Manufacturers spend 12 percent more nominal and 5 percent more real dollars on energy in 1998 than in 1994.

Spending on most energy sources rose with the exception of fuel oil and coal. In real terms, dollars spent on residual fuel oil was 34 percent less in 1998 than spent in 1994; dollars spent on distillate was 24 percent less, and dollars spent on coal was 25 percent less.

In 1998, while spending on electricity was more one-half of all spending on energy, spending, in real dollars, on both residual and distillate fuel oil and coal was less than six percent of all the dollars spent on energy by manufacturers.

Manufacturer purchases of electricity from nonutilities grew substantially between 1994 and 1998 (255 percent)--however, the 2,329 million real dollars spent on nonutility electricity in 1998 was only six percent of all spending on electricity.

Although manufacturers purchased almost the same percent of nonutility steam in 1994 as 1998 (59 percent in 1998), the amount of dollars spent on purchased steam from any source was 93 percent higher in 1998 than in 1994 as more establishments outsourced the onsite cogeneration.

While the two industries, paper and chemical, accounted for  54 percent of the purchased steam expenditures in 1994, these industries accounted for 69 percent of the purchased steam expenditures in 1998--possibly due to the outsourcing of their on-site generation of electricity. See the onsite generation section for more information.