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Internet: http://www.bls.gov/mfp/home.htm USDL 08-1213 Technical information: (202) 691-5618 For release: 10:00 a.m. EDT Media contact: (202) 691-5902 Friday, August 29, 2008 MULTIFACTOR PRODUCTIVITY TRENDS FOR DETAILED INDUSTRIES, 2006 Multifactor productivity -- defined as output per unit of combined inputs -- increased in almost three out of five four-digit NAICS manufacturing industries in 2006. More manufacturing industries experienced an increase in multifactor productivity over a longer period. From 1987 to 2006, multifactor productivity increased in almost two- thirds of manufacturing industries. This news release now covers two transportation industries, air transportation (NAICS 481) and line-haul railroads (NAICS 482111), that were previously published in separate reports. Multifactor productivity increased for both of these transportation industries in 2006 and over the longer term. Multifactor productivity indexes relate the change in output to the change in the combined inputs of labor, capital, and intermediate purchases consumed in producing that output. Multifactor productivity measures the joint influences on economic growth of a variety of factors, including technological change, returns to scale, enhancements in managerial and staff skills, changes in the organization of production, and other efficiency improvements. 2005-06, Manufacturing Industries Multifactor productivity rose in 50 of the 86 manufacturing industries in 2006, as output rose in 48 industries and combined inputs declined in 35 industries. Changes in multifactor productivity were broadly distributed and varied greatly across industries, even within 3-digit industry groups. (See Table 1.) The largest increase in multifactor productivity, 23.9 percent, occurred in computer and peripheral equipment (NAICS 3341), followed by an increase of 13.5 percent in communications equipment (NAICS 3342). Output rose rapidly in those industries, greatly exceeding the growth in combined inputs. Multifactor productivity declined 16.0 percent in other nonferrous metal production (NAICS 3314), where combined inputs rose although output decreased. The largest industries had more moderate movements in multifactor productivity. Changes for the twenty largest manufacturing industries varied from -4.5 percent to 4.6 percent. The number of manufacturing industries with annual multifactor productivity growth increased slightly in 2006 after dropping from 2004 to 2005. For most industries, input growth in 2006 was led by increases in intermediate purchases. Purchases of intermediates increased in 54 industries, while capital services increased in 36 industries and labor hours rose in 37 industries. 2005-06, Transportation Industries Multifactor productivity rose 3.6 percent in air transportation (NAICS 481) in 2006, as output rose and combined inputs fell. Multifactor productivity rose 2.6 percent in line-haul railroads (NAICS 482111), as output and combined inputs both increased. Historical Trends, Manufacturing Industries From 1987 to 2006, multifactor productivity rose in 56 manufacturing industries. (See Table 2.) Output and combined inputs both rose in 67 industries. (The industries with increasing output were not always the same as those with increasing inputs.) Although more industries registered multifactor productivity growth from 1987 to 2006 than from 2005 to 2006, the average annual change in multifactor productivity was more modest for most industries over the longer term. On average, multifactor productivity grew between 0.1 percent and 3.0 percent per year in 53 industries, and exceeded 3 percent per year in only three industries. The five manufacturing industries with the fastest growth in multifactor productivity over the longer period were all in the computer and electronic products subsector (NAICS 334). The multifactor productivity growth rates of 17.2 percent per year in computer and peripheral equipment (NAICS 3341) and 14.2 percent in semiconductors and electronic components (NAICS 3344) were much faster than those of any other manufacturing industry. Multifactor productivity declined in 28 industries from 1987 to 2006. However, the average decline over the period was less than 1 percent per year for all but eight industries. The largest decline in multifactor productivity over the longer period was 1.9 percent per year in accessories and other apparel (NAICS 3159). Table 3 shows average annual multifactor productivity growth by industry between 1987 and 2006 and for various subperiods. From 2000 to 2006, multifactor productivity grew in 63 manufacturing industries, more than in any of the other periods shown. By comparison, 35 manufacturing industries had multifactor productivity growth from 1995 to 2000. However, multifactor productivity growth from 2000 to 2006 was slower in the two industries that led manufacturing productivity growth from 1995 to 2000: computer and peripheral equipment (NAICS 3341) and semiconductors and electronic components (NAICS 3344). Historical Trends, Transportation Industries From 1987 to 2006, multifactor productivity increased 2.6 percent per year in line-haul railroads, as output rose 2.6 percent and combined inputs remained unchanged. Multifactor productivity rose more slowly in air transportation, 1.2 percent per year, as output gains averaging 3.4 percent per year were offset by a 2.3 percent average annual increase in combined inputs. Revised Measures Revisions to industry multifactor productivity measures in this release mainly reflect revisions to trends in intermediate inputs, including materials and purchased services. Those revisions mostly result from the incorporation of data from the 2002 Benchmark Input-Output (IO) Tables (April, 2008) published by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. For some industries, the 2002 IO data caused large revisions to nominal values of purchased services after 1997. Revisions also reflect the adoption of chain-weighted price indexes for deflating cost of materials, purchased services, and materials and supplies inventories, and changes to commodity weights for those price indexes based on the 2002 IO data. For most industries, the new data reflect more rapid growth in industry purchases of intermediates, especially services, and a resulting slower growth in multifactor productivity. The measures for manufacturing industries in this news release incorporate data from the 2006 Annual Survey of Manufactures of the Bureau of the Census, U.S. Department of Commerce. The output and labor input measures included in this release are the same as those used in the labor productivity measures, most recently updated on August 21, 2008. Additional Information Tables containing multifactor productivity and related indexes for the industries included in this release are accessible on the Multifactor Productivity website at http://www.bls.gov/mfp/home.htm. More detailed data and information are available upon request by sending an email to dipsweb@bls.gov or by calling the Division of Industry Productivity Studies (202-691-5618). Information in this report will be made available to sensory-impaired individuals upon request. Voice phone: 202-691-5618; TDD message referral phone number: 1-800-877-8339.
Technical Note Output Manufacturing industry output is measured as annual sectoral output, the total value, in real terms, of goods and services produced for sale outside the industry. Industry value of production is derived by adjusting industry shipments for changes in inventories and subtracting intra-industry transfers and resales. For most manufacturing industries, real output is measured by deflating nominal value of production, but for a few detailed industries physical quantities of output are measured. Output measures for manufacturing industries are constructed using data primarily from the economic censuses and annual surveys of the Bureau of the Census, U.S. Department of Commerce, together with information on price changes chiefly from the Bureau of Labor Statistics (BLS). For air transportation and line-haul railroads, annual real output is measured by aggregating freight ton- miles and passenger-miles. For air transportation, data on passenger-miles and freight ton-miles from the Bureau of Transportation Statistics (BTS), U.S. Department of Transportation (DOT), are combined using revenue weights from that source. For line-haul railroads, data on freight ton-miles and passenger miles from the Surface Transportation Board (STB) of DOT, the Association of American Railroads (AAR), and AMTRAK are aggregated using operating expenses from those sources as weights. Wherever possible, the indexes of industry output are calculated with a Tornqvist 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. Combined Inputs The index of combined inputs is a Tornqvist index of separate quantity indexes of labor, capital, and intermediate purchases. The annual growth rates of the various inputs are aggregated using their relative cost shares in total industry value of production as weights. The labor weight is based on labor compensation including fringe benefits. The weight for intermediate purchases is based on the total cost of materials, fuels, electricity, and purchased services. The capital weight is the value of net production minus the values of labor compensation and intermediate purchases. Capital Input Capital input reflects the flow of services derived from the stock of physical assets. Capital services are estimated by calculating capital stocks; changes in the stocks are assumed to be proportional to changes in capital services for each asset. For the manufacturing industries, physical capital is composed of 26 categories of equipment, 2 categories of structures, 3 categories of inventories, and land. Capital stocks are calculated using the perpetual inventory method, which takes into account the continual additions to and subtractions from the stock of capital as new investment and retirement of old capital occur. The perpetual inventory method measures stocks at the end of a year equal to a weighted sum of all past investments, where the weights are the asset's efficiency relative to a new asset. A hyperbolic age-efficiency function is assumed for calculating the relative efficiency of an asset at different ages. For manufacturing industries, estimates of investment by asset type are derived using annual capital expenditures from the economic censuses and annual surveys of the Bureau of the Census, along with estimates of asset detail by industry from the capital flow tables of the Bureau of Economic Analysis (BEA). Price changes are removed from the annual investment data before calculating stocks. Price deflators for each asset category are constructed by combining detailed price indexes (mostly PPIs) with weights from the BEA capital flow tables that reflect each industry's use of individual asset commodities. For air transportation, a weighted index of 44 types of airframes and 34 types of engines is derived from quantities and purchase prices from BTS. For assets other than airframes and engines, current dollar capital stocks are calculated with the perpetual inventory method. Inventories of parts and supplies are also included; the current dollar series is deflated with a weighted cost index based on data from the Air Transport Association (ATA) and BTS. Indexes for aircraft and engines, non-aircraft assets, and parts and supplies inventories are aggregated using cost share weights to derive an overall measure of capital input. For line-haul railroads, current dollar investment for 10 categories of equipment and 13 categories of structures, obtained from STB and AMTRAK, were deflated with BLS producer price indexes and deflators based on BEA data. An estimate of capitalized hours was removed from the labor input measure in order to avoid double-counting, because some capitalized labor costs are embedded in the railroad investment data. The perpetual inventory method was used to calculate capital stocks for each of the items. Inventories of materials and supplies are also included. Estimates of investments in land from STB and AMTRAK were deflated with price indexes from BEA. The index of aggregate capital input for each manufacturing and transportation industry is calculated as an annually-chained Tornqvist quantity index. To construct the index, the growth rates of the stocks of each type of asset are aggregated using weights that are the average of each asset type's cost share in successive years. The asset costs are estimated by multiplying the asset stocks by implicit rental prices. Labor Input For manufacturing, the industry labor input measures represent the hours paid to wage and salary workers in the industry. The primary source of data on employment and hours is the BLS Current Employment Statistics (CES) survey, which provides monthly data on the number of jobs held by wage and salary workers employed directly in nonfarm establishments. The CES survey also provides data on the average weekly hours of production workers in these establishments. Data from the BLS Current Population Survey (CPS) are used to supplement the CES data. The Division of Industry Productivity Studies (DIPS) estimates the average weekly hours of nonproduction workers for each industry using data from the CPS together with the CES data. The hours of all workers are treated as homogeneous and are directly aggregated. For air transportation and line-haul railroads, labor input measures are derived primarily from DOT data. For air transportation, annual estimates are based on monthly data from BTS. For line-haul railroads, total labor hours for supervisory and nonsupervisory workers are derived from STB data and supplemented with data from AAR. For the railroad industry, the labor input measures use the same source data as that used in the labor productivity series which includes an adjustment to remove capitalized labor hours. Intermediate Purchases Input The index of intermediate purchases is constructed as a Tornqvist index of separate quantities of materials, services, fuels, and electricity consumed by each industry. Except for electricity consumed by manufacturing industries, for which direct quantity data are available, quantities are derived by deflating current-dollar values with appropriate price deflators. For manufacturing industries, nominal values of materials, fuels and electricity and quantities of electricity consumed by each industry are obtained from economic censuses and annual surveys of the Bureau of the Census. To avoid double counting, an adjustment is made to the materials estimates to exclude the value of intra-industry commodity transfers. Purchased business services are estimated using benchmark input-output tables and other annual industry data BEA. Constant-dollar materials consumed are derived by dividing annual current-dollar industry purchases by a weighted price deflator for each industry. Materials deflators are constructed for each industry by combining detailed producer price indexes and import price indexes from BLS using weights based on detailed commodity data from the BEA benchmark input-output tables. Aggregate price indexes to deflate purchased business services are constructed in a similar manner. Annual total fuels consumed by each industry are also deflated with weighted price deflators. Producer price indexes for individual fuel categories are weighted together with weights reflecting detailed fuels expenditures by industry from the Energy Information Administration (EIA), U.S. Department of Energy. For air transportation, detailed cost of materials, services, fuels, and electricity from the BTS were deflated using cost indexes from ATA. For line-haul railroads, intermediate purchases data from STB were supplemented with data from other sources including AAR, AMTRAK, EIA, and the Edison Electric Institute. The nominal values were deflated with producer price indexes from BLS and implicit price deflators calculated from BEA investment data.
Table 1. Multifactor productivity and related data for 88 industries, percent change, 2005-2006 Percent change, 2005-2006 2006 -------------------------------------------------------- NAICS Industry Employment Multifactor Combined Intermediate code (thousands) productivity Output inputs Labor Capital purchases Manufacturing 3111 Animal food 49 -0.4 -1.5 -1.1 8.5 0.7 -3.0 3112 Grain and oilseed milling 61 -3.7 -3.6 0.1 -1.9 0.6 0.1 3113 Sugar and confectionery products 75 -2.4 -4.7 -2.3 -3.5 -0.6 -2.9 3114 Fruit and vegetable preserving and specialty 176 -1.1 -0.6 0.5 3.3 -0.1 0.1 3115 Dairy products 131 -4.0 1.3 5.6 0.7 1.5 7.2 3116 Animal slaughtering and processing 506 0.0 4.4 4.4 4.8 2.8 4.6 3117 Seafood product preparation and packaging 41 3.0 4.8 1.8 -4.3 2.0 3.0 3118 Bakeries and tortilla manufacturing 280 -4.5 -2.3 2.3 2.1 -0.3 3.0 3119 Other food products 160 1.3 4.8 3.5 4.7 1.5 4.5 3121 Beverages 171 -1.7 -0.8 0.9 6.5 0.4 0.2 3122 Tobacco and tobacco products 24 0.6 -3.8 -4.4 -5.7 -4.5 -3.7 3131 Fiber, yarn, and thread mills 48 -0.4 -8.7 -8.4 -6.2 -4.2 -9.4 3132 Fabric mills 90 -1.3 -9.1 -7.9 -12.5 -4.7 -7.2 3133 Textile and fabric finishing mills 58 -5.3 -17.3 -12.7 -8.4 -5.1 -15.0 3141 Textile furnishings mills 90 -5.5 -10.5 -5.3 -4.1 -1.5 -7.4 3149 Other textile product mills 71 0.4 -4.1 -4.4 -1.9 -1.9 -6.3 3151 Apparel knitting mills 35 6.6 0.0 -6.1 -3.0 -4.1 -9.1 3152 Cut and sew apparel 184 3.4 -2.3 -5.5 -5.6 -3.8 -6.3 3159 Accessories and other apparel 20 -1.6 -18.9 -17.6 -10.8 -4.6 -21.4 3161 Leather and hide tanning and finishing 4 -7.4 -27.1 -21.3 -26.8 -5.6 -20.9 3162 Footwear 17 5.8 1.3 -4.2 -7.3 -3.0 -2.7 3169 Other leather products 15 10.6 11.1 0.5 -4.7 5.0 -0.1 3211 Sawmills and wood preservation 118 -3.3 1.3 4.8 -0.5 1.7 6.3 3212 Plywood and engineered wood products 120 2.3 1.8 -0.5 -4.5 2.9 0.3 3219 Other wood products 321 -1.2 0.3 1.5 1.1 4.1 1.4 3221 Pulp, paper, and paperboard mills 136 1.9 1.2 -0.7 -1.1 -3.2 0.8 3222 Converted paper products 334 -0.3 -1.1 -0.8 -2.7 1.8 -0.9 3231 Printing and related support activities 634 0.4 0.8 0.4 -0.5 1.2 0.8 3241 Petroleum and coal products 113 -3.0 0.4 3.5 1.2 3.3 3.6 3251 Basic chemicals 148 0.9 2.2 1.3 -0.3 -0.6 2.2 3252 Resin, rubber, and artificial fibers 105 2.5 -0.9 -3.3 -4.2 -1.0 -3.7 3253 Agricultural chemicals 38 -1.8 -3.7 -2.0 -2.4 -2.2 -1.9 3254 Pharmaceuticals and medicines 292 2.0 4.8 2.8 0.3 1.1 5.5 3255 Paints, coatings, and adhesives 67 -4.6 -4.6 -0.1 -0.2 -1.7 0.2 3256 Soaps, cleaning compounds, and toiletries 111 1.0 6.2 5.1 -0.2 0.6 10.0 3259 Other chemical products and preparations 105 -3.6 -3.0 0.6 1.4 -3.5 0.6 3261 Plastics products 631 -2.7 -0.2 2.5 1.2 1.1 3.4 3262 Rubber products 156 -2.7 -3.3 -0.6 -8.1 -0.6 2.9 3271 Clay products and refractories 61 -6.9 -4.0 3.1 -1.7 -0.1 7.2 3272 Glass and glass products 102 0.6 0.8 0.2 -6.6 -1.1 4.0 3273 Cement and concrete products 248 -3.5 3.8 7.5 7.2 2.9 9.6 3274 Lime and gypsum products 19 -4.4 -1.8 2.7 0.5 4.8 1.6 3279 Other nonmetallic mineral products 80 -0.9 4.9 5.9 7.2 1.1 7.6 3311 Iron and steel mills and ferroalloy production 97 0.1 1.5 1.4 1.3 -2.5 2.8 3312 Steel products from purchased steel 61 1.4 -3.2 -4.5 2.1 -3.2 -6.1 3313 Alumina and aluminum production 73 -3.1 1.2 4.4 3.0 -1.2 5.8 3314 Other nonferrous metal production 73 -16.0 -7.9 9.6 -2.6 -1.2 13.4 3315 Foundries 161 1.8 1.8 0.0 -0.7 -0.7 0.4 3321 Forging and stamping 113 4.2 6.4 2.1 2.8 0.7 2.3 3322 Cutlery and hand tools 54 2.5 -0.9 -3.4 -3.1 -3.3 -3.6 3323 Architectural and structural metals 412 3.1 8.2 4.9 4.1 2.5 5.7 3324 Boilers, tanks, and shipping containers 94 5.0 7.1 2.0 6.0 0.1 1.0 3325 Hardware 34 0.9 -2.1 -2.9 -1.6 -2.3 -3.8 3326 Spring and wire products 58 -3.2 -3.8 -0.7 -2.0 0.1 -0.2 3327 Machine shops and threaded products 353 2.2 5.8 3.5 5.1 2.0 2.9 3328 Coating, engraving, and heat treating metals 149 -0.8 0.7 1.5 1.5 -0.8 2.2 3329 Other fabricated metal products 287 3.5 7.2 3.6 2.5 0.0 6.2 3331 Agriculture, construction, and mining machinery 220 2.0 7.5 5.4 7.6 2.2 5.8 3332 Industrial machinery 123 6.2 10.0 3.6 -0.5 -1.6 6.0 3333 Commercial and service industry machinery 109 4.2 5.6 1.4 -0.5 -2.4 2.8 3334 HVAC and commercial refrigeration equipment 156 3.0 0.4 -2.5 3.3 -0.5 -4.7 3335 Metalworking machinery 200 -0.1 0.4 0.5 -0.4 -1.0 1.4 3336 Turbine and power transmission equipment 101 0.7 3.9 3.1 7.1 1.8 2.4 3339 Other general purpose machinery 272 1.7 3.8 2.1 -0.1 0.7 3.3 3341 Computer and peripheral equipment 196 23.9 25.1 1.0 -5.0 -1.2 2.5 3342 Communications equipment 141 13.5 17.7 3.7 -5.1 0.7 6.9 3343 Audio and video equipment 31 8.3 -1.1 -8.7 -5.4 -1.8 -9.6 3344 Semiconductors and electronic components 458 2.0 2.3 0.3 2.7 1.0 -1.3 3345 Electronic instruments 440 1.3 4.2 2.9 1.5 2.9 3.6 3346 Magnetic media manufacturing and reproduction 32 -2.5 -7.2 -4.8 -4.3 -3.2 -5.1 3351 Electric lighting equipment 59 2.2 0.2 -1.9 -4.5 -1.3 -1.1 3352 Household appliances 80 1.9 -1.8 -3.6 -6.7 -3.4 -2.9 3353 Electrical equipment 155 1.2 3.6 2.3 4.0 -1.7 2.8 3359 Other electrical equipment and components 139 -2.1 -0.4 1.7 4.6 -1.9 1.9 3361 Motor vehicles 237 4.6 2.6 -1.9 -7.1 -0.9 -1.5 3362 Motor vehicle bodies and trailers 179 1.8 3.8 2.0 6.9 1.7 0.8 3363 Motor vehicle parts 655 2.4 -3.7 -6.0 -3.4 -2.3 -6.9 3364 Aerospace products and parts 474 0.1 -0.1 -0.3 5.8 -1.4 -2.9 3365 Railroad rolling stock 28 7.0 15.1 7.6 6.8 1.3 9.0 3366 Ship and boat building 156 1.8 1.6 -0.2 5.1 -1.2 -2.4 3369 Other transportation equipment 41 3.6 5.0 1.4 -2.2 4.8 1.6 3371 Household and institutional furniture 371 -1.4 -2.3 -0.9 -4.9 0.0 0.8 3372 Office furniture and fixtures 136 -0.2 3.9 4.1 4.2 -0.7 5.9 3379 Other furniture-related products 51 2.1 -1.2 -3.2 -3.0 -1.7 -3.8 3391 Medical equipment and supplies 308 1.4 4.4 3.0 1.5 4.6 2.5 3399 Other miscellaneous manufacturing 341 1.3 1.7 0.4 -2.2 2.2 1.2 Transportation 481 Air Transportation 457 3.6 1.5 -2.0 -3.5 0.3 -1.5 482111 Line-Haul Railroads 186 2.6 4.7 2.0 1.5 0.4 3.2
Table 2. Multifactor productivity and related data for 88 industries, average annual percent change, 1987-2006 Average annual percent change, 1987-2006 ------------------------------------------------------------ NAICS Industry Multifactor Combined Intermediate code productivity Output inputs Labor Capital purchases Manufacturing 3111 Animal food 0.8 2.3 1.5 -0.8 2.4 1.5 3112 Grain and oilseed milling -0.2 1.3 1.5 -1.2 1.3 1.8 3113 Sugar and confectionery products 0.6 0.9 0.3 -1.2 1.5 0.1 3114 Fruit and vegetable preserving and specialty 0.2 1.5 1.2 -0.2 1.8 1.3 3115 Dairy products -0.5 1.0 1.6 -0.5 2.1 1.8 3116 Animal slaughtering and processing 0.8 2.5 1.6 1.5 2.9 1.5 3117 Seafood product preparation and packaging 0.1 1.3 1.2 -1.4 1.4 1.7 3118 Bakeries and tortilla manufacturing -1.3 0.6 2.0 0.2 2.2 2.8 3119 Other food products 0.4 2.3 1.8 1.3 1.5 2.1 3121 Beverages 0.8 1.7 1.0 -0.3 0.9 1.2 3122 Tobacco and tobacco products -0.4 -2.1 -1.7 -3.5 -1.9 -2.2 3131 Fiber, yarn, and thread mills 0.7 -0.6 -1.3 -4.4 -0.5 -0.4 3132 Fabric mills 1.1 -1.5 -2.5 -6.1 -1.1 -1.3 3133 Textile and fabric finishing mills 0.2 -2.2 -2.5 -3.9 -1.0 -2.3 3141 Textile furnishings mills 0.3 0.0 -0.2 -1.3 0.0 0.0 3149 Other textile product mills 0.3 0.7 0.4 -1.0 1.9 0.8 3151 Apparel knitting mills 0.9 -3.7 -4.5 -6.1 -1.4 -4.6 3152 Cut and sew apparel -0.4 -5.0 -4.6 -7.5 -1.6 -4.3 3159 Accessories and other apparel -1.9 -5.5 -3.7 -3.6 -0.8 -3.9 3161 Leather and hide tanning and finishing -1.3 -4.9 -3.6 -6.1 -1.4 -3.6 3162 Footwear -0.3 -6.5 -6.2 -8.5 -2.9 -5.6 3169 Other leather products 1.7 -1.3 -3.0 -4.6 -0.9 -2.7 3211 Sawmills and wood preservation 0.3 1.3 1.0 -1.4 0.2 1.8 3212 Plywood and engineered wood products -0.3 1.6 1.9 0.7 2.2 2.4 3219 Other wood products -0.7 1.0 1.7 0.0 2.0 2.4 3221 Pulp, paper, and paperboard mills 0.7 0.3 -0.4 -2.9 0.3 0.1 3222 Converted paper products -0.1 0.6 0.7 -0.8 1.7 0.9 3231 Printing and related support activities -0.5 0.3 0.8 -0.8 2.7 1.3 3241 Petroleum and coal products 0.7 1.3 0.6 -1.6 1.4 0.7 3251 Basic chemicals -0.6 0.6 1.2 -2.4 1.0 2.1 3252 Resin, rubber, and artificial fibers 0.1 1.3 1.1 -1.7 1.4 1.5 3253 Agricultural chemicals 1.4 1.2 -0.2 -1.4 -0.9 0.5 3254 Pharmaceuticals and medicines -1.2 4.2 5.4 2.7 5.7 6.2 3255 Paints, coatings, and adhesives -1.2 0.3 1.5 -1.1 0.9 2.2 3256 Soaps, cleaning compounds, and toiletries 0.4 2.9 2.5 -0.6 2.4 3.1 3259 Other chemical products and preparations -1.3 0.4 1.7 -1.9 0.9 3.1 3261 Plastics products 0.2 3.0 2.7 0.4 4.0 3.3 3262 Rubber products 0.7 1.1 0.4 -1.6 0.9 1.3 3271 Clay products and refractories 0.1 -0.5 -0.6 -1.8 -0.2 0.1 3272 Glass and glass products 0.7 0.8 0.2 -1.7 1.2 0.7 3273 Cement and concrete products 0.0 2.1 2.2 1.6 1.4 2.7 3274 Lime and gypsum products -0.2 0.6 0.8 -0.8 1.2 1.0 3279 Other nonmetallic mineral products 0.8 1.7 0.9 -0.1 0.5 1.6 3311 Iron and steel mills and ferroalloy production 1.3 1.9 0.6 -2.9 -1.8 2.6 3312 Steel products from purchased steel -0.3 -0.1 0.3 -0.5 -1.4 1.0 3313 Alumina and aluminum production 0.1 0.7 0.6 -2.0 -0.1 1.5 3314 Other nonferrous metal production -1.5 -1.2 0.4 -2.1 -0.5 1.1 3315 Foundries 0.2 1.2 1.0 -1.3 0.2 2.8 3321 Forging and stamping 1.0 2.2 1.2 -0.9 1.9 2.2 3322 Cutlery and hand tools -0.4 -0.2 0.2 -1.8 0.5 1.4 3323 Architectural and structural metals -0.1 2.2 2.3 0.9 1.6 3.2 3324 Boilers, tanks, and shipping containers 0.5 -0.1 -0.5 -0.7 0.0 -0.6 3325 Hardware -0.2 -1.1 -1.0 -3.1 0.1 -0.2 3326 Spring and wire products 0.9 1.2 0.3 -1.6 1.4 1.0 3327 Machine shops and threaded products 1.1 3.5 2.4 1.2 2.9 3.4 3328 Coating, engraving, and heat treating metals 1.3 3.5 2.2 0.4 2.5 3.2 3329 Other fabricated metal products 0.1 0.6 0.6 -0.7 0.8 1.3 3331 Agriculture, construction, and mining machinery 0.7 3.3 2.6 0.4 0.0 4.0 3332 Industrial machinery 0.4 2.3 1.9 -0.8 2.6 3.3 3333 Commercial and service industry machinery -0.5 0.0 0.5 -1.8 0.5 1.7 3334 HVAC and commercial refrigeration equipment 0.9 2.2 1.3 -0.2 1.7 1.9 3335 Metalworking machinery 0.7 0.8 0.1 -1.4 1.2 1.2 3336 Turbine and power transmission equipment -0.4 2.2 2.7 -0.3 1.0 4.1 3339 Other general purpose machinery 0.4 2.0 1.6 -0.9 0.8 3.1 3341 Computer and peripheral equipment 17.2 19.4 1.9 -4.1 1.3 3.6 3342 Communications equipment 3.4 5.4 1.9 -2.6 3.2 4.0 3343 Audio and video equipment 2.5 3.7 1.2 -3.4 1.1 2.1 3344 Semiconductors and electronic components 14.2 16.3 1.8 -1.2 6.7 1.0 3345 Electronic instruments -0.1 1.8 1.9 -2.2 1.0 5.2 3346 Magnetic media manufacturing and reproduction 3.0 2.1 -0.8 -0.4 2.0 -1.3 3351 Electric lighting equipment 0.3 0.3 0.1 -1.8 0.6 0.7 3352 Household appliances 1.9 1.8 -0.1 -2.7 0.1 0.7 3353 Electrical equipment 0.2 0.3 0.1 -2.6 -0.4 1.8 3359 Other electrical equipment and components 0.0 0.3 0.3 -1.7 0.6 1.1 3361 Motor vehicles 0.6 2.6 2.0 -1.5 1.5 2.4 3362 Motor vehicle bodies and trailers -0.3 3.0 3.3 1.6 2.2 3.8 3363 Motor vehicle parts 1.1 3.3 2.2 0.1 1.8 3.0 3364 Aerospace products and parts -1.0 -1.2 -0.2 -2.7 -0.2 1.5 3365 Railroad rolling stock 1.3 6.0 4.7 0.7 -0.5 6.7 3366 Ship and boat building -0.6 1.0 1.7 -0.5 -0.2 3.2 3369 Other transportation equipment 1.4 5.5 4.1 0.2 3.3 5.3 3371 Household and institutional furniture 0.1 1.4 1.3 -0.6 1.7 2.2 3372 Office furniture and fixtures 0.4 1.8 1.4 -0.6 2.0 2.4 3379 Other furniture-related products 0.7 2.6 1.9 0.4 0.8 2.7 3391 Medical equipment and supplies 1.5 4.8 3.3 1.1 5.3 3.7 3399 Other miscellaneous manufacturing 0.7 1.9 1.2 -0.8 2.2 2.0 Transportation 481 Air Transportation 1.2 3.4 2.3 0.4 4.1 3.4 482111 Line-Haul Railroads 2.6 2.6 0.0 -2.1 -0.5 2.5
Table 3. Multifactor productivity trends, 1987-2006 and selected subperiods Average annual percent change ------------------------------------------------------ NAICS Industry 1987-2006 1987-90 1990-95 1995-00 2000-06 2005-06 code Manufacturing 3111 Animal food 0.8 0.6 0.3 -0.8 2.7 -0.4 3112 Grain and oilseed milling -0.2 0.0 0.5 0.3 -1.2 -3.7 3113 Sugar and confectionery products 0.6 -0.4 0.3 1.8 0.2 -2.4 3114 Fruit and vegetable preserving and specialty 0.2 -2.6 1.1 0.9 0.4 -1.1 3115 Dairy products -0.5 -0.3 -0.6 -0.7 -0.4 -4.0 3116 Animal slaughtering and processing 0.8 -1.1 1.2 1.2 1.2 0.0 3117 Seafood product preparation and packaging 0.1 -1.3 0.0 -0.4 1.2 3.0 3118 Bakeries and tortilla manufacturing -1.3 -4.9 0.4 -0.9 -1.2 -4.5 3119 Other food products 0.4 -0.2 0.4 -0.2 1.3 1.3 3121 Beverages 0.8 0.3 0.9 -1.0 2.4 -1.7 3122 Tobacco and tobacco products -0.4 -1.1 -0.7 0.5 -0.7 0.6 3131 Fiber, yarn, and thread mills 0.7 0.0 0.3 0.0 1.8 -0.4 3132 Fabric mills 1.1 -0.2 1.3 -0.1 2.5 -1.3 3133 Textile and fabric finishing mills 0.2 -0.2 -0.1 1.1 0.1 -5.3 3141 Textile furnishings mills 0.3 -0.6 1.2 -1.0 1.0 -5.5 3149 Other textile product mills 0.3 -1.0 -0.5 -0.1 1.8 0.4 3151 Apparel knitting mills 0.9 0.9 2.0 -2.7 3.0 6.6 3152 Cut and sew apparel -0.4 -1.3 0.5 -1.7 0.3 3.4 3159 Accessories and other apparel -1.9 1.0 0.4 -4.9 -2.7 -1.6 3161 Leather and hide tanning and finishing -1.3 -3.5 -2.0 4.1 -4.0 -7.4 3162 Footwear -0.3 -1.8 0.3 -1.0 0.7 5.8 3169 Other leather products 1.7 -0.4 -2.0 2.0 5.7 10.6 3211 Sawmills and wood preservation 0.3 2.4 0.2 -1.0 0.4 -3.3 3212 Plywood and engineered wood products -0.3 -0.7 -0.4 -0.8 0.3 2.3 3219 Other wood products -0.7 -0.8 -1.2 -1.0 0.0 -1.2 3221 Pulp, paper, and paperboard mills 0.7 -1.7 -0.4 1.2 2.3 1.9 3222 Converted paper products -0.1 -0.7 -0.2 -0.3 0.5 -0.3 3231 Printing and related support activities -0.5 -0.2 -0.4 -1.5 0.2 0.4 3241 Petroleum and coal products 0.7 -2.0 1.9 1.9 0.0 -3.0 3251 Basic chemicals -0.6 -1.0 -3.3 -1.1 2.3 0.9 3252 Resin, rubber, and artificial fibers 0.1 -0.8 1.0 -0.8 0.6 2.5 3253 Agricultural chemicals 1.4 2.1 1.0 -1.2 3.5 -1.8 3254 Pharmaceuticals and medicines -1.2 -1.8 -2.5 -2.2 1.1 2.0 3255 Paints, coatings, and adhesives -1.2 -2.0 -0.8 -2.0 -0.5 -4.6 3256 Soaps, cleaning compounds, and toiletries 0.4 -1.4 0.2 -1.9 3.7 1.0 3259 Other chemical products and preparations -1.3 -1.7 0.1 -0.9 -2.5 -3.6 3261 Plastics products 0.2 -0.8 1.0 0.4 0.0 -2.7 3262 Rubber products 0.7 1.4 1.2 0.9 -0.2 -2.7 3271 Clay products and refractories 0.1 0.7 1.6 0.3 -1.5 -6.9 3272 Glass and glass products 0.7 -0.3 1.7 1.7 -0.5 0.6 3273 Cement and concrete products 0.0 0.5 0.4 0.0 -0.7 -3.5 3274 Lime and gypsum products -0.2 -1.4 -2.4 0.6 1.8 -4.4 3279 Other nonmetallic mineral products 0.8 -1.3 1.9 -0.4 1.9 -0.9 3311 Iron and steel mills and ferroalloy production 1.3 1.3 2.0 1.9 0.3 0.1 3312 Steel products from purchased steel -0.3 1.1 2.3 -0.1 -3.3 1.4 3313 Alumina and aluminum production 0.1 -0.3 -0.7 0.0 1.1 -3.1 3314 Other nonferrous metal production -1.5 -0.6 1.1 -0.3 -5.1 -16.0 3315 Foundries 0.2 0.0 1.5 0.0 -0.5 1.8 3321 Forging and stamping 1.0 -0.7 1.0 0.9 1.8 4.2 3322 Cutlery and hand tools -0.4 -1.4 0.9 -0.4 -0.9 2.5 3323 Architectural and structural metals -0.1 -1.1 0.8 -0.7 0.2 3.1 3324 Boilers, tanks, and shipping containers 0.5 0.5 1.3 0.2 0.0 5.0 3325 Hardware -0.2 -2.2 0.7 -0.2 0.2 0.9 3326 Spring and wire products 0.9 0.4 1.5 0.5 1.0 -3.2 3327 Machine shops and threaded products 1.1 1.0 2.9 0.1 0.4 2.2 3328 Coating, engraving, and heat treating metals 1.3 0.8 2.0 -0.6 2.6 -0.8 3329 Other fabricated metal products 0.1 -1.8 0.2 -0.8 1.7 3.5 3331 Agriculture, construction, and mining machinery 0.7 2.3 -0.2 -1.0 2.0 2.0 3332 Industrial machinery 0.4 0.1 1.5 -0.4 0.3 6.2 3333 Commercial and service industry machinery -0.5 0.8 -0.6 -1.1 -0.5 4.2 3334 HVAC and commercial refrigeration equipment 0.9 -0.3 0.6 0.5 2.0 3.0 3335 Metalworking machinery 0.7 0.0 1.3 -0.9 1.9 -0.1 3336 Turbine and power transmission equipment -0.4 -0.6 -0.1 0.9 -1.7 0.7 3339 Other general purpose machinery 0.4 0.4 0.0 -0.1 1.1 1.7 3341 Computer and peripheral equipment 17.2 5.4 12.6 25.3 21.0 23.9 3342 Communications equipment 3.4 3.7 4.0 3.1 3.0 13.5 3343 Audio and video equipment 2.5 3.7 2.1 0.9 3.7 8.3 3344 Semiconductors and electronic components 14.2 7.1 18.1 22.7 8.1 2.0 3345 Electronic instruments -0.1 1.6 0.0 -3.2 1.6 1.3 3346 Magnetic media manufacturing and reproduction 3.0 1.2 5.8 0.4 3.8 -2.5 3351 Electric lighting equipment 0.3 -1.8 0.1 0.3 1.4 2.2 3352 Household appliances 1.9 -0.4 2.4 1.1 3.3 1.9 3353 Electrical equipment 0.2 0.4 1.8 -2.0 0.7 1.2 3359 Other electrical equipment and components 0.0 -1.8 1.1 0.7 -0.6 -2.1 3361 Motor vehicles 0.6 0.2 -1.4 0.4 2.7 4.6 3362 Motor vehicle bodies and trailers -0.3 -2.9 2.0 -1.9 0.6 1.8 3363 Motor vehicle parts 1.1 -0.8 2.1 0.2 2.2 2.4 3364 Aerospace products and parts -1.0 -2.8 -1.6 -1.4 0.8 0.1 3365 Railroad rolling stock 1.3 2.2 -1.3 4.1 0.6 7.0 3366 Ship and boat building -0.6 0.0 -2.0 -0.4 0.1 1.8 3369 Other transportation equipment 1.4 -1.7 4.2 -0.6 2.3 3.6 3371 Household and institutional furniture 0.1 -0.4 0.7 -0.7 0.7 -1.4 3372 Office furniture and fixtures 0.4 -2.6 0.2 1.7 0.9 -0.2 3379 Other furniture-related products 0.7 0.0 0.6 -0.3 2.1 2.1 3391 Medical equipment and supplies 1.5 2.2 0.2 2.0 1.7 1.4 3399 Other miscellaneous manufacturing 0.7 1.2 0.5 0.0 1.3 1.3 Transportation 481 Air Transportation 1.2 -0.9 0.7 0.0 3.6 3.6 482111 Line-Haul Railroads 2.6 4.4 4.1 1.4 1.6 2.6