Multifactor Productivity Trends in Manufacturing News Release

For release 10:00 a.m.  (EDT) Thursday, August 21, 2014	USDL-14-1549
Technical information:	(202) 691-5606 •  mfpweb@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902 •  PressOffice@bls.gov

MULTIFACTOR PRODUCTIVITY TRENDS IN MANUFACTURING - 2012


Manufacturing sector multifactor productivity increased at a 0.6 percent 
annual rate in 2012, the U.S. Bureau of Labor Statistics reported today.
This increase offset the 0.5-percent decrease in 2011. The multifactor 
productivity gain in 2012 reflected a 3.3-percent increase in output and
a 2.7-percent increase in combined inputs. (See table A, table 1.) 

Multifactor productivity measures the change in output per unit of 
combined inputs. Multifactor productivity in manufacturing is designed to 
measure the joint influences on economic growth of technological change,
efficiency improvements, returns to scale, reallocation of resources, 
and other factors, allowing for the effects of capital, labor and 
intermediate inputs (energy, materials, purchased business services). 
Multifactor productivity measures differ from labor productivity 
(output per hour worked) measures that are published quarterly by BLS 
because multifactor productivity measures include information on capital 
services and intermediate inputs. Also, data needed to construct multifactor
productivity are not available on a quarterly basis.

Durable manufacturing sector multifactor productivity increased 1.4
percent in 2012, following a 1.9-percent increase in 2011. Nondurable 
manufacturing sector multifactor productivity was unchanged in 2012, 
following a 2.3-percent decrease in 2011. (See table C, table 3.)

NAICS and Index Changes
Beginning with this release, multifactor productivity measures are 
developed from data based on the 2007 North American Industry 
Classification System (NAICS). Previous measures were based on the 
2002 NAICS. Additionally, the index series have been rebased from 
2005=100 to 2009=100.

Historical trends in manufacturing
Multifactor productivity in manufacturing grew 1.2 percent annually 
from 1987 to 2012 with sectoral output increasing at an annual rate of 1.8
percent, faster than the 0.6-percent annual increase in combined inputs. 
During the same period, output per hour (labor productivity) increased 3.3 
percent annually. (See table A.) Of the 3.3 percent growth rate in labor
productivity, multifactor productivity added 1.2 percent, capital intensity
contributed 0.8 percent, materials intensity added 0.7 percent, and purchased
business services intensity added a 0.4-percent increase. The contribution of
energy intensity was unchanged. (See table B.)

For the 2007-2012 period, multifactor productivity rose at a 0.4 percent 
annual rate compared to a larger 1.9 percent annual growth rate in the 
2000-2007 period. (See table A.) Sectoral output declined 1.2 percent and 
combined inputs declined 1.6 percent over the 2007-2012 period.

In 2012, more NAICS three-digit manufacturing industries had an increase in
sectoral output growth compared to 2011. The number of industries exhibiting
an increase in multifactor productivity growth remained steady compared to 
2011. In 2012, fewer NAICS three-digit manufacturing industries had an increase 
in combined inputs compared to 2011. Fourteen industries showed an increase in 
combined inputs. Fifteen industries showed increasing sectoral output. Nine out
of 18 manufacturing industries exhibited an increase in multifactor 
productivity.(See chart 2.) Nine industries experienced a decline in 
multifactor productivity growth. Of these nine industries, four 
were durable manufacturing industries: wood products; nonmetallic 
mineral products; primary metals; and electrical equipment, appliances,
and components. The remaining five industries were in the nondurable 
manufacturing sector: apparel, leather, and allied products; paper products;
printing and related support activities; chemical products; and plastics
and rubber products. (See table 3.)

Revised measures

Previous and revised productivity measures and related data for 2010 and
2011 for the manufacturing, durable manufacturing, and nondurable 
manufacturing sectors are displayed in table C. In 2011, multifactor 
productivity growth in the manufacturing sector decreased 0.5 percent, a 
downward revision from the previously reported 0.8- percent increase. 
Multifactor productivity in the durable manufacturing sector was 1.9 percent,
remaining the same as previously reported. In the nondurable manufacturing 
sector, multifactor productivity decreased 2.3 percent, a significant downward
revision from the previously reported a 0.3-percent decrease. The downward 
revision of multifactor productivity in the manufacturing and nondurable 
manufacturing sectors was due to a slight downward revision in sectoral output
and a large upward revision in combined inputs. These revisions were due to 
new intra-sector transaction ratios now based on 2007 NAICS and the new 
inclusion of research and development assets into capital services. In 2010, 
multifactor productivity in the manufacturing and durable manufacturing 
sectors was revised upward. It remained the same for the nondurable
manufacturing sector.  

Table A.  Compound annual growth rates for productivity, sectoral output, and
inputs in the manufacturing sector for selected periods, 1987-2012

In percent
                        1987- 1987- 1990- 1995- 2000- 2007- 2011-
                        2012  1990  1995  2000  2007  2012  2012
Productivity
   Multifactor
   productivity1         1.2   0.3   1.1   1.8   1.9   0.4   0.6
   Output per hour
   of all persons        3.3   2.0   3.3   5.2   3.7   1.5   1.0
   Output per unit
   of capital services  -0.5  -0.3   0.5   0.8  -0.7  -2.6   2.1

Sectoral Output          1.8   2.4   3.2   5.0   0.5  -1.2   3.3

Inputs

   Combined inputs2      0.6   2.1   2.1   3.2  -1.3  -1.6   2.7
      Labor hours3      -1.4   0.4  -0.1  -0.1  -3.1  -2.7   2.3
      Capital services   2.3   2.7   2.7   4.2   1.2   1.5   1.2
      Energy            -0.2   1.9   1.6   6.6  -2.8  -6.0   6.3
      Materials          1.6   2.3   4.0   7.7  -1.6  -2.7   1.6
      Purchased business
      services           1.2   5.5   3.2   1.2  -0.3  -1.1   7.7

1Output per combined units of hours, capital services, energy, materials,
and purchased business services.
2The growth rate of each input is weighted by its share of current dollar
costs.
3Hours at work of all persons.

Table B.  Compound annual growth rates in output per hour of all persons and 
contributions of capital intensity, intermediate inputs intensity, and
multifactor productivity in the manufacturing sector for selected periods,
1987-2012

In percent
                            1987- 1987- 1990- 1995- 2000- 2007- 2011-
                            2012  1990  1995  2000  2007  2012  2012
Manufacturing

Output per hour
of all persons               3.3   2.0   3.3   5.2   3.7   1.5   1.0

Contribution of
capital intensity1           0.8   0.5   0.6   0.9   0.9   1.0  -0.3

      Contribution of
      information
        capital2             0.1   0.1   0.1   0.2   0.1   0.1   0.0

      Contribution
      of intellectual
      property
      products3              0.4   0.2   0.3   0.4   0.4   0.5   0.0

      Contribution
      of all
      other capital
      services               0.3   0.2   0.2   0.3   0.5   0.4  -0.3

Contribution of
intermediate inputs4         1.2   1.3   1.6   2.4   0.9   0.1   0.6

      Contribution
      of energy
      intensity5             0.0   0.0   0.0   0.2   0.0  -0.1   0.1

      Contribution
      of materials
      intensity6             0.7   0.5   1.0   2.0   0.4   0.0  -0.2

      Contribution
      of purchased
      business
      services
      intensity7             0.4   0.7   0.5   0.2   0.5   0.3   0.7

Multifactor
productivity8                1.2   0.3   1.1   1.8   1.9   0.4   0.6

1Capital services per hour multiplied by capital's share of current dollar
costs.
2Information processing equipment per hour multiplied by its share ot total
current dollar costs.
3Intellectual property products per hout multiplied by its share of total
current dollar costs
4Intermediate inputs per hour multiplied by intermediate inputs share of
current dollar costs.
5Energy per hour multiplied by energy’s share of current dollar costs.
6Materials per hour multiplied by materials’ share of current dollar costs.
7Purchased business services per hour multiplied by purchased business'
services' share of current dollar costs.
8Output per combined units of hours, capital services, energy, materials,
and purchased business services.

Table C.  Previous and revised productivity and related measures for the
2010-2011 and 2009-2010 periods
                                                  Inputs
                                                                       Purc-
                       Multi-   Sec-  Com-         Capi-               hased 
                       factor   toral bined        tal                 busi- 
                       produc-  out-  in-          ser-         Mate-  ness
Sector                 tivity1  put   puts2 Hours3 vices Energy rials  services
Annual percent change,
2010-2011
Manufacturing
Previous                  0.8   3.1    2.3    2.3   0.1    2.0    6.3   -3.1
Revised                  -0.5   2.9    3.4    2.1   1.0    6.5    7.0    1.1
Durable manufacturing
Previous                  1.9   6.3    4.3    3.9   0.0    0.9   13.2   -2.1
Revised                   1.9   6.2    4.2    3.8   0.4   -4.9   13.3    1.3
Nondurable manufacturing
Previous                 -0.3   0.5    0.8   -0.4   0.2    2.7    2.7   -4.5
Revised                  -2.3   0.3    2.7   -0.6   1.4   14.0    4.3    0.8

Annual percent change,
2009-2010
Manufacturing
Previous                  4.5   6.3    1.7    0.0  -0.5    1.6    5.0    1.3
Revised                   4.9   6.2    1.2   -0.1   0.7   -3.9    3.4    1.3
Durable manufacturing
Previous                  6.8  10.0    3.0   -0.1  -1.6   12.8   14.2   -1.3
Revised                   8.2   9.9    1.5   -0.2  -0.8    0.9   10.6   -0.2
Nondurable manufacturing
Previous                  2.1   3.3    1.1    0.1   0.1   -5.1    1.4    4.9
Revised                   2.1   3.3    1.1    0.1   1.8   -6.9    1.0    3.0

1Output per combined units of hours, capital services, energy, materials, and
purchased business services.
2The growth rate of each input is weighted by its share of current dollar costs.
3Hours at work of all persons.

Technical Notes
Beginning with this release, historical data for multifactor productivity in
all sectors and industries reflect several important changes and revisions to
the data sources used to develop these series. In "Preview of the 2013 
Comprehensive Revision of the National Income and Product Accounts: Changes
in Definitions and Presentations,” Survey of Current Business, March 2013, 
and the 2014 Comprehensive Revision of the Industry Economic Accounts, the 
Bureau of Economic Analysis (BEA) described several important changes to the
national and annual industry accounts. Principal changes include the 
introduction of research and development and artistic originals as fixed 
investment, the capitalization of ownership transfer costs of residential 
fixed assets, and revisions to the annual industry accounts.
 
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 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 Hours 

The construction of the hours measures follows the methodology described in
USDL 14-0529, Multifactor Productivity Trends, 2012, 
http://www.bls.gov/news.release/archives/prod3_04032014.pdf. Hours in 
manufacturing are directly aggregated and do not include the effects of 
labor composition. Hours data for the manufacturing multifactor productivity
measures include hours for all persons working in the manufacturing sector –
wage and salary workers, the self-employed and unpaid family workers. The 
primary source of hours data is the BLS Current Employment Statistics (CES) 
survey. Hours paid of production workers are also obtained primarily from the
CES survey. The hours of these 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 BLS 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 are based on underlying hours data published in the 
February 6, 2014, USDL-14-0167, Productivity and Costs, 
http://www.bls.gov/news.release/archives/prod2_02062014.pdf. Therefore, the 
data do not reflect the benchmark revisions to the CES and other revisions 
to hours released on March 6, 2014. 

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 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 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 total 
manufacturing. Materials inputs are adjusted to exclude transactions between
establishments within the same sector.

Combined Inputs 
The five input indexes (capital services, hours, 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.
Manufacturing multifactor productivity measures exclude intermediate inputs
between manufacturing establishments from both output and inputs. Multifactor
productivity measures are not intended to measure 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 hours, 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 "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.  


Table 1. Manufacturing sector: productivity and related measures for the 
         1987-2012 period

Annual percent change from previous year

      Productivity               Inputs

      Output  Output  Multi-                                  Pur-     Com-
      per     per     factor Sec-         Capi-               chased   bined
      hour    unit    Pro-   toral        tal                 busi-    units 
      of all  of      ducti- out-         Ser-   Ener- Mate-  ness     of all
Year  persons capital vity1  put   Hours2 vices  gy    rials  services inputs3
1988   2.3     2.9     2.2   5.4    3.0    2.4   4.2    0.5     8.9      3.1
1989   1.4    -0.7    -0.4   2.1    0.6    2.8  -0.2    3.2     6.1      2.5
1990   2.4    -3.1    -1.0  -0.2   -2.5    3.0   1.9    3.0     1.6      0.8
1991   2.7    -4.1    -0.7  -1.6   -4.2    2.6  -0.4    0.5    -0.7     -0.9
1992   3.4     0.3    -0.7   2.9   -0.5    2.5  -1.0    8.9     7.4      3.6
1993   2.3     1.2     2.4   3.7    1.3    2.4   3.2    0.3     0.5      1.2
1994   3.5     3.3     2.7   5.9    2.3    2.5   3.5    4.2     3.8      3.1
1995   4.8     2.0     2.0   5.5    0.6    3.5   2.9    6.3     5.1      3.5
1996   3.6    -0.8     0.0   3.4   -0.2    4.2  -2.8   11.2    -0.5      3.5
1997   5.7     2.7     2.5   7.6    1.8    4.8  -2.3   10.4     3.9      4.9
1998   6.0     0.8     1.1   5.7   -0.3    4.8   4.8   10.4     4.7      4.5
1999   5.2     0.4     1.6   4.4   -0.7    4.0  23.6    6.2     0.4      2.8
2000   5.4     0.8     3.6   4.1   -1.3    3.2  12.0    0.9    -2.1      0.5
2001   2.5    -6.2    -1.6  -4.2   -6.6    2.1  14.9   -6.6     2.1     -2.6
2002   7.7    -1.1     2.6   0.1   -7.1    1.2 -25.4    3.6    -1.4     -2.5
2003   5.5    -0.2     5.3   0.4   -4.9    0.5 -10.7   -7.6    -5.3     -4.6
2004   2.5     1.7     2.4   1.9   -0.6    0.1  -5.0    3.2    -6.4     -0.6
2005   4.2     2.0     1.0   3.0   -1.1    1.0   7.0    2.7     7.2      2.0
2006   0.4    -0.3     2.5   1.2    0.7    1.4  -6.8   -3.7    -3.0     -1.3
2007   3.3    -0.6     1.0   1.6   -1.6    2.2  12.8   -2.2     5.7      0.6
2008   0.0    -6.8    -0.4  -4.0   -4.0    3.0  -6.9   -3.8   -11.2     -3.6
2009  -0.3   -14.3    -2.6 -13.2  -13.0    1.3 -27.5  -19.3    -3.2    -10.8
2010   6.2     5.4     4.9   6.2   -0.1    0.7  -3.9    3.4     1.3      1.2
2011   0.7     1.9    -0.5   2.9    2.1    1.0   6.5    7.0     1.1      3.4
2012   1.0     2.1     0.6   3.3    2.3    1.2   6.3    1.6     7.7      2.7

1. Output per combined units of hours, capital services, energy, materials,
   and purchased business services.
2. Hours at work of all persons.
3. Combined units of hours, capital services, energy, materials, and
   purchased business services, chained superlative index.

Source:  The Bureau of Labor Statistics (BLS) develops productivity measures
         using output data published by the Bureau ofthe 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, 1987-2012 

Indexes 2009=100

      Productivity                Inputs

      Output  Output  Multi-                                  Pur-     Com-
      per     per     factor Sec-         Capi-               chased   bined
      hour    unit    Pro-   toral        tal                 busi-    units 
      of all  of      ducti- out-         Ser-   Ener- Mate-  ness     of all
Year  persons capital vity1  put   Hours2 vices  gy    rials  services inputs3
1987    48.2  124.3    77.9  71.7  148.8   57.7 114.5   76.4    81.2    92.1
1988    49.3  127.8    79.6  75.6  153.3   59.1 119.3   76.8    88.4    94.9
1989    50.0  127.0    79.3  77.1  154.3   60.8 119.0   79.3    93.8    97.3
1990    51.2  123.1    78.5  77.0  150.4   62.6 121.3   81.7    95.3    98.1
1991    52.6  118.0    78.0  75.8  144.1   64.2 120.9   82.1    94.7    97.2
1992    54.4  118.4    77.4  78.0  143.4   65.9 119.7   89.4   101.7   100.7
1993    55.7  119.8    79.3  80.8  145.3   67.5 123.4   89.7   102.2   102.0
1994    57.6  123.8    81.4  85.6  148.7   69.1 127.8   93.5   106.1   105.1
1995    60.3  126.2    83.0  90.3  149.6   71.5 131.4   99.4   111.4   108.8
1996    62.5  125.2    83.0  93.4  149.4   74.6 127.8  110.5   110.8   112.6
1997    66.1  128.6    85.1 100.5  152.0   78.1 124.9  122.1   115.1   118.1
1998    70.1  129.7    86.1 106.2  151.6   81.9 130.9  134.7   120.6   123.4
1999    73.7  130.3    87.5 111.0  150.6   85.2 161.7  143.1   121.1   126.9
2000    77.7  131.3    90.6 115.5  148.7   87.9 181.2  144.4   118.5   127.4
2001    79.6  123.2    89.1 110.6  138.9   89.8 208.2  134.8   121.0   124.1
2002    85.8  121.8    91.5 110.7  129.1   90.9 155.4  139.6   119.4   121.1
2003    90.5  121.7    96.3 111.2  122.9   91.4 138.7  129.0   113.1   115.4
2004    92.7  123.8    98.7 113.3  122.2   91.5 131.7  133.1   105.8   114.8
2005    96.6  126.2    99.6 116.7  120.8   92.4 141.0  136.8   113.5   117.1
2006    97.1  125.9   102.1 118.1  121.7   93.8 131.4  131.8   110.1   115.6
2007   100.3  125.2   103.1 120.0  119.7   95.8 148.3  128.8   116.3   116.3
2008   100.3  116.7   102.7 115.2  114.9   98.7 138.0  124.0   103.3   112.1
2009   100.0  100.0   100.0 100.0  100.0  100.0 100.0  100.0   100.0   100.0
2010   106.2  105.4   104.9 106.2   99.9  100.7  96.1  103.4   101.3   101.2
2011   107.0  107.3   104.4 109.2  102.1  101.7 102.4  110.6   102.4   104.6
2012   108.0  109.6   105.0 112.8  104.4  103.0 108.8  112.4   110.3   107.4

1. Output per combined units of hours, capital services, energy, materials, 
   and purchased business services.
2. Hours at work of all persons.
3. Combined units of hours, capital services, energy, materials, and 
   purchased business services, chained superlative index.

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, 1987-2012

Compound annual growth rates


                        1987-  1987-  1990-   1995-  2000-  2007-  2011-
                        2012   1990   1995    2000   2007   2012   2012


Manufacturing            1.2    0.3    1.1     1.8    1.9    0.4    0.6

Nondurable
  manufacturing          0.1   -0.3    0.5    -0.3    0.6   -0.3    0.0
Food, beverage,
  and tobacco products   0.0   -1.5    1.4    -1.7    0.9    0.0    2.6
Textile mills and
  textile product mills  0.9    1.2    0.7     1.5    1.2   -0.1    3.0
Apparel, leather,
  and allied products    1.8    0.2    3.0     1.0    2.8    0.9   -6.2
Paper products          -0.6    0.4   -1.7    -1.7    0.5   -0.7   -0.5
Printing and related
  support activities     1.0    1.0   -0.2     0.2    2.7    0.8   -1.5
Petroleum and coal
  products               0.7    1.0    0.9     1.6    0.0    0.5    0.2
Chemical products       -0.5   -1.0   -1.0    -0.4    0.8   -1.5   -2.6
Plastics and
  rubber products        0.6    0.9    0.5     1.4    0.2    0.4   -0.2


Durable manufacturing    2.1    0.7    1.5     3.3    2.9    1.2    1.4
Wood products            0.3    1.2   -1.7    -0.4    0.9    1.4   -0.8
Nonmetallic 
  mineral products       0.1    0.0    0.8     0.3    0.1   -0.7   -0.5
Primary metals           0.4    1.1    0.0     0.7    0.7   -0.2   -2.2
Fabricated metal
  products               0.2   -0.1    0.9    -0.2    0.6   -0.6    2.2
Machinery                0.0    1.1   -2.0    -1.0    1.6    0.2    0.4
Computer and
  electronic products    8.4    4.9    9.1    13.8    7.9    5.2    1.8
Electrical equipment,
  appliances, and 
  components            -0.7   -2.0   -2.5    -2.6    2.0    0.1   -0.6
Transportation
  equipment              0.4   -1.8   -0.4     0.3    2.2    0.0    1.5
Furniture and
  related products       0.2   -0.6    0.6     0.5    0.5   -0.1    1.8
Miscellaneous
  manufacturing          1.2    2.3   -0.2     0.9    1.1    2.4    3.5


Note: Multifactor productivity measures by industry do not sum up to aggregate 
      manufacturing measures because industry measures exclude transactions 
      only within the specific industry while the aggregate manufacturing 
      measures also exclude transactions between all manufacturing industries.

Last Modified Date: August 21, 2014