Fabric Mills NAICS 3132

Jul 8, 2025 - Production Costs, Carbon Footprint Variations Seen in New ITMF Report

• A newly released report by the International Textile Manufacturers Federation (ITMF) analyzes the cost components and carbon footprint of key textile manufacturing stages in 15 major production regions, according to Textile Value Chain. The ITMF’s International Production Cost Comparison (IPCC) report focused on 2023 data. For example, producing one meter of cotton woven fabric in a continuous open width process averaged USD 0.94 in 2023 (excluding raw material), with costs ranging from USD 0.70 in Bangladesh to USD 1.54 in Italy. Countries with the highest labor costs were Italy, the US, and Korea, while the lowest labor costs were in Indonesia, Egypt, and Bangladesh. The report showed energy costs were highest in Central America, Italy, and Mexico, while lowest in Pakistan and Egypt. Examining the carbon footprint of producing one meter of finished cotton fabric using continuous open width finishing, India had the highest emissions while Brazil recorded the lowest emissions.
• Textile mills are one of the six manufacturing industries reporting contraction in June’s Manufacturing ISM Report on Business. Textile mills reported declines in production and new orders, a decrease in employment, slower supplier deliveries, lower order backlogs, higher inventories, and higher prices for raw materials. Other industries reporting contraction were Wood Products; Paper Products; Chemical Products; Transportation Equipment; and Fabricated Metal Products. Nine manufacturing industries reported growth during the period including Apparel, Leather & Allied Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Furniture & Related Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. Overall, economic activity in the manufacturing sector contracted for the fourth consecutive month in June, with the Manufacturing PMI registering 49%.

• The US fabric mills industry is projected to grow at a CAGR of 4.89% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. This rate is faster than the overall economy's anticipated growth. The nondurable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation.
• According to a report in the Wall Street Journal, fabric manufacturers are feeling new tariffs cut both ways, as they win more business but also face uncertainty in trade policy and consumer demand. US fabric manufacturer STI Fabrics, a North Carolina-based company operating since 1964, said it is receiving increased interest from furniture makers seeking to switch to domestic suppliers from Chinese vendors due to Trump’s new tariff implementations. CEO Sean Gibbons said he will need to hire 100 workers for a third shift to produce materials to meet the higher demand. However, Gibbons said he must be cautious when making such a significant investment, as he is unsure how long the higher tariffs will stay in place. Similarly, some potential customers are hesitant to switch to US-made fabrics due to the fluctuating tariff situation. Customers may also switch their sourcing from China to countries such as India and Turkey, which have a lower base tariff of 10%.