capacity utilization rate

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Capacity utilization rate

The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion.

Capacity Utilization Rate

The extent to which a company uses its facilities at capacity, expressed as a percentage. That is, the capacity utilization rate states how much a company produces as a percentage of what it can produce. For example, if a factory produces 1,000 widgets per day but could produce 2,000 for the same cost, it has a capacity utilization rate of 50%. The capacity utilization rate is most useful for companies producing goods rather than services because goods are simply easier to quantify.

capacity utilization rate

the ratio of designed CAPACITY to used capacity.
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References in periodicals archive ?
Once all the samples are in by end of this year, Aldaba expects a higher awareness and utilization rates.
On the other hand, the utilization rates of AKFTA for exports to South Korea from Thailand, Malaysia, and Vietnam were very high and far exceeded other FTAs.
He pointed out that capital spending restraints through the second half of 2012 will also slow new capacity additions, which will push up overall utilization rates to normal levels at the start of 2013.
The table below shows capacity utilization rates on annual basis since 2007.
Seasonal maintenance) has been overshadowed by the lower utilization rates across the board for economic reasons," said Antoine Halff of Newedge Group in New York.
The JAEC's 2008 white paper says that facility utilization rates at Japan's nuclear power plants dropped to a mere 60.
In addition, block storage virtualization provides a central management point for storage administrators to improve utilization rates while lowering administration costs.
The companies have also begun to discuss comprehensive collaboration in development, such as design environments and product development, as well as collaboration in manufacturing to achieve more efficient use of capital investment and increase capacity utilization rates.
In the wake of the recent recovery in manufacturing production, the capacity utilization rates published by the Federal Reserve Board (FRB) have rebounded much more slowly than those published by the Institute for Supply Management (ISM).
Steel mill capacity utilization rates in North America remain healthy, as auto sales, the building industry and other manufacturing sectors experience a mild recovery.
Unisys Storage Sentinel is the first product to enable enterprises with heterogeneous storage environments to increase storage utilization rates by accessing and re-allocating storage capacity from a single, virtualized pool.
Utilization rates in advanced-processing and primary-processing industries fell for the third consecutive month.