Degree of utilization

This article explains the degree of utilization in the economy; For the degree of utilization of a traffic route, see the load quotient .

Under the utilization rate ( English capacity utilization ) is understood in the economics , the ratio between the actual and the potential gross domestic product , expressed in percent . Its counterpart in business administration is the degree of employment , but this is often also referred to as the degree of utilization.

General

The degree of utilization is a relative value because two economic indicators are compared. The actual gross domestic product is the sum of all in a country in a year produced goods and services . The potential gross domestic product is a fictitious quantity that is referred to as the production potential . As an absolute figure, the difference between potential and actual GDP is also called output gap ( English output gap ):

${\displaystyle {\text{Produktionslücke}}={\text{Produktionspotenzial}}-{\text{Bruttoinlandsprodukt}}}$

The degree of capacity utilization compares gross domestic product and production potential and, like gross domestic product, is one of the lagging indicators, while incoming orders are an early indicator.

calculation

To determine the degree of utilization, the gross domestic product is compared to the fictitious production potential : ${\displaystyle BIP}$ ${\displaystyle PP}$

${\displaystyle {\text{Auslastungsgrad}}={\frac {\mathrm {BIP} }{\mathrm {PP} }}\cdot 100\,\%}$

The degree of utilization of an economy increases with constant PP, when the GDP increases and vice versa.

Under, normal and overutilization

Depending on the definition of the production potential, the degree of utilization is limited upwards by or it also assumes values ​​above 1. In the latter case, this means over- utilization, full utilization and under-utilization of economic capacities. ${\displaystyle A}$ ${\displaystyle 1=100\,\%}$ ${\displaystyle A>1}$ ${\displaystyle A=1}$ ${\displaystyle A<1}$

Economic importance

The degree of utilization is an indicator with which the economic phases can be measured. The Advisory Council on the Assessment of Macroeconomic Development stated in 1968: "Economic fluctuations are fluctuations in the degree of utilization of the overall economic production potential." The degree of utilization is therefore a measure of the economic diagnosis . Business cycles result in fluctuations in the degree of capacity utilization . In an upswing , the degree of capacity utilization increases steadily in order to reach its turning point in the boom . After that, capacity utilization drops in the downturn and hits its low point in a recession . The economy and the degree of utilization correlate with each other because, for example, if capacities remain unchanged, the demand for goods and services increases during an upswing , which means that companies increase their production , which in turn leads to improved utilization. The highest utilization rate during the boom ( English Boom ) is full employment called. In economic terms, full employment is not measured solely on the labor market ( production factor labor ), but also by the degree of utilization of machines (production factor capital , physical capital ).

In an economy there is full employment when the occupancy rate is over 96%. Theoretically, there can not be a degree of utilization of 100% due to existing bottlenecks , as there is a lack of harmonization of interdependent capacities in a market economy . For example, if a tire manufacturer has a lower capacity than the automobile manufacturer it supplies alone for its just-in-time production , the greater capacity of the automobile manufacturer is restricted to the lower capacity of the tire manufacturer. The automobile manufacturer could produce more cars, but no tires would be available for the additional production. This individual economic representation is also aggregated on the national economy, so that the maximum degree of utilization of 100% cannot be achieved due to existing bottlenecks.

The degree of utilization of property , plant and equipment in Germany was 84.5% in April 2016 and thus significantly exceeded the long-term average, which is considered to be normal. This suggests that the sharp rise in industrial production in the first quarter of 2016 may, to some extent, indicate that industrial activity is now higher. While the German mechanical engineering sector achieved the highest capacity utilization with 92% in 2007, it fell to a low of 70.7% in 2009, and subsequently rose continuously to a level of over 84% (2015: 84.5%).

Business administration

The economic key figure of the degree of utilization plays a particularly important role in companies with a high proportion of fixed costs . These include automobile construction , shipbuilding and transport companies . The latter differentiate between the weight , volume (spatial), temporal and distance-specific utilization of the means of transport . In the freight business, your degree of utilization is called loading ton kilometers :

${\displaystyle {\text{Ladetonnenkilometer}}={\frac {\text{tatsächliche Ladetonnenkilometer}}{\text{maximal mögliche Ladetonnenkilometer}}}\cdot 100\,\%}$.

The higher the degree of utilization, the lower the idle costs . It therefore makes sense to avoid "empty trips" and also to use the return trip to capacity. In the case of high-volume freight such as electronic equipment , the maximum capacity in terms of weight is not achieved when the volume is fully used, so it makes more sense to select the size volume kilometers.

The time utilization of a means of transport results from the ratio

${\displaystyle {\text{Zeitliche Auslastung}}={\frac {\text{Ist-Zeit des Transportmittels}}{\text{maximal mögliche Zeitnutzung}}}\cdot 100\,\%}$.

In air traffic, a distinction is made between the seat load factor ( passenger aviation ) and the cargo load factor ( air freight ):

${\displaystyle {\text{Sitzladefaktor}}={\frac {\text{verkaufte Sitzplatzkilometer}}{\text{angebotene Sitzplatzkilometer}}}\cdot 100\,\%}$.

On the one hand, the seat load factor indicates whether the air fleet used is being used efficiently or whether the capacity limits are being reached.

${\displaystyle {\text{Nutzladefaktor}}={\frac {\text{verkaufte Tonnenkilometer}}{\text{angebotene Tonnenkilometer}}}\cdot 100\,\%}$.

Seat load factor and load factor are combined to form the load factor. The load factor depends on the productivity of the airline, the type of aircraft used (size) and the tariff mix (share of special tariffs , first class , economy class , etc.). The load factors are suitable for operation comparisons of airlines with each other and are determined annually by the IATA published.

Individual evidence

1. ↑ The Deutsche Bundesbank (Annual Report 1995, p. 141) assumes a potential utilization of 100% on average when calculating the production potential, while the Council of Economic Experts (Annual Report 1991/1992, 1991, p. 268 f.) Assumes a maximum achievable potential an average utilization of 96.5%.
2. ^ Reinhold Sellien, Helmut Sellien: Gablers Wirtschafts-Lexikon. Volume 1, 12th Edition, 1988, Col. 462.
3. ↑ Advisory Council on the Assessment of Overall Economic Development: Annual Report 1968/1969. 1968, p. 9.
4. ^ Matthias Premer: Fundamentals of Economics. 2015, p. 143.
5. ↑ Horst Siebert, Oliver Lorz: Introduction to Economics. 1969, p. 341.
6. ↑ Deutsche Bundesbank: Monthly Report May 2016. P. 54.
7. ↑ Statista - The Statistics Portal: Capacity Utilization in German Mechanical Engineering 2015.
8. ↑ Gerd Aberle, Transportwirtschaft: Individual economic and macroeconomic foundations , 2003, p. 25
9. ↑ Gerd Aberle, Transportwirtschaft: Individual economic and macroeconomic foundations , 2003, p. 26