Measurement and Interpretation of Productivity (1979) / Chapter Skim
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Productivity Measurement in the Men's and Boy's Clothing Industry
Productivity Measurement in the Men's and Boy's Clothing Industry
Pages 423-444
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From page 423... ...
. Indexes of output can be constructed using physical units combined with some form of weight or using deflated values.
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From page 424... ...
However, the output data from these surveys are available only in four broad product classesmen's suits, men's overcoats and topcoats, men's tailored dress and sport coats, and boys' suits, coats, and tailored jackets. Information in this broad degree of classification is quite inadequate for productivity measurements purposes, as we shall see later.
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From page 425... ...
Over that period, total shipments rose 11.2 percent and shipments less commission work rose 15.4 percent. This means that a productivity measure based on total value of industry shipments, without adjustment for commission work, would understate the 4-year increase by four percentage points (Table 2~.~ The levels shown by the CIR and ASM reports are somewhat different, as might be expected, because of differences in sampling, definition, (e.g., shipments versus production)
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From page 426... ...
According to Census Bureau representatives, the leisure suits, on the one hand, were secondary products of firms not classified in Industry 231; on the other hand, some firms would have been reclassified to Industry 231 because leisure suits had become their primary product. But, once a sample is drawn (from the CM universe)
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From page 427... ...
The consequence of these developments is that there is no direct identification of quality differences among garments within the product classes or groups. This has serious implications for productivity measurement since labor requirements are affected by product specifications that are related to quality.
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From page 428... ...
WEIGHTED PRODUCTION INDEXE S The preferred type of output index for use as a component of a productivity index is a weighted output index, where the detailed products of the industry are combined with certain weights. While the proceeding discussion indicates a very serious limitation in the method because of the lack of sufficient product detail, it is nevertheless useful to review the results of different weighting schemes.
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From page 429... ...
The important point to note is that a substantial part of the so-called weighted production indexes is obtained by deflating values, however weak or strong that deflation process might be. The Federal Reserve Board indexes of production for Industry 231 are based merely on a count of the number of units produced in the industry without regard to product classification.
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From page 430... ...
Price data are currently available for products of the men's clothing industry through the BUS wholesale price program. Three products are priced, men's lightweight suits, men's regular weight suits, and sport coats.
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From page 431... ...
An additional statistical advantage held by the Census series is that its shipments and labor input data came Prom the same survey and are thus directly compatible with each other. There is also a conceptual difference between the two series: BES includes all hours paid for, i.e., vacation, holidays, and sick leave.
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From page 432... ...
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From page 434... ...
For the two subperiods, 1967-1972 and 1972-1976, the differences were less than 3 percentage points and for the entire 9-year period 1967-1976 the difference was 3.6 percentage points (Table 5~. We might expect Census Bureau average plant hours to increase less than BUS hours paid for (or to decline more)
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From page 435... ...
It suggests that capital productivity and multifactor productivity measures should be attempted if labor productivity measures are developed for the industry. SUMMARY AND RECOMMENDATIONS The men's clothing industry, like other apparel industries is highly susceptible to the vagaries of fashion.
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From page 436... ...
They are conceptually more desirable for productivity measurement since they relate to hours worked or, more precisely, hours at the plant. BUS hours paid for would be affected in different ways by increased leisure time; a decline in hours at work resulting from an increase in paid vacations would not affect average hours, while a decline in the workweek would result in a decline in hours.
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From page 437... ...
The available statistics for Industry 231 indicate that a substantial increase in capital stock per worker has taken place. If reliable production indexes are eventually developed, then both labor and capital productivity measures should also be derived.
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From page 438... ...
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From page 440... ...
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From page 441... ...
Of total quantity, how many were made from Knit fabric All cotton and chiefly cotton All man-made and chiefly man-made All wool and chiefly wool All other fabrics Woven fabric All cotton and chiefly cotton All man-made and chiefly man-made All wool and chiefly wool All other fabrics units units units units units units units units Units units units units units units units units units units
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From page 442... ...
Of total quantity, how many were made from Knit fabric All cotton and chiefly cotton All man-made and chiefly man-made All wool and chiefly wool All other fabrics Woven fabric All cotton and chiefly cotton All man-made and chiefly man-made All wool and chiefly wool All other fabrics units units units units units units units units units units units units units units Boys' casual (nontailored) type sport coats (total)
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From page 443... ...
(total) Of total quantity, how many were made from Knit fabric All cotton and chiefly cotton All man-made and chiefly man-made All wool and chiefly wool All other fabrics Woven fabric All cotton and chiefly cotton All man-made and chiefly man-made All wool and chiefly wool All other fabrics units units units units units units units units units units units units units
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