And the long-run increase in productivity did not result mostly from shutting down inefficient plants.
Not all of the productivity gains resulted from shutting inefficient plants or slashing payrolls.
In an effort to become more competitive the industry has been shutting down inefficient plants.
In the mid-1980s the government hoped to phase out these inefficient plants in favor of larger, more productive plants.
Alcoa will take a $165.7 million second-quarter charge, after taxes, to cover the closing of several inefficient plants.
When he came to the company, the steelmaker was losing billions of dollars and running inefficient plants.
General Motors executives say closing old, inefficient plants is necessary to compete with the modern facilities being built by the Japanese.
"They used to be a high-cost producer," he said, "but they have added new efficient capacity and cut out the inefficient plants."
In effect, the quick closing of inefficient plants will allow energy companies to use efficient ones longer.
(2) ditto, the efficiency It's the most inefficient plants that warrant greater scrutiny, rather than just simple size.