What is the Ethanol Fuel Production industry?
The industry has a very high level of capital intensity. The industry requires large-scale plants to ferment crops and produce ethanol. Machinery and pumps are used to transport, process and distribute inputs. Sensors are also used to measure and regulate the chemical compound of ethanol.
Industry depreciation charges, which are a proxy for the capital input to production, are estimated to account for 7.5% of industry revenue in 2016-17 while total wage costs absorb approximately 6.3% of revenue. This indicates the industry allocates $0.84 on capital expenses for every dollar spent on labour input to production. Capital intensity has increased over the past five years on the back of larger investments into output capacity... purchase to read more