills 1.0 0.9 0.7 1.4 0.8 3.0 6.6 -2.0
and textile
product mills
Apparel, leather, 0.7 0.1 2.8 0.7 -1.5 -5.5 5.2 -8.0
and allied
products
Paper products 0.0 -0.4 -0.1 0.2 0.3 3.3 1.5 0.0
Printing and 0.4 0.6 -0.4 0.4 1.2 2.3 0.8 3.6
related support
activities
Petroleum and coal 0.1 -0.2 0.4 0.2 -0.1 2.7 8.2 -7.1
products
Chemicals products 0.0 -0.8 -0.8 -0.1 1.8 6.3 2.0 0.7
Plastics and rubber 0.8 0.7 0.6 1.3 0.5 3.1 1.9 -0.6
products
Durable manufacturing 2.0 0.8 1.6 3.6 1.6 4.3 4.5 -1.0
Wood products 0.0 1.0 -1.3 0.1 0.8 1.9 2.8 -2.8
Nonmetallic mineral 1.0 0.3 1.0 0.9 1.7 1.8 2.8 3.1
products
Primary metals 1.0 1.1 0.1 0.5 2.4 3.4 2.7 6.6
Fabricated metal 0.3 -0.1 1.0 0.1 -0.1 1.7 3.5 -1.8
products
Machinery -0.7 1.0 -1.8 -0.8 -0.5 1.3 1.4 -3.3
Computer and 9.4 5.6 9.5 15.8 4.7 6.5 10.4 1.9
electronicc
products
Electrical -0.8 -2.2 -1.9 -1.0 1.8 4.1 3.0 0.3
equipment,
appliances,
and components
Transportation 0.0 -1.7 -0.2 0.4 1.2 6.6 3.2 -4.0
equipment
Furniture and 0.2 -0.8 0.6 0.7 0.0 2.4 -0.2 1.3
related products
Miscellaneous 1.4 2.4 0.2 1.9 1.7 1.2 4.0 2.9
manufacturing
Note: Multifactor productivity measures by industry are not directly
comparable to measures for aggregate manufacturing because industry measures
exclude transactions only within the specific industry while the aggregate
manufacturing measures also exclude transactions between all manufacturing
industries.
Footnotes, Tables 1-2
Source: Output data are from the Bureau of the Census, U.S. Department of
Commerce, and modified by the Bureau of Labor Statistics (BLS), U.S. Department
of Labor. Compensation and hours data are from BLS. Capital measures are
based on data supplied by BEA. See also Summary of Methods in this release.
(1) Sectoral output per combined units of capital, hours, energy, non-energy
materials, and purchased business services.
(2) Manufacturing gross output excluding transactions between manufacturing
establishments, superlative chained index.
(3) Hours at work of all persons.
(4) A measure of the flow of capital services used in the sector.
(5) Combined units of capital services, hours, energy, non-energy materials,
and purchased business services, superlative chained index.