Fabric Mills

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 735 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 fabric mill operates out of a single location, employs 61-62 workers, and generates about $17-18 million 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 fabric mill industry consists of about 735 companies that employ 45,300 workers and generate $13 billion annually.
    • Nonwoven fabric mills account for about 26% of companies and 55% of industry revenue; broadwoven fabric mills for 34% of companies and 28% of revenue; knit fabric mills for 17% of companies and 10% of revenue; and narrow fabric mills and schiffli machine mills for 23% of companies and 7% of revenue.
    • The average nonwoven fabric mill employs about 90 workers and generates $37 million annually; the average broadwoven mill about 63 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 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. One third of all textile jobs were located in Georgia and North Carolina in 2019.
                              Industry Forecast
                              Fabric Mills Industry Growth
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              Apr 22, 2022 - China’s Lockdowns to Further Snarl Global Supply Chains
                              • As of April 19, more than half of China’s largest cities were under some type of lockdown. Logistics professionals are worried that China’s zero-COVID strategy for containing the spread of the coronavirus will trigger new disruptions to global supply chains. Restrictions in China have slowed industrial production and imports. The worry is that once restrictions are lifted, a flood of pent-up goods flowing out of China will overwhelm global transportation networks.
                              • Vietnamese factories posted strong exports in the first quarter of 2021, despite high rates of COVID-19 infections. Total exports from Vietnam increased nearly 13% to more than $88 billion in Q1 2022, according to the country’s Ministry of Industry and Trade. Textile and garment exports rose more than 22% to $8.8 billion. According to Vietnamese government data, as of mid-April, Vietnam still had about 50,000 new COVID-19 cases per day, the highest in all of Southeast Asia.
                              • Demand from the auto industry may remain below pre-pandemic levels in 2022 due to mounting challenges. According to an S&P Global Mobility forecast updated in April 2022, the ongoing semiconductor shortage, the war in Ukraine, COVID-19 lockdowns in China, and inflation’s effect on vehicle affordability are expected to slow auto demand and production. S&P Global Mobility’s April forecast expects global light vehicle production to reach about 80.6 million units, down 1.1% from its March outlook. The forecast for Europe dropped 2.9% to 16.5 million units, and greater China’s production is expected to reach 24.6 million units, down 1.6% from the March forecast. North American light vehicle production is projected to be about 14.7 million units, a downgrade of 0.1% from the March outlook.
                              • Pandemic-related supply chain problems have prompted firms across many industries to test whether the US can regain some of the manufacturing output it ceded in recent decades to China and other countries. Experts say that the question has been raised among workers whose jobs were lost to globalization, but consumer interest in the issue has also increased. Claudio Knizek, global leader for advanced manufacturing and mobility at consulting firm EY-Parthenon expects industries with complex and more expensive products to lead the resurgence, including automobiles, semiconductors, defense, aviation and pharmaceuticals. Anything that requires large amounts of manual labor or is difficult to automate is much less likely to return.
                              Get A Demo

                              Vertical IQ’s Industry Intelligence Platform

                              See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                              Build valuable, lasting relationships by having smarter conversations -
                              check out Vertical IQ today.

                              Request A Demo