Factory Utilization

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Factory Utilization

The factory utilization page in the world trade section shows the number of factories in the world that producing each product, the production capacity (at 100% production level), the actual production last month and the percentage of utilization of factories per product. The table also shows the orders last month and the surplus or shortage per product.

Low utilization levels for some products have several possible reasons. The product may be in over supply, which causes many of the corporations to reduce production. Raw materials for the production of a specific product may be in short supply. If this happens, factories do not receive the raw materials they need and reduce or even stop their own production. Example: if oil is in short supply, gasoline may follow. If services are in short supply, many corporations may follow as services are used in nearly every type of industry.

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