CUR · KKO
Capacity Utilization
Short definition
Capacity utilization is how much of the installed plant is actually used. High utilization supports price and delivery power; low utilization pressures break-even and unit fixed cost.
Detailed explanation
The CBRT manufacturing CUR survey is a macro proxy; your line utilization is measured separately. The bottleneck may be one line or skilled labour; average CUR hides it.
An investment is not taken on “CUR is high” without sustainable utilization and a demand duration. A short spike leaves surplus capex.
Why it matters for the CFO
DOL and unit cost move with utilization. Cutting price at low CUR eats contribution without filling volume.
How to read it
There is no universal “full capacity” line; maintenance, shifts and quality make 100 meaningless. Sector CUR is not your ceiling.
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Güven Sayılgan’s writing on this topic
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.