State of the U.S. Textile and Apparel Industry: Output, Employment, and Trade (Updated September 2019)

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The size of the U.S. textile and apparel industry has significantly shrunk over the past decades. However, U.S. textile manufacturing is gradually coming back. The value added of U.S. textile manufacturing totaled $19 billion in 2018, up 25% from 2009 and reaching its highest level in the past ten years. In comparison, U.S. apparel manufacturing dropped to $9.2 billion in 2018, its lowest level in history (Bureau of Economic Analysis, 2019).

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Nevertheless, the share of U.S. textile and apparel manufacturing in the U.S. Gross Domestic Product (GDP) dropped to only 0.14% in 2018 from 0.57% in 1998 (Bureau of Economic Analysis, 2019).

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The U.S. textile and apparel manufacturing is also changing in nature. For example, textiles had accounted for nearly 70% of the total output of the U.S. textile and apparel industry as of 2018, up from 58% in 1998 (Bureau of Economic Analysis, 2019). Meanwhile, clothing had only accounted for 12% of the total U.S. fiber production by 2012, suggesting non-apparel textile products, such as industrial textiles and home textiles have become a more important part of the industry (Census Bureau, 2019).

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Despite the growing popularity of “Made in the USA”, manufacturing jobs are NOT coming back to the U.S. textile and apparel industry. From January 2005 to August 2019, employment in the U.S. textile manufacturing (NAICS 313 and 314) and apparel manufacturing (NAICS 315) declined by 44.3% and 59.3% respectively (Bureau of Labor Statistics, 2019). However, improved productivity is one important factor behind the job losses.

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Consistent with the theoretical prediction, U.S. remains a net textile exporter and a net apparel importer. In 2018, the U.S. enjoyed a $1391million trade surplus in textiles and suffered a $79,406 million trade deficit in apparel (USITC, 2019). Notably, over 40% of U.S.-made textiles (NAICS 313 and 314) were sold overseas in 2018, up from only 15% in 2000. Meanwhile, from 2009 to 2018, the value of U.S. yarns and fabrics exports increased by 31.3% and 43.6% respectively (OTEXA, 2019). On the other hand, because of the regional trade patterns, close to 70% of U.S. textile and apparel export still, go to the western hemisphere today.

by Sheng Lu

Discussion questions:

  1. Why or why not do you think the U.S. textile industry and the apparel industry are in good shape?
  2. Based on the statistics, do you think textile and apparel “Made in the USA” have a future? Please explain.
  3. What are the top challenges facing the U.S. textile industry and the apparel industry in today’s global economy?