Fabric Mills
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 685 fabric mills in the US transform yarn or fibers into fabric that is further manufactured into usable items, such as apparel, sheets, or towels. Major product categories include nonwoven fabrics, broadwoven fabrics, knit fabrics, and narrow fabrics. Almost half of US textile output is used for technical applications, such as conveyor belts and automotive floor coverings. About 40% of output goes towards home textiles and floor coverings. Apparel accounts for just over 10% of US textile output.
High Capital Requirements
The US fabric mill industry is highly capital-intensive and requires a significant investment in plants, property, and equipment.
Competition From Foreign Manufacturers
Overseas textile production has decimated the US fabric manufacturing industry.
Industry size & Structure
The average nonwoven fabric mill employs about 90 workers and generates $37 million annually; the average broadwoven mill about 57 workers and $14 million annually; the average knit fabric mill about 48 workers and $10 million annually; and the average narrow fabric mill about 34 workers and $5.8 million annually.
- The fabric mill industry consists of about 685 companies that employ 43,100 workers and generate $13.2 billion annually.
- The textile mill industry includes fiber, yarn, and thread mills; fabric mills; and textile and fabric finishing and coating mills. Fabric mills may be vertically integrated and perform operations within the textile supply chain in addition to fabric production.
- The industry is concentrated; the top 50 companies account for 66% of industry revenue.
- Large companies with fabric mill operations include Elevate Textiles (Burlington), Milleken, and Albany International. Large firms may have operations in foreign countries.
- US textile production is primarily located in southeastern states and Pennsylvania. States with the largest textile workforces include Georgia and North Carolina.
Industry Forecast
Fabric Mills Industry Growth
Recent Developments
Nov 11, 2024 - Manufacturing Activity Contracts
- US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Producer prices for fabric mills fell 0.6% in September 2024 compared to a year ago, according to the latest data from the Bureau of Labor Statistics (BLS). Employment by fabric mills declined 2.8% in September 2024 compared to a year ago, while wages at textile mills fell by 4.4% in October year over year, per the BLS.
- A new study by the National Retail Federation (NRF) estimated that president-elect Donald Trump’s tariff proposals could cost American consumers between $46 billion and $78 billion in spending power. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China on a number of consumer product categories including apparel. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- Import cargo volume for September 2024 at US major container ports is expected to rise 14% compared to a year ago, according to the Global Port Tracker report in Textile. The report, released by the National Retail Federation and Hackett Associates, is forecasting the import figures to be 2.31 million twenty-foot container equivalent units (TEU); if the projection is correct, it will mark a seven-month stretch of import levels at or above 2 million TEU. A potential labor strike at East Coast and Gulf Coast ports is also causing concern. According to Hackett Associates Founder Ben Hackett, “Import levels are being impacted by concerns about the potential East and Gulf Coast port strike. This has caused some cargo owners to bring forward shipments, bumping up June-through-September imports. In addition, some importers are weighing the decision to bring forward some goods, particularly from China, that could be impacted by rising tariffs following the election.”
- The home textiles market, a key market segment for fabric mills, is set to grow at a CAGR of 5.1% from 2024 to 2028, reaching $6.1 billion, according to Technavio. One factor contributing to industry growth is the rising demand for eco-friendly and sustainable products made from organic plant-based fibers, recycled materials, and materials free of pesticides, chemicals, and fertilizers. Decorative and functional pieces with a focus on comfort are in high demand, with microfiber, velvet, and shag gaining popularity. Technology is also driving new products such as heating and cooling products. Issues facing the industry include higher manufacturing costs due to rising prices of raw materials and competition from countries with lower labor costs, per the report.
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