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Manufacturing multifactor productivity, 1987 to 2013

August 06, 2015

Multifactor productivity in manufacturing increased at a 1.2-percent annual rate from 1987 to 2013. Multifactor productivity measures changes in efficiency. It shows how much the output of an industry changes for each unit of capital and labor inputs. Output increased at an annual rate of 2.2 percent from 1987 to 2013. That was faster than the 1.0-percent increase in combined inputs of labor, capital services, energy, materials, and purchased business services. In 2013, multifactor productivity decreased at an annual rate of 0.7 percent. The decline reflected a 1.5-percent increase in output and a 2.1-percent increase in combined inputs.

Annual growth rates in multifactor productivity for manufacturing industries, 1987–2013
Industry 1987-2013 2012-2013 2007-2013 2000-2007 1995-2000 1990-1995 1987-1990

Manufacturing

1.2% -0.7% -0.2% 1.9% 2.1% 1.3% 0.4%

Nondurable manufacturing

0.2 0.3 -0.4 0.7 -0.1 0.6 -0.3

Food beverage and tobacco products

-0.2 -0.1 -0.5 0.6 -1.7 1.4 -1.5

Textile mills and textile product mills

0.8 3.0 -0.3 1.0 1.6 0.7 1.3

Apparel, leather, and allied products

0.0 9.4 -5.6 2.5 0.8 3.0 0.1

Paper products

0.2 2.1 0.3 0.6 0.2 0.0 -0.3

Printing and related support activities

1.2 3.3 1.5 2.6 0.2 -0.2 0.9

Petroleum and coal products

0.8 3.0 0.5 0.4 1.6 0.7 0.7

Chemical products

-0.6 -3.3 -1.9 0.9 -0.4 -1.0 -0.8

Plastics and rubber products

0.7 -0.2 0.6 0.2 1.5 0.4 0.8

Durable manufacturing

1.9 -1.8 0.1 2.7 3.4 1.7 1.0

Wood products

0.1 -5.1 0.3 0.9 -0.5 -1.5 1.4

Nonmetallic mineral products

0.2 1.0 0.0 0.0 0.3 0.8 0.2

Primary metals

0.4 1.7 -0.6 0.6 1.0 0.0 1.3

Fabricated metal products

0.1 -0.6 -1.0 0.6 -0.2 0.9 0.0

Machinery

-0.3 -5.9 -1.1 1.5 -1.1 -2.0 1.2

Computer and electronic products

8.5 -1.1 4.1 7.5 15.6 10.2 5.7

Electrical equipment, appliances, and components

-0.7 -0.8 -0.3 1.9 -2.6 -2.5 -1.7

Transportation equipment

0.2 -1.7 -0.6 1.9 0.4 -0.1 -1.5

Furniture and related products

0.2 0.7 -0.2 0.4 0.7 0.4 -0.4

Miscellaneous manufacturing

0.8 2.7 0.0 1.1 1.2 -0.1 2.7

From 1987 to 2013, multifactor productivity in nondurable goods manufacturing increased at an annual rate of 0.2 percent. Within nondurable manufacturing, multifactor productivity in printing and related support activities increased 1.2 percent. In 2013, multifactor productivity in nondurable goods manufacturing increased 0.3 percent. This increase followed a 0.8-percent decrease in 2012.

In durable goods manufacturing, multifactor productivity increased at an annual rate of 1.9 percent from 1987 to 2013. Multifactor productivity in computer and electronic products increased at an annual rate of 8.5 percent. Multifactor productivity in durable goods manufacturing decreased 1.8 percent in 2013, following a 0.8-percent decrease in 2012.

These data are from the Multifactor Productivity program. To learn more, see “Multifactor Productivity Trends in Manufacturing — 2013” (HTML) (PDF). Multifactor productivity measures the joint influences of technological change, efficiency improvements, returns to scale, reallocation of resources, and other factors on economic growth, allowing for the effects of capital and labor.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Manufacturing multifactor productivity, 1987 to 2013 at https://www.bls.gov/opub/ted/2015/manufacturing-multifactor-productivity-1987-to-2013.htm (visited December 10, 2024).

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