Last Updated: February 22, 2026
75+ Manufacturing Productivity Statistics for 2025-2026
How productive is US manufacturing, and how efficiently is the sector using its installed capacity? These are the questions plant managers, economists, investors, and policy analysts are constantly trying to answer. The data matters, whether you are benchmarking your own facility's performance, forecasting capital investment, or analyzing where the sector is headed.
We compiled over 75 manufacturing productivity statistics from the Bureau of Labor Statistics, the Federal Reserve Board, the Bureau of Economic Analysis, the National Association of Manufacturers, and NIST. This includes the latest capacity utilization rates broken down by industry subsector, the industrial production index through January 2026, quarterly labor productivity changes, long-run output trends, and the sector's overall contribution to the US economy. Every number links to its original source.
$2.95T
Manufacturing value added (Q3 2025 annual rate)
75.6%
Manufacturing capacity utilization (Jan 2026)
+3.7%
Manufacturing labor productivity growth (Q3 2025)
2.1%
Annual productivity growth rate, manufacturing, 1990-2024
What's in This Report
- Manufacturing Sector Output Overview
- Capacity Utilization: Overall Trends
- Capacity Utilization by Industry Subsector
- Industrial Production Index
- Labor Productivity & Output per Hour
- Total Factor Productivity
- Long-Run Productivity Trends (1990-2024)
- Unit Labor Costs
- Global Manufacturing Output Context
- Economic Multiplier & Broader Impact
Manufacturing Sector Output Overview
US manufacturing is one of the largest and most productive sectors in the global economy. The sector generated nearly $3 trillion in annual value-added output in 2025, making it a central pillar of US economic strength. These headline figures set the context for understanding where productivity and capacity data fit in.
1. Manufacturers contributed $2.951 trillion at the annual rate to the US economy in Q3 2025, up from $2.860 trillion in Q2 2025. — Bureau of Economic Analysis, via NAM (updated Feb 2026)
2. Durable goods manufacturing accounted for $1.576 trillion of that total (Q3 2025, annual rate), up from $1.534 trillion in Q2 2025. — NAM / BEA
3. Nondurable goods manufacturing accounted for $1.375 trillion (Q3 2025, annual rate), up from $1.325 trillion in Q2 2025. — NAM / BEA
4. Manufacturing accounted for 9.5% of total US value-added output in Q3 2025. — NAM / BEA
5. Manufacturing value added in 2023 was $2.3 trillion in chained 2017 dollars, representing 10.2% of GDP. Real value added in manufacturing grew 0.6% between 2022 and 2023. — NIST Annual Report on the U.S. Manufacturing Economy: 2024
6. US manufacturing would rank as the eighth-largest economy in the world if measured as a standalone nation, with $2.91 trillion in value added in 2024, surpassed only by the US itself, China, Germany, Japan, India, the United Kingdom, and France. — NAM (updated Oct 2025)
7. There were 12,692,000 manufacturing workers in December 2025, close to the pre-pandemic average of 12,613,000 (2017-2019). — Bureau of Labor Statistics, Employment Situation
8. Manufacturing employees earned an average of $106,691 in total compensation (pay plus benefits) in 2024, compared to $90,601 for all private nonfarm workers. — NAM / BEA / BLS
9. Average hourly earnings for all manufacturing employees reached $36.07 in December 2025, a 4.4% increase year-over-year. — Bureau of Labor Statistics
10. US manufactured goods exports totaled $1.647 trillion in 2024, an all-time record, with durable goods exports alone hitting $1.048 trillion. — NAM / US Census Bureau
Capacity Utilization: Overall Trends
Capacity utilization is the ratio of actual production to the maximum output a facility or sector could theoretically produce. It is one of the Federal Reserve's most-watched leading indicators. A rate consistently below the long-run average signals slack in the economy. A rate pushing toward historical highs often precedes capital investment or inflation in goods prices.
Key Benchmark
Manufacturing's long-run average capacity utilization (1972-2025) is 78.2%. As of January 2026, the sector is operating at 75.6%, which is 2.6 percentage points below that long-run norm.
11. Manufacturing capacity utilization stood at 75.6% in January 2026, up from 75.2% in December 2025 and from 74.6% in January 2025. — Federal Reserve G.17, February 2026
12. The long-run average capacity utilization for manufacturing (1972-2025) is 78.2%. The current rate of 75.6% is 2.6 percentage points below that benchmark. — Federal Reserve G.17
13. Total industry capacity utilization (manufacturing, mining, and utilities combined) rose to 76.2% in January 2026, up from 75.7% in December 2025. — Federal Reserve G.17
14. The all-time high for manufacturing capacity utilization in the Federal Reserve's data series was approximately 85.5%, reached during the 1988-1989 expansion. — Federal Reserve / FRED (CUMFNS)
15. The post-WWII low for manufacturing capacity utilization was 63.4%, reached during the trough of the 2008-2009 Great Recession. — Federal Reserve / FRED
16. Manufacturing capacity utilization peaked at 78.4% in 2021, nearly matching its long-run average as post-pandemic demand surged, before declining to current levels. — Federal Reserve Annual Revision (2025)
17. Mining capacity utilization was 84.4% in January 2026, 0.8 percentage points below its long-run average. — FRED / Federal Reserve, January 2026
18. Utilities capacity utilization was 72.9% in January 2026, 11.1 percentage points below its long-run average. — FRED / Federal Reserve, January 2026
Capacity Utilization by Industry Subsector
The headline manufacturing capacity utilization figure masks wide variation by industry. Petroleum refining and electrical equipment run close to full capacity, while motor vehicles, primary metals, and wood products have significant slack. Knowing where your industry sits relative to capacity helps with investment timing, pricing power analysis, and supply chain risk assessment.
Durable Goods Manufacturing (January 2026)
| Industry | Jan 2026 | Dec 2025 | Jan 2025 |
|---|---|---|---|
| Durable manufacturing (total) | 74.1% | 73.6% | 72.2% |
| Electrical equipment, appliances & components | 86.4% | 86.2% | 86.7% |
| Machinery | 81.0% | 80.1% | 77.8% |
| Nonmetallic mineral products | 80.1% | 78.3% | 79.3% |
| Miscellaneous durable goods | 77.0% | 76.1% | 77.8% |
| Fabricated metal products | 76.4% | 76.3% | 74.1% |
| Computer & electronic products | 74.9% | 74.6% | 75.2% |
| Aerospace & miscellaneous transportation | 72.7% | 73.0% | 67.3% |
| Furniture & related products | 68.4% | 67.9% | 69.2% |
| Wood products | 67.7% | 67.3% | 72.2% |
| Primary metals | 67.5% | 67.1% | 65.9% |
| Motor vehicles & parts | 64.8% | 63.9% | 61.2% |
Source: Federal Reserve / FRED, January 2026 release. Seasonally adjusted.
Nondurable Goods Manufacturing (January 2026)
| Industry | Jan 2026 | Dec 2025 | Jan 2025 |
|---|---|---|---|
| Nondurable manufacturing (total) | 77.1% | 76.9% | 77.2% |
| Petroleum & coal products | 89.7% | 89.9% | 90.3% |
| Food, beverage & tobacco products | 79.2% | 79.5% | 78.9% |
| Paper | 77.4% | 76.7% | 81.0% |
| Plastics & rubber products | 74.6% | 73.6% | 72.2% |
| Chemicals | 74.0% | 73.4% | 74.4% |
| Printing & support | 71.2% | 70.7% | 72.9% |
| Textile & product mills | 70.9% | 71.1% | 71.0% |
| Apparel & leather | 68.1% | 68.4% | 68.5% |
Source: Federal Reserve / FRED, January 2026 release. Seasonally adjusted.
19. Petroleum and coal products led all manufacturing subsectors in January 2026 with a 89.7% utilization rate, though this was slightly below the 90.3% rate from January 2025. — FRED / Federal Reserve
20. Motor vehicles and parts had the lowest durable goods capacity utilization at 64.8% in January 2026, but was improving year-over-year from 61.2% in January 2025. — FRED / Federal Reserve
21. Aerospace and miscellaneous transportation equipment utilization jumped to 72.7% in January 2026, up from 67.3% in January 2025, reflecting production ramp-ups. — FRED / Federal Reserve
22. Selected high-technology industries operated at 71.3% capacity in January 2026, down sharply from 76.5% in January 2025 as the sector worked through excess inventory. — FRED / Federal Reserve
23. Computers and peripheral equipment ran at 80.8% capacity in January 2026, a notable increase from 74.7% a year earlier, reflecting AI-driven hardware demand. — FRED / Federal Reserve
Industrial Production Index
The Federal Reserve's Industrial Production (IP) Index measures real output for manufacturing, mining, and utilities. The index is set to a 2017 average of 100, so values above 100 indicate output is above 2017 levels. It is published monthly and is one of the most widely used coincident indicators of US economic activity.
24. The total industrial production index reached 102.3 in January 2026 (2017=100), a 2.3% increase from January 2025. — Federal Reserve G.17, February 18, 2026
25. The manufacturing-specific IP index stood at 97.5 in January 2026, a 2.4% increase from January 2025. Manufacturing output is still running below the 2017 baseline on an index basis. — Federal Reserve G.17
26. Manufacturing output advanced 0.6% in January 2026, the largest single-month increase since February 2025, with widespread gains across industry groups. — Federal Reserve G.17
27. Durable goods manufacturing output rose 0.8% in January 2026, with gains in nearly all component industries. Industries logging increases of at least 1% included nonmetallic mineral products, machinery, computer and electronic products, and motor vehicles. — Federal Reserve G.17
28. Nondurable goods manufacturing output rose 0.4% in January 2026, driven by gains in paper, printing, chemicals, and plastics and rubber products, partially offset by declines in other industries. — Federal Reserve G.17
29. Manufacturing output rose 0.2% in December 2025 but declined at an annualized rate of 0.7% over the entire fourth quarter of 2025. — Federal Reserve G.17
30. Business equipment production rose 0.9% in January 2026 with gains in all market categories. The business equipment IP index (93.9 to 96.4 from August 2025 to January 2026) was up 9.3% year-over-year. — Federal Reserve G.17
31. Manufacturing industrial capacity is projected to grow 1.0% in 2026, following 1.1% growth in 2025. Total industrial capacity (including mining and utilities) is expected to increase 1.1% in 2026. — Federal Reserve G.17 preliminary 2026 estimates
Labor Productivity and Output per Hour
Manufacturing labor productivity measures how much output is produced per hour worked. When productivity rises, manufacturers can produce more without proportionally more labor, which supports wage growth without triggering inflation. Productivity gains are the foundation of long-run improvements in living standards and competitiveness.
Q3 2025 Headline
Manufacturing sector labor productivity increased 3.7% in the third quarter of 2025 (revised), as output increased 3.0% and hours worked decreased 0.7%. This is the most recent BLS quarterly productivity estimate as of publication.
32. Manufacturing sector labor productivity increased 3.7% in Q3 2025 (revised), as output increased 3.0% and hours worked decreased 0.7%. — Bureau of Labor Statistics, Productivity and Costs (Q3 2025 Revised)
33. Durable manufacturing sector productivity increased 5.4% in Q3 2025, reflecting a 3.6% increase in output and a 1.7% decrease in hours worked. — Bureau of Labor Statistics, Productivity and Costs (Q3 2025 Revised)
34. Nondurable manufacturing sector productivity increased 1.3% in Q3 2025, as output increased 2.3% and hours worked increased 1.0%. — Bureau of Labor Statistics, Productivity and Costs (Q3 2025 Revised)
35. In Q2 2025, nondurable manufacturing productivity increased 1.2%, as output increased 0.5% and hours worked decreased 0.7%. — Bureau of Labor Statistics, Q2 2025 Productivity
36. In Q4 2024, manufacturing sector productivity edged slightly positive, as output decreased 1.3% and hours worked decreased 1.6%, meaning fewer hours were cut than output. — Bureau of Labor Statistics, Q4 2024 Productivity
37. Durable manufacturing productivity decreased 1.1% in Q4 2024, with output falling 3.2% and hours worked falling 2.1%, a steeper output decline than hours cut. — Bureau of Labor Statistics, Q4 2024 Productivity
38. Since the start of the current business cycle (2019 through Q3 2025), manufacturing labor productivity grew at an annualized rate of 0.4%, with output increasing 0.1% and hours declining 0.3%. — Bureau of Labor Statistics
39. FRED tracks Manufacturing Sector Output per Worker (series PRS30006162) from 1987 through the present, showing a decades-long upward trend in output generated per manufacturing employee. — Federal Reserve Bank of St. Louis / FRED
Manufacturing Productivity by Quarter: Recent Trend
| Period | Productivity | Output | Hours Worked |
|---|---|---|---|
| Q3 2025 (Revised) — Manufacturing | +3.7% | +3.0% | -0.7% |
| Q3 2025 (Revised) — Durable Mfg | +5.4% | +3.6% | -1.7% |
| Q3 2025 (Revised) — Nondurable Mfg | +1.3% | +2.3% | +1.0% |
| Q2 2025 — Nondurable Mfg | +1.2% | +0.5% | -0.7% |
| Q4 2024 — Manufacturing | ~+0.3% | -1.3% | -1.6% |
| Q4 2024 — Durable Mfg | -1.1% | -3.2% | -2.1% |
Source: Bureau of Labor Statistics, Productivity and Costs releases.
Total Factor Productivity
Total factor productivity (TFP), sometimes called multifactor productivity, measures output growth that cannot be explained by growth in capital or labor alone. It captures efficiency gains from better technology, improved processes, and organizational improvements. TFP is considered the most comprehensive measure of how efficiently all inputs are being used.
40. Total factor productivity in the private nonfarm business sector increased 1.3% in 2024, reflecting a 2.9% increase in output and a 1.6% increase in combined capital and labor inputs. — Bureau of Labor Statistics, Total Factor Productivity 2024
41. Private nonfarm business labor productivity increased 2.7% in 2024, the largest annual increase since 2004 outside of years immediately following a recession. — Bureau of Labor Statistics, Total Factor Productivity 2024
42. Capital input in 2024 grew 2.9%, driven by growth in intellectual property products (especially R&D and pre-packaged software). Hours worked grew only 0.2% in 2024. — Bureau of Labor Statistics, Total Factor Productivity 2024
43. TFP grew at an average annual rate of 0.9% in the 2019-2024 business cycle, faster than the 0.6% TFP growth in the prior 2007-2019 cycle. — Bureau of Labor Statistics, Total Factor Productivity 2024
44. Intellectual property products were the main driver of capital input growth in 2023, contributing 1.7 percentage points of the 2.7% total capital input growth, representing nearly two-thirds of all capital growth. — Bureau of Labor Statistics
Long-Run Manufacturing Productivity Trends (1990-2024)
The manufacturing sector's productivity story over the past three decades is one of consistent gains even as hours worked declined. Unlike most service sectors, manufacturing has achieved its output growth almost entirely through productivity improvements rather than employment expansion. This structural shift has profound implications for competitiveness, capital investment strategy, and workforce planning.
| Business Cycle Period | Nonfarm Output Growth | Hours Worked | Productivity |
|---|---|---|---|
| 1990-2000 (boom decade) | 4.0% | 1.7% | 2.2% |
| 2000-2007 (jobless recovery) | 2.7% | 0.1% | 2.6% |
| 2007-2019 (pre-pandemic) | 2.1% | 0.6% | 1.5% |
| 2019-2024 (current cycle) | 2.6% | 0.5% | 2.1% |
Source: BLS Monthly Labor Review: "Industry Growth Patterns," 2025.
45. Over the full 1990-2024 period, manufacturing output grew at 1.2% per year, while hours worked declined 0.9% per year. The gap was closed by 2.1% annual productivity growth. — BLS Monthly Labor Review (2025)
46. Manufacturing is categorized by BLS as a "productivity-driven growth" sector, meaning productivity gains, not hours expansion, are the primary driver of output. This distinguishes it from service sectors like accommodation and food services. — BLS Monthly Labor Review (2025)
47. Motor vehicle manufacturing averaged 2.1% annual output growth from 1990 to 2024, with hours worked growing modestly at 0.5% and productivity growing 1.6% annually. — BLS Monthly Labor Review (2025)
48. In the 2019-2024 period, productivity grew more than four times as fast as hours worked in the nonfarm business sector, a ratio that had never been sustained for a full cycle outside the post-pandemic recovery. — BLS Monthly Labor Review (2025)
49. Utilities averaged 1.2% annual output growth (1990-2024) with hours declining 0.6% per year and productivity growing 1.8%, a pattern very similar to manufacturing. — BLS Monthly Labor Review (2025)
Unit Labor Costs in Manufacturing
Unit labor costs (ULC) measure the average cost of labor per unit of output. When ULC rises, it signals that wage growth is outpacing productivity gains, which can compress margins or push prices higher. When ULC falls, productivity improvements are absorbing wage increases. This metric is closely watched by manufacturers, economists, and central bankers as an input to inflation forecasting.
50. Manufacturing unit labor costs increased 1.2% year-over-year as of Q3 2025, meaning wage growth slightly outpaced productivity gains on an annual basis. — Bureau of Labor Statistics, Productivity and Costs (Q3 2025)
51. Average hourly earnings for production and nonsupervisory manufacturing workers reached $29.51 in December 2025, up 4.2% year-over-year. — Bureau of Labor Statistics, Employment Situation (January 2026)
52. When productivity grew 3.7% in Q3 2025 while wages grew at a moderate rate, unit labor costs in that quarter fell, providing manufacturers with improved margin per unit of output. — Bureau of Labor Statistics, Productivity and Costs
Global Manufacturing Output Context
The US remains the world's second-largest manufacturer by value added, though China's lead has grown substantially. Understanding where the US sits globally is essential for competitive analysis, supply chain strategy, and trade policy discussions.
| Country | Share of Global Mfg Value Added |
|---|---|
| China | 31.0% |
| United States | 15.1% |
| Japan | 6.6% |
| Germany | 4.9% |
| South Korea | 3.1% |
| India | 3.1% |
| United Kingdom | 1.9% |
| Italy | 1.9% |
| Mexico | 1.8% |
| France | 1.8% |
| Top 10 Total | 71.0% |
Source: NIST Annual Report on the U.S. Manufacturing Economy: 2024.
53. The top 10 manufacturing nations accounted for $10.7 trillion, or 71.0% of global manufacturing value added. — NIST Annual Report on the U.S. Manufacturing Economy: 2024
54. Global trade in manufactured goods reached $15.8 trillion in 2024, up from $15.5 trillion in 2023 and nearly triple the $4.7 trillion volume recorded in 2000. — NAM / World Trade Organization
55. The United States' share of world trade in manufactured goods was 7.9% in 2024, reflecting the country's position as both a major exporter and the world's largest goods importer. — NAM / World Trade Organization
56. US manufactured goods exports have more than doubled since 2002, growing from $622 billion to $1.647 trillion in 2024, a 2.6x increase over 22 years. — NAM / US Census Bureau
Economic Multiplier and Broader Impact
Manufacturing generates economic ripple effects that extend well beyond the factory floor. The sector's multiplier effect, supply chain linkages, and R&D intensity make it a disproportionate contributor to economic health relative to its GDP share.
57. For every $1.00 spent in manufacturing, there is a total impact of $2.64 to the overall US economy, including indirect and induced effects. This is one of the largest multipliers of any economic sector. — NAM calculations using 2023 IMPLAN data
58. For every one worker employed in manufacturing, 4.8 workers are added in the broader US economy through indirect and induced impacts. — NAM calculations using 2023 IMPLAN data
59. For every $1.00 earned in direct manufacturing labor income, $3.92 in additional labor income is generated across the broader US economy. — NAM calculations using 2023 IMPLAN data
60. Manufacturing accounts for the majority of private-sector R&D spending in the United States. The sector's investment in research and development underpins a large share of US patent activity and technological innovation. — NAM
61. There were 239,265 manufacturing firms in the US in 2022, with 93.1% employing fewer than 100 workers. Despite this, 59.1% of all manufacturing employees work for firms with 500 or more employees. — US Census Bureau, Statistics of US Businesses (via NAM)
62. Manufacturing workers are eligible for health insurance at a higher rate than any other sector: 95% of manufacturing employees were eligible for employer-provided health benefits in 2025, compared to 80% across all industries. — Kaiser Family Foundation, Employer Health Benefits 2025 Annual Survey
63. Manufacturing had 403,000 job openings in November 2025, below the pre-pandemic (2017-2019) average of 432,000 openings per month and well below the 2021-2023 average of 756,000. — Bureau of Labor Statistics, JOLTS
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Sources
- Federal Reserve G.17: Industrial Production and Capacity Utilization — Monthly release covering manufacturing, mining, and utilities output and capacity utilization. Released February 18, 2026.
- FRED: Capacity Utilization by Industry (January 2026) — Federal Reserve Bank of St. Louis Economic Data, detailed subsector capacity utilization tables.
- BLS: Productivity and Costs, Q3 2025 (Revised) — Bureau of Labor Statistics quarterly labor productivity release for manufacturing and nonfarm business sectors.
- BLS: Total Factor Productivity, 2024 — Annual release covering multifactor productivity, capital input, and labor composition for the private business sector.
- BLS Monthly Labor Review: Industry Growth Patterns (2025) — Comprehensive analysis of output, productivity, and hours worked by sector from 1990 to 2024.
- NAM: Facts About Manufacturing (Updated Oct/Nov 2025) — National Association of Manufacturers regularly updated compilation of key manufacturing statistics.
- NIST: Annual Report on the U.S. Manufacturing Economy: 2024 — Comprehensive annual analysis of US and global manufacturing performance including value-added data and global rankings.
- FRED: Manufacturing Sector Output per Worker (PRS30006162) — Long-run time series of manufacturing output per worker from the St. Louis Fed.
- BLS: Employment Situation (January 2026) — Monthly employment, wages, and hours data for manufacturing and all industries.
- BLS: Job Openings and Labor Turnover Survey (JOLTS) — Monthly data on manufacturing job openings, hires, and separations.
- Kaiser Family Foundation: Employer Health Benefits 2025 Annual Survey — Annual survey on employer-sponsored health insurance eligibility and costs by industry.
- US Census Bureau: Statistics of US Businesses — Annual data on the number and size distribution of manufacturing firms.