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. More than 20% of all fabric mill jobs were located in Georgia and North Carolina in 2021.
Industry Forecast
Fabric Mills Industry Growth
Recent Developments
Sep 19, 2024 - Shipments Up, Inventories Down
- According to the latest data from the Census Bureau, inventories of textile mills fell 2.8% in June 2024 compared to a year ago and were down 0.4% from the previous month. Shipments of textile mills increased 0.1% in June 2024 and were up 3% from the previous month. Sales at textile mills and textile product mills declined 24.7% in Q1 2024 compared to a year ago and were down 7.8% from the previous quarter, per the Census Bureau. Producer prices for fabric mills fell 1.2% in July 2024 compared to a year ago, according to the latest data from the Bureau of Labor Statistics (BLS).
- 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.
- According to a report in Textile World, automation is a key differentiator for nonwoven textiles to keep the labor component of total cost very low. In the report, Benham Pourdeyhimi, executive director of The Nonwovens Institute, said that high speed, large volume, and full automation are required in nonwovens production to effectively compete in a global economy and offer competitive products. Unlike the traditional textile industry, the nonwoven segment has grown to provide a broad selection of engineered fiber and polymer-based products. Companies nationwide are devoting more resources toward automation. According to the International Federation of Robotics, manufacturing companies in the US have increased their installation of industrial robots by 12% in 2023 year over year.
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