NCPA - National Center for Policy Analysis

Why Is Industrial Construction Declining?

May 4, 1998

  • Some analysts suggest that the answer lies in the overtime statistics, which indicate factory managers are adding more shifts, rather than building more plants.
  • In the late 1980s, industrial overtime averaged about 3.8 hours per week.
  • In recent quarters it has averaged about an hour more than that.

This can be seen in the auto industry, where 6 percent of vehicles assembled in North America last year resulted from overtime production -- equivalent to the output of an additional 4.4 auto plants running on straight time.

 

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