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
Jan 11, 2025 - Producer Prices, Employment Down
- Producer prices for fabric mills fell 0.5% in November 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 October 2024 compared to a year ago. Average wages for nonsupervisory employees at textile mills fell by 3.2% in November year over year, reaching $20.06 an hour per the BLS. US manufacturing activity contracted in December 2024, marking the ninth consecutive month of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.3% in December, up 0.9 percentage points from the 48.4% recorded in November. A reading above 50% indicates manufacturing expansion.
- 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.
- 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.”
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