Outlook for the U.S. Textile Industry in 2015

In its annual industry analysis report, the Textile World (TW) presents another optimistic outlook for the U.S. textile industry in year 2015.

First, the U.S. textile industry is predicted to be in a good shape economically this year. For example, according to TW, shipment of textile mills (NAICS 313 &314) is expected to increase 3-4 percent in 2015 from last year. Value of apparel manufacturing (NAICS 315) may also increase 5 percent. Additionally, market demand for basic mill products (fibers and fabrics), nonwoven fabrics and fabrics designed for activewear could be particularly strong this year.

Second, the U.S. textile industry will continue to bring back “made in USA” through capitalization. As observed by TW, new plant and equipment spending is widespread in the U.S. textile industry in recent years, covering activities ranging from fibers, spinning, nonwovens, composites, technical fibers to textile chemical. TW further estimates that some 2.2 percent of mill shipment dollars will be spent on new investment in 2015, a level much higher than a few years ago.

Third, trade deficit in the U.S. textile industry is gradually shrinking. On one hand, TW estimates that due to China’s decreasing market share, imports of T&A to the United States will down 1 percent in 2015. This trend may continue in the years ahead. On the other hand, TW estimates that the U.S. textile exports will continue to grow for the straight 5th year in 2015. However, TW doesn’t believe textile and apparel manufacturing will have any big near-term shift back to the U.S, nor the total employment in the industry (because increased production is to be made by machines).

Fourth, sustainability and supply chain management will attract even more attention by the industry in 2015. As mentioned by the TW report, consumers nowadays have become more aware of the environmental impact of textile and apparel manufacturing. This pushes companies to make more efforts to address issues such as toxins, waste and the amount of water used for production. On the other hand, supply chain management has started to play even more important roles in controlling cost and increasing profit. For example, quoted by TW, performance of supply chain management may result in 10 percentage point differences in profit margin in the textile industry nowadays.

Fifth, trade policy will continue to have a substantial impact on the the U.S. textile industry.  2015 could be a big year for trade policy in the United States. Things that are on the top watch list in 2015 include details of the Trans-Pacific Partnership negotiation and whether the Trade Promotion Authority (TPA) bill can be passed by Congress.