Capacity Utilization Rate

Benchmarking Report

Capacity Utilization Rate

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Capacity Utilization Rate. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Capacity Utilization Rate?

The actual number of units produced (i.e., actual output) by the company, or within a single manufacturing facility/plant, divided by the number of units that could have been produced over the same period of time if the operation was running at full capacity (i.e., potential output), as a percentage.

Why should Capacity Utilization Rate be measured?

Manufacturing Capacity Utilization Rate is a vital KPI that measures actual versus potential output within a manufacturing facility or company (i.e., across all facilities managed by the organization), or sometimes within the economy as a whole. On a macroeconomic level, Capacity Utilization Rate is an indicator of economic productivity that speaks to overall demand and how that impacts activity within the manufacturing sector. At the operational level (i.e., within or across a company's manufacturing sites), this KPI can be used to assess the efficiency and allocation of production capacity (e.g., facility A is operating at 85% capacity, while facility B is only at 65% - why is this?). Capacity utilization can also be used at the operational level to determine whether or not existing manufacturing capacity is sufficient to meet forecasted demand (e.g., the facility is currently operating at 70% and we expect a 25% increase in demand; there is an additional 30% capacity available to meet that demand).

Download a Sample Capacity Utilization Rate

Frequently Asked Questions

Q: How do you collect and validate your data?

A: From real-world consulting engagements with Fortune 500 leaders. We’ve spent 25 years conducting original research and anonymizing data from our engagements with top companies around the world. Every single data point we collect is scrutinized by our analysts to conform to established baselines and our rigorous in-house validation process. We won’t serve it up to you unless it meets our tough standards for utility and value.

Q: How much information will my Benchmarking Report contain?

A: Enough to produce a useful benchmark. And rest assured that it’s all current, validated, and useful. We only include data that’s been collected in the last five years. And while sample sizes vary by KPI, the average is 25, and the high end can surpass 1,000.

Q: How often do you update your reports?

A: Every year. We’re constantly gathering, scouring, and processing new data. We update our reports based on trends our analysts detect in the data, as well as the demand from our consulting clients and customers like you.

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