Capacity Utilization | Notes
The capacity utilization rate, also called operating rate, shows the relationship between actual produced output and potential output that could be reached with available labor and equipment. The measure is shown in a percentage rate, where 100 percent indicates full capacity. For example, if an industry is working at a 65% capacity utilization rate, it means that without incurring the expensive costs of building a new plant or facility it has room to increase production by 35 percentage points.