The following chapter provides a KLEMS (Capital, Labour, Energy, Materials and Services) analysis of Gross Output growth in the economy. While the previous chapters looked at the economy from a Gross Value Added (GVA) approach, this chapter additionally considers the intermediate inputs consumed in the production process. The KLEMS methodology decomposes intermediate consumption into the three categories of Energy, Materials and Services to provide greater insight into the sources of growth in a given sector. The data used to categorise the intermediate consumption is taken from the Use Table of the Supply and Use Tables, which give a detailed breakdown of intermediate consumption of products and services by economic sector.
It should be noted that since the KLEMS approach uses Gross Output [1]as the measure of output for a sector, the Multifactor Productivity (MFP) growth rate associated with that sector is generally minimised when compared to the MFP growth rate [2] found when using GVA as the measure of output.
[1] Gross Output in this chapter excludes inter-industry deliveries of intermediate inputs to avoid overstating the output of each sector.
[2] To avoid confusion with the MFP results seen elsewhere in the publication, the term KLEMS MFP will be used instead of MFP. A comparison to illustrate this point can be generated from the PxStat table: PxStat PIA13.
Table 9.1 shows a KLEMS decomposition of Gross Output growth for 2020 at the A21 sector level. There were very large changes in Gross Output for many sectors across the economy, with large positive growth for the Foreign-dominated sectors of ICT (12.1%) and Manufacturing: Foreign (20.9%). At the other extreme, there were massive falls in Gross Output Transport & Storage (-73.7%) and Accommodation & Food (-51.9%) due to the COVID-19 pandemic. In general, Labour and Services provided the largest contributions to growth, however these were negative for most sectors in the economy. There were also significant changes to KLEMS MFP for most sectors, with particularly large results for sectors that saw large changes to Gross Output.
| Timeperiod | Capital | Labour | Energy | Materials | Services | KLEMS Multifactor Productivity | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | 0 | -1.64113432719246 | -0.9924425956799 | -7.39933264583427 | -7.66233887185658 | -1.47039619199587 | -19.1656446325591 |
| 2012 | 0 | -2.48167441674289 | -3.08327546604658 | -25.9620333414598 | -9.23530695819071 | -0.865711136556212 | -41.6280013189962 |
| 2013 | -0.37106982394195 | 1.33665190174103 | 1.25315994113627 | 6.45107879346717 | 1.7119251131473 | 2.80299271387196 | 13.1847386394218 |
| 2014 | -0.532639140999035 | 5.08644013147619 | 0.00743296662721795 | 6.3380258772841 | 12.1845001402331 | -1.45653485660707 | 21.6272251180145 |
| 2015 | 0.393324809159046 | 4.18651447741727 | -0.11450180078409 | -0.509182867820562 | 4.36265773474247 | -1.93614312609876 | 6.38266922661536 |
| 2016 | 0.665378354095988 | 2.82077148542249 | 0.313018012625792 | 5.75777242290529 | 17.1856603647028 | 0.147834373838826 | 26.8904350135912 |
| 2017 | 1.16001555300734 | 2.26270735756254 | 3.72685636046215 | 4.02651115629316 | 0.174908722542111 | 0.530506522219862 | 11.8815056720872 |
| 2018 | 0.883491127779337 | 3.26730511794421 | -0.0767199429675345 | 1.60966153065076 | -3.61894750025612 | -0.661940860417481 | 1.40284947273317 |
| 2019 | 1.19895438900219 | 0.404324527673653 | 0.859506203612857 | 2.77287628012036 | 1.99848628957633 | 0.443003606694601 | 7.67715129667999 |
| 2020 | 1.00651515695746 | -5.84212766059203 | 1.63236850287737 | -3.08225099444461 | -2.22146094205228 | 0.976538394776198 | -7.53041754247788 |
Get the data: PxStat PIA13
Gross Output in the Construction sector fell by 7.5% in 2020, due to the COVID-19 restrictions placed on this sector, which was shut down for several months throughout the year. This marked the first fall in Gross Output for the sector since 2012. Labour (-5.8%) provided the largest negative contribution to growth in the sector in 2020, while Materials (-3.1%) and Services (-2.2%) also provided negative contributions. KLEMS MFP grew by 1% in 2020, following on from an increase of 0.4% in 2019. KLEMS MFP growth has tended to explain relatively little of Gross Output growth in the Construction sector over the period 2011-2020, with much of the growth in previous years attributable to Materials and Services.
| Timeperiod | Capital | Labour | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 0 | 20.6957206004836 | 5.1725083592167 | 54.8580039642912 | 19.2737670760085 |
| 2012 | 0 | 30.0400884534656 | 4.7523874639432 | 50.3497237210344 | 14.8578003615568 |
| 2013 | 3.34389751998257 | 37.6678589597073 | 4.20220893645437 | 42.857929544239 | 11.9281050396167 |
| 2014 | 8.9501921339579 | 32.1437359509531 | 3.84135967173691 | 39.7014890459964 | 15.3632231973557 |
| 2015 | 11.1147176108347 | 29.0360329448254 | 2.98950901235227 | 36.4376110139241 | 20.4221294180636 |
| 2016 | 10.4414922256605 | 27.7509687980839 | 2.63595093906581 | 33.2762003021116 | 25.8953877350782 |
| 2017 | 11.8690826057884 | 25.5062237937968 | 3.99793306939071 | 30.4730330418835 | 28.1537274891406 |
| 2018 | 14.2254922447993 | 25.6883683937501 | 5.21585462900353 | 30.5310715555736 | 24.3392131768735 |
| 2019 | 14.4146352094423 | 26.4514150755388 | 5.04351587994717 | 31.4346434109333 | 22.6557904241384 |
| 2020 | 14.0603921597585 | 26.2093017878378 | 5.09437892346451 | 31.7516567155051 | 22.884270413434 |
Get the data: PxStat PIA13
Labour (26.2%), Materials (31.8%) and Services (22.9%) accounted for the largest shares in Gross Output for the Construction sector in 2020. Services and Capital have become more important in the sector over the period 2011-2020, with the Materials share falling at the same time. Looking at the Materials used as intermediate consumption in the sector, Other Non-Metallic Mineral Products (26.8%) and non-Machinery and Equipment Fabricated Metal Products (16.4%) accounted for the largest proportions. The most significant Services consumed were Wholesale Trade (25.5%), Rental & Leasing (16.1%) and Architecture & Engineering (10.5%).
| Timeperiod | Capital | Labour | Energy | Materials | Services | KLEMS Multifactor Productivity | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | -0.0806536568756946 | -2.99084797709949 | -0.396777382902593 | -23.6856834882035 | -4.41992304761426 | 4.96813574957661 | -26.6057498031189 |
| 2012 | -0.224695407396041 | 1.14179742361274 | 1.04135718911944 | 5.32684751954696 | 3.51210418663744 | -1.66979213838609 | 9.12761877313445 |
| 2013 | -0.00331588342119787 | 4.99918861550499 | 0.551794444916806 | -2.47268261261095 | -3.53271121828877 | -0.253620081284143 | -0.71134673518327 |
| 2014 | 0.0313863754071973 | 3.99599074026817 | -0.0274445513108927 | 1.35109138857619 | -0.98587023957246 | -0.402353212017959 | 3.96280050135024 |
| 2015 | 0.0230884238712447 | 1.16560508734181 | -0.102667001963284 | -0.0463813102804729 | -3.00012881055491 | 1.98664552983252 | 0.0261619182469055 |
| 2016 | -0.107334609306895 | 2.93803336027568 | 1.3531618005333 | 2.37593098131934 | 5.2105239639561 | 0.860496015386301 | 12.6308115121638 |
| 2017 | 0.234787387275834 | 2.69942732237072 | -0.116201762006013 | -4.21947852345038 | -1.75925396817347 | 0.251102032564249 | -2.90961751141906 |
| 2018 | 2.2656960813095 | 4.333467444098 | 0.682047119229128 | 10.9799531775117 | -6.44810814272261 | -1.15566937172608 | 10.6573863076996 |
| 2019 | 1.83831387196503 | 1.19436815268754 | 0.675828638261156 | 1.03307751200557 | 0.857955007225943 | -1.67957714722212 | 3.91996603492312 |
| 2020 | 1.42921001321821 | -29.618326365281 | -0.113492702617965 | -6.34256070990382 | -5.26739925751784 | -11.9395781780104 | -51.8521472001128 |
Get the data: PxStat PIA13
As seen elsewhere in the publication, the Accommodation & Food sector was one of the sectors most affected by COVID-19 in 2020. Gross Output in the sector fell by 51.9% in 2020. Most of the fall in Gross Output was attributable to Labour (-29.6%), however there were also large negative contributions from Materials (-6.3%) and Services (-5.3%). KLEMS MFP fell by 11.9%, having also declined in the previous two years.
| Timeperiod | Capital | Labour | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 1.01184691275054 | 51.6293311570939 | 3.19844963518221 | 17.7027162022361 | 26.4576560927372 |
| 2012 | 3.44422040756861 | 53.5527912834122 | 4.10715250274595 | 10.9503600160085 | 27.9454757902648 |
| 2013 | 6.43165298137615 | 50.072570378542 | 4.78018253483866 | 11.9579444654761 | 26.7576496397671 |
| 2014 | 7.8498249341421 | 51.2998402895644 | 4.75771356889741 | 11.4302392630343 | 24.6623819443619 |
| 2015 | 9.08361402658691 | 52.636595132556 | 4.09479461194876 | 11.8089026623626 | 22.3760935665458 |
| 2016 | 9.27564398438254 | 52.7794655732934 | 3.8650279357447 | 11.9773043832569 | 22.1025581233225 |
| 2017 | 10.2913733018209 | 52.9491324356241 | 3.98948322190819 | 10.0347006962311 | 22.7353103444157 |
| 2018 | 12.5084812856866 | 53.1772766890079 | 4.1963366840002 | 12.2076965405769 | 17.9102088007284 |
| 2019 | 11.9016836686011 | 52.7901608626976 | 4.4830383578808 | 16.8398665640441 | 13.9852505467765 |
| 2020 | 9.41699042019879 | 50.741597290748 | 5.05862107926586 | 19.0019574164801 | 15.7808337933072 |
Get the data: PxStat PIA13
Gross Output in the Accommodation & Food sector in 2020 was largely attributable to Labour (50.7%), while Materials (19.0%) and Services (15.8%) were the other most significant components. Unsurprisingly, the most important Materials used for intermediate consumption were Food Products (70.1%) and Beverages (24.5%) which accounted for 94.6% of all Materials in the sector. The largest services used were Finance & Insurance (29.6%), Legal & Accounting (19.0%) and Security (11.3%).
| Timeperiod | Capital | Labour | Energy | Materials | Services | KLEMS Multifactor Productivity | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | 0.685962723508584 | -0.197332301978332 | 0.387660105048544 | -2.52821516641619 | -0.958950642336084 | 5.66069068179505 | 3.04981539962157 |
| 2012 | 0.597276547068153 | -0.163537457834565 | 2.86479668971316 | 5.30119652835142 | 3.4622088909581 | -1.17900168908949 | 10.8829395091668 |
| 2013 | 0.759418577004684 | 1.24358066063659 | -1.28650888518922 | -2.91947798655761 | -4.42210530965672 | 0.444495721776312 | -6.18059722198596 |
| 2014 | 1.74644928937018 | 0.238612561529892 | -0.857804997531473 | 3.75399773176198 | 2.08697783331834 | 1.0996053695504 | 8.06783778799932 |
| 2015 | 0.583111251976743 | 0.992174471537156 | -1.1372038993015 | 0.561264213751275 | 2.34886915826788 | 1.66641797643748 | 5.01463317266903 |
| 2016 | 1.15555402280795 | 0.943690200668329 | -0.0423592189957288 | 3.66892528583911 | 0.125446697112208 | -2.12371579692013 | 3.72754119051174 |
| 2017 | 1.22829110995485 | 0.190162597820279 | -2.30496612866048 | -1.56839525864285 | 8.27915450792386 | -1.90408758216269 | 3.92015924623297 |
| 2018 | 0.687177484243471 | -0.250558282435687 | -0.0370038497713255 | 5.48376078862948 | -4.64854860960683 | 0.174539756353263 | 1.40936728741237 |
| 2019 | 0.0324519590219212 | 0.250694209542577 | 0.615968845862433 | 4.76191972595063 | 3.76358306249687 | 2.76385552817059 | 12.188473331045 |
| 2020 | -1.0193314554162 | -0.689890401708316 | 1.75192618233216 | -0.586594605969582 | -0.463615023064767 | -2.39579969561128 | -3.40330499943797 |
Get the data: PxStat PIA13
Gross Output in the Manufacturing: Domestic and Other sector fell by 3.4% in 2020, after increasing by 12.2% in 2019. The only positive contribution to Gross Output growth in the sector came from Energy (1.8%), while Capital, Labour, Materials and Services all made negative contributions of less than one percent. KLEMS MFP fell by 2.4% in 2020, having increased by 2.8% in 2019. Services and Materials have been the primary drivers of growth in the sector over the last 10 years, however this was not the case in 2020, with KLEMS MFP growth providing the largest contribution.
| Timeperiod | Capital | Labour | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 23.7288391031947 | 18.0965601517251 | 10.9717397052083 | 23.5076244164695 | 23.6952366234025 |
| 2012 | 23.5950406485089 | 16.1842963514226 | 12.5048190143963 | 24.4574568077112 | 23.2583871779611 |
| 2013 | 24.5308596224694 | 15.6844534003518 | 12.7568778653679 | 25.2252842743708 | 21.8025248374402 |
| 2014 | 27.3842573662805 | 16.1262408249795 | 11.0672941115134 | 25.0458607686568 | 20.3763469285698 |
| 2015 | 28.537068022907 | 15.7373567245591 | 8.83271834387826 | 25.1962306377213 | 21.6966262709344 |
| 2016 | 28.8293845114179 | 16.3888439139119 | 7.3320910349298 | 25.7044050395302 | 21.7452755002102 |
| 2017 | 27.4589057001698 | 16.7529770256989 | 5.73262002419079 | 25.462958924521 | 24.5925383254196 |
| 2018 | 26.4794302705783 | 16.5410160335264 | 4.3700632134242 | 26.9121404438732 | 25.697350038598 |
| 2019 | 25.7656868481911 | 16.6418217054827 | 4.32922979831409 | 29.7501956897871 | 23.513065958225 |
| 2020 | 23.7828319506586 | 16.4144552450248 | 4.49537222284871 | 30.8919160124656 | 24.4154245690023 |
Get the data: PxStat PIA13
Materials (30.9%), Services (24.4%) and Capital (23.8%) had the largest Gross Output shares in the Manufacturing: Domestic & Other sector in 2020. The main development in Gross Output shares in the sector has been the declining influence of Energy, with the Materials share growing over the period 2011-2020. The largest Materials products used in intermediate consumption were from Agriculture (68.3%) and Chemicals & Chemical Products (19.0%), while the most significant services shares were Advertising (19.7%), Air Transport (19.0%) and Rental & Leasing (16.2%).
| Timeperiod | Capital | Labour | Energy | Materials | Services | KLEMS Multifactor Productivity | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | -1.36034792843066 | 0.0419195174347552 | -0.160969578770493 | -0.0662496767667743 | -1.72901684825839 | 0.831284529232778 | -2.44337998555878 |
| 2012 | 0.597475648672249 | -0.192713014516034 | 0.105733967152499 | 2.08691172171587 | 1.20809603800219 | -0.896760384802293 | 2.90874397622448 |
| 2013 | 1.56265402262004 | 0.176439293102122 | 0.415761829148105 | 0.947786074683363 | 3.08511153049124 | -5.75184363221619 | 0.435909117828678 |
| 2014 | 1.18405964244835 | 0.486979215976401 | -0.118518144510337 | -0.466371834548578 | 6.44733118942324 | 3.28708420959526 | 10.8205642783843 |
| 2015 | 86.0737029383766 | 0.36856072209739 | -0.0803199215832244 | -0.0645340028919123 | 18.0863828734939 | -44.1486436671072 | 60.2351489423856 |
| 2016 | 10.501585800847 | 0.170371917843338 | 0.16607765512786 | 1.20488138119863 | 3.09704654092147 | -11.9728934192117 | 3.16706987672663 |
| 2017 | -2.70257275653068 | 0.0164580549450044 | -0.047293856158646 | -1.32459462509752 | 2.09252937548962 | 5.34498253878448 | 3.37950873143225 |
| 2018 | -2.03773062984847 | 0.0849729502459292 | 0.84013128016859 | 2.7723354250917 | -6.11587396968694 | 9.04720200068878 | 4.59103705665959 |
| 2019 | 10.4212166145985 | 0.0120931726243741 | 0.167849041509159 | 0.010102923222206 | 0.0513830587653383 | -9.4551516582723 | 1.20749315244729 |
| 2020 | 0.486364912680813 | 0.129530419244882 | 0.471974777182667 | 0.701339375595399 | 3.5669836895772 | 15.5782880621511 | 20.9344812364321 |
Get the data: PxStat PIA13
The Manufacturing: Foreign sector saw large growth of 20.9% in Gross Output in 2020, up from 1.2% growth in 2019. Due to the lower additions of Intellectual Property Products (IPP) to Capital, the main driver of Gross Output growth was a significant increase of 15.6% in KLEMS MFP, which declined by 9.5% in the previous year. Interestingly, Manufacturing: Foreign was one of the only sectors to have positive contributions from every input type in 2020. While Services play an important role in this sector, Capital tends to drive Gross Output growth. As seen elsewhere in the publication, large additions of capital tend to lead to reductions in KLEMS MFP in this sector.
| Timeperiod | Capital | Labour | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 39.7806951929066 | 8.95079555403037 | 0.732711110998751 | 6.13742758876122 | 44.3983705533031 |
| 2012 | 40.1197647244437 | 8.86878315289868 | 0.743796056057145 | 6.69878422736613 | 43.5688718392343 |
| 2013 | 36.6116542338666 | 8.81374564206839 | 1.00623119022106 | 8.00637183184406 | 45.5619971019999 |
| 2014 | 34.9440307425475 | 8.6238097743138 | 1.05157700909459 | 7.87962293580178 | 47.5009595382423 |
| 2015 | 45.7104254246376 | 6.24940095811679 | 0.623556358431739 | 5.42835527779614 | 41.9882619810178 |
| 2016 | 54.8655742845956 | 4.35111448396801 | 0.406930146954667 | 4.06149250383441 | 36.3148885806473 |
| 2017 | 53.9832734951121 | 4.44693404092463 | 0.437625788003752 | 3.89777287201706 | 37.2343938039425 |
| 2018 | 56.9653995656642 | 4.47676557176394 | 0.772399580322138 | 4.48968150796187 | 33.2957537742878 |
| 2019 | 59.3760642610976 | 4.65709248694265 | 1.13208303585602 | 5.72379096098006 | 29.1109692551237 |
| 2020 | 60.8467278812032 | 4.6796175621488 | 1.08508381550597 | 5.48616376925265 | 27.9024069718894 |
Get the data: PxStat PIA13
The inputs of Capital (60.8%) and Services (27.9%) accounted for the majority of Gross Output in the Manufacturing: Foreign sector in 2020. The main trend over the last few years has been the increasing influence of Capital, as the relative importance of Services in the sector has decreased. The majority of capital services in the sector are provided by Intangible Assets, while the most significant Services consumed, Rental & Leasing Activities (64.3%), relate to royalties for the use Intellectual Property Property (IPP).
| Timeperiod | Capital | Labour | Energy | Materials | Services | KLEMS Multifactor Productivity | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | 2.39672421780408 | 0.367984156044155 | -0.0605802043332956 | -1.92349633286618 | -2.51805056913309 | -2.39681619769632 | -4.13423493018065 |
| 2012 | 3.63727161870811 | 0.375948027117361 | 0.069308758371181 | -0.0394649845678588 | 26.7946001261259 | -3.57484444203093 | 27.2628191037238 |
| 2013 | 1.06701219453042 | 0.356617500214094 | 0.361592089589748 | 0.971809296697164 | -2.35989161733017 | 1.35123391827527 | 1.74837338197653 |
| 2014 | 2.30905485783609 | 0.108888484054952 | -0.0716387760276931 | -0.284745253309462 | 13.0191404151503 | 0.876998645805485 | 15.9576983735097 |
| 2015 | 4.15626302839673 | 0.190930037194596 | 0.00614408369390261 | 0.941893563376732 | 1.64051918032484 | -0.043056994538777 | 6.89269289844801 |
| 2016 | 4.09269997128641 | 0.49463893571689 | 0.0679551508956751 | -0.0288094757395008 | -0.827409741841599 | -1.79283572954393 | 2.00623911077394 |
| 2017 | 15.9429169270623 | 0.656057510842675 | 0.210902310043535 | 0.735378515536781 | 5.27783977831047 | -8.1165350077251 | 14.7065600340706 |
| 2018 | 1.56188371749853 | 0.131535864488586 | 0.16509114018585 | 2.01019631669335 | 8.42416827700085 | 6.76938462468351 | 19.0622599405507 |
| 2019 | 12.6473550952598 | 0.344465292561145 | 0.0437291997064955 | -0.337867600625996 | -4.23297292264912 | -5.1974588688551 | 3.26725019539718 |
| 2020 | 10.5208064661553 | 0.167833517777401 | 0.277281953178846 | 0.447953460141412 | 5.61218318617229 | -4.97395377039749 | 12.0521048130278 |
Get the data: PxStat PIA13
Gross Output in the Information & Communications (ICT) sector grew by 12.1% in 2020, up from 3.3% growth in 2019. Gross output growth is highly volatile in the Irish ICT sector, usually driven by large additions of IPP (Capital) or imports of royalties (Services), with contributions to growth of 10.5% and 5.6% in 2020 respectively. KLEMS MFP fell by 5.0% in 2020 and has decreased overall in the last few years.
| Timeperiod | Capital | Labour | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 22.7439510377944 | 9.79375737824821 | 0.199638823597986 | 4.29781935581787 | 62.9648334045416 |
| 2012 | 21.2368747417052 | 8.54360959447163 | 0.196124284393294 | 2.84392532285982 | 67.17946605657 |
| 2013 | 19.4362995136727 | 7.69971645072743 | 0.372154237464092 | 2.81569567363133 | 69.6761341245045 |
| 2014 | 19.8787699861491 | 7.64362125509535 | 0.445787442246074 | 2.92637811992273 | 69.1054431965868 |
| 2015 | 20.9646598449614 | 7.25241736407198 | 0.327257734126411 | 3.04018060512157 | 68.4154844517187 |
| 2016 | 23.2492117223949 | 7.75834450473845 | 0.313861053836933 | 3.32431170890938 | 65.3542710101203 |
| 2017 | 25.9095643689513 | 8.06475056860536 | 0.403760761088086 | 3.30591773921725 | 62.316006562138 |
| 2018 | 28.6544049476414 | 7.5952887676777 | 0.523797758658479 | 4.05041555449841 | 59.176092971524 |
| 2019 | 32.9334318908219 | 7.35014177033444 | 0.535677432457405 | 4.37452532732932 | 54.806223579057 |
| 2020 | 36.6251265800677 | 7.16261380144611 | 0.504243819517932 | 4.11782768131802 | 51.5901881176502 |
Get the data: PxStat PIA13
Services (51.6%) and Capital (36.6%) accounted for the largest shares in Gross Output for the ICT sector in 2020. As significant additions to the ICT capital stock of IPP occurred, there have been corresponding decreases in the services share explained by lower royalty payments.
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