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Multifactor productivity up 11.8 percent in turbine and power transmission equipment in 2018

September 01, 2020

Multifactor productivity increased 11.8 percent in turbine and power transmission equipment manufacturing in 2018. Combined inputs in the industry increased 6.1 percent while output increased 18.7 percent. Multifactor productivity measures an industry’s output per unit of combined inputs. Multifactor productivity increased more than 7.0 percent in four other manufacturing industries: electric lighting equipment; agriculture, construction, and mining machinery; rubber products; and leather and hide tanning and finishing.

Percent change in multifactor productivity, output, and combined inputs, selected industries, 2017–18
Industry Combined inputs Output Multifactor productivity

Turbine and power transmission equipment

6.1% 18.7% 11.8%

Electric lighting equipment

0.4 10.3 9.9

Agriculture, construction, and mining machinery

8.9 19.2 9.4

Rubber products

0.5 9.9 9.4

Leather and hide tanning and finishing

-14.9 -8.7 7.4

Computer and peripheral equipment

-10.5 -4.3 6.9

Electrical equipment

5.9 12.7 6.4

Medical equipment and supplies

0.0 5.8 5.8

Animal slaughtering and processing

-0.3 4.6 4.9

Aerospace products and parts

1.1 5.8 4.6

Agricultural chemicals

1.6 -2.2 -3.8

Accessories and other apparel

7.5 3.3 -3.9

Seafood product preparation and packaging

0.0 -4.1 -4.1

Iron and steel mills and ferroalloys

8.7 3.5 -4.8

Pharmaceuticals and medicines

-6.0 -10.6 -4.9

Alumina and aluminum production

9.1 3.1 -5.5

Ship and boat building

9.1 2.9 -5.7

Fiber, yarn, and thread mills

-1.6 -7.4 -5.8

Railroad rolling stock

-13.8 -19.0 -6.1

Plywood and engineered wood products

2.7 -5.9 -8.3

Multifactor productivity declined by 5.0 percent or more in 5 manufacturing industries in 2018. The largest productivity decline, −8.3 percent, occurred in plywood and engineered wood products, as combined inputs increased 2.7 percent, while output changed by −5.9 percent.

Of the 12 manufacturing industries with employment of over 325,000, multifactor productivity increased the most in medical equipment and supplies (+5.8 percent), as output increased while combined inputs was unchanged. Output growth occurred in all but 1 of the 12 industries; In bakeries and tortilla products, combined inputs was flat, leading to a decline in multifactor productivity.

Multifactor productivity rose in 44 of the 86 manufacturing industries measured in 2018. This number was up from 2017, when multifactor productivity increased in 32 manufacturing industries. Multifactor productivity rose in both of the transportation industries measured in 2018, just as in 2017.

These data are from the Productivity program. To learn more, see "Multifactor Productivity Trends for Detailed Industries — 2018." Multifactor productivity is calculated by dividing an index of real output by an index of combined units of labor input and capital services. Unlike BLS quarterly labor productivity (output per hour worked) measures, multifactor productivity measures include the influences of capital services and shifts in the composition of the workforce.


Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Multifactor productivity up 11.8 percent in turbine and power transmission equipment in 2018 at (visited July 01, 2022).


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