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
Mar 11, 2025 - Tariffs May Disrupt Coproduction Pipeline
- The Trump Administration's proposed 25% tariffs on Mexico and Canada could destabilize a crucial textile and apparel coproduction chain, according to the National Council of Textile Organization (NCTO). The US textile industry ships 53% ($12.3 billion) of its total global textile exports to Mexico and Canada, and those component materials often return to the US as finished products under the United States-Mexico-Canada Agreement (USMCA). The coproduction chain under the agreement represents $20 billion in two-way trade. The NCTO noted that the pipeline is an important alternative to the China-led, Asia-based production system that is alleged to compete using unfair tactics. Per the statement, “For these reasons, we are extremely concerned that the imposition of penalty tariffs on imports from our critical USMCA partners will only serve to benefit China and other Asian countries and harm the U.S. textile industry, which has lost 27 plants in the past 20 months.”
- According to Textile World, textile mills are one of the five manufacturing industries reporting contraction in February’s Manufacturing ISM Report on Business. Textile mills reported decreases in production, employment, and supplier deliveries, while reporting higher inventories and higher prices for raw materials. Other industries reporting contraction were Furniture & Related Products; Nonmetallic Mineral Products; Computer & Electronic Products; and Machinery. Ten manufacturing industries reported growth during the period including Petroleum & Coal Products; Miscellaneous Manufacturing; Primary Metals; Wood Products; Food, Beverage & Tobacco Products; Electrical Equipment, and Appliances & Components. Overall, economic activity in the manufacturing sector expanded for the second month in a row in February, with the Manufacturing PMI registering 50.3%.
- The home textiles market, a key market segment for fabric mills, is set to grow at a CAGR of 5.6% from 2025 to 2035, according to Orion Market Research. Factors contributing to industry growth are the rising demand for luxury and premium bedding, a growing preference for eco-friendly products, an increasing focus on personalized living spaces, and growth in e-commerce. Rising disposable income and digital innovation are also factoring in industry growth. The cotton segment is expected to hold the highest market share due to the growing consumer preference for products made with eco-friendly and biodegradable materials.
- Fabric mills will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wage levels, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage changes will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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