capacity utilization

USAGE SUMMARY

'capacity utilization' is correct and usable in written English.
You can use it when referring to the amount of available capacity that is being used by a company, organization, product, or service. For example, "After the manufacturing plant opened a new wing, the capacity utilization increased by 20%."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Industrial production and capacity utilization expand.

The New York Times

Industrial production and capacity utilization for July.

The New York Times

Capacity utilization wasn't under any great pressure.

The Washington Post

Capacity utilization in technology is at a 35-year low.

The New York Times

Capacity utilization rose to 70.5percentt last month from August.

The New York Times

This has implications for capacity utilization and capital efficiency.

Harvard Business Review

We should be able to get higher capacity utilization rates.

Harvard Business Review

Meanwhile, U.S. manufacturing capacity utilization fell from 84.2%to78.8%84.2%to78.8%

Harvard Business Review

Industrial Production -- April Capacity Utilization -- April TUESDAY Consumer Price Index -- April Housing Construction -- April WEDNESDAY None.

The New York Times

Our capacity utilization during the crisis was among the highest in California among all the generators".

The New York Times

Capacity utilization has plunged to its lowest level in years, and unemployment is rising steadily.

The New York Times

Expert writing Tips

Best practice

When discussing economic performance or industrial activity, use "capacity utilization" to provide a clear metric of how fully resources are being employed. For instance, compare capacity utilization rates across different sectors or time periods to highlight economic trends.

Common error

Don't mistake "capacity utilization" for total output. A high "capacity utilization" rate doesn't necessarily mean high output; it simply indicates that the existing capacity is being used efficiently. Low capacity with high utilization still results in low overall output.

Linguistic Context

The phrase "capacity utilization" functions as a noun phrase, typically used as a subject or object in sentences. It serves to quantify the extent to which available resources are being actively employed, aligning with Ludwig's examples that show it often relates to industrial output or economic performance.

Expression frequency: Very common

Frequent in

News & Media

45%

Formal & Business

25%

Science

20%

Less common in

Academia

5%

Encyclopedias

3%

Reference

2%

Ludwig's WRAP-UP

In summary, "capacity utilization" is a frequently used noun phrase that quantifies how well resources are being used. Ludwig AI indicates that it is grammatically correct and widely applicable across various sectors, especially in the realm of business, economics, and industrial output. It is seen as a neutral and professional term. Keep in mind that mistaking "capacity utilization" for total output is a common error, as the rate only indicates efficiency, not necessarily high overall output. Related phrases such as "operating rate" and "resource utilization" provide alternative ways to express similar ideas, allowing for greater precision in writing. Overall, knowing the term and its use cases will surely improve your vocabulary.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

plant utilization

Focuses specifically on the utilization of a plant's capacity.

facility utilization

Similar to plant utilization, but can refer to a broader range of facilities.

production capacity usage

Specifically highlights the usage of capacity in the context of production.

operational capacity

Focuses on the capacity that is actually operational, rather than the potential capacity.

operating rate

Focuses on the rate at which a system or device is operating, rather than the percentage of its potential.

resource utilization

Broader term encompassing the use of various resources, not just capacity.

asset utilization

Highlights how assets are being used to generate value, including the capacity.

efficiency rate

Emphasizes the efficiency of the process, rather than the proportion of capacity being used.

throughput rate

Highlights the rate at which something is processed or produced, implying capacity use.

workload management

Focuses on managing the workload to optimize the usage of available capacity.

FAQs

What does "capacity utilization" mean in economics?

In economics, "capacity utilization" refers to the extent to which an economy or firm is using its installed productive capacity. It is expressed as a percentage of total potential output and is an indicator of economic activity and inflationary pressure.

How is "capacity utilization" calculated?

"Capacity utilization" is calculated by dividing actual output by potential output and multiplying by 100 to express it as a percentage. It reflects how much of the available productive capacity is currently being used.

What is a good "capacity utilization" rate?

A "good" "capacity utilization" rate typically ranges from 82% to 85%. A rate significantly below this may indicate economic slack, while a rate consistently above it may suggest inflationary pressures.

What factors can affect "capacity utilization"?

Factors affecting "capacity utilization" include changes in demand, technological advancements, economic cycles, and supply chain disruptions. For example, a decrease in demand might lead to a lower "operating rate", whereas technological improvements could boost potential output.