Unraveling the Textile Industry: Market Outlook and Innovations

The last time we assessed the textile industry, we saw a surge in investment as foreign manufacturers sought refuge in the US.

The industry’s resilience during the pandemic gave confidence that it could weather inflation, disruptions in the supply chain, and rising costs. To get an update, we caught up with Marjorie Weinberg.

Market Overview and Projections

The North American Textile Market is estimated to be worth $99.82 billion in 2024, projected to grow to $120.58 billion by 2029, showing a compound annual growth rate of 3.85%. In addition, the U.S. textile industry is expected to reach $26.43 billion in 2024, with a compound annual growth rate of 3.62%. These figures lay the groundwork for understanding market dynamics.

The textile mills industry is anticipated to experience modest growth until 2025. The demand for automotive technical textiles is expected to rise as the automobile industry recovers with an uptick in new car sales. Although the price of synthetic fiber is predicted to increase in the upcoming years, imports, which constitute half of the domestic demand, are projected to decline due to a weakening US dollar.

Challenges and Industry Response

Disruptions in global supply chains, inflation, and escalating material costs have presented significant hurdles to the textile industry. Moreover, consumer demand has been affected by inflation, causing an imbalance between supply and demand.

The industry has encountered disruptions in global supply chains, impacting both production and distribution. Inflation and rising material costs have also posed substantial challenges. Although consumer demand started off strong, it plateaued due to inflation, exacerbating the supply-demand imbalance. Rising interest rates and macroeconomic conditions have further complicated the business environment.

Opportunities and Technological Advancements

Despite challenges, growth opportunities abound in the textile industry, particularly in the increasing demand for automotive technical textiles and advancements in high-tech textiles. Furthermore, the industry has seen notable technological advancements, including innovative spinning methods, weaving machines, and improved printing processes.

Certain textile sectors, such as industrial carpets, fabrics, and specialty yarns, are highly automated and may retain competitiveness due to lower production costs and specialized facilities. The US remains at the forefront of discovering new fibers and applications for high-tech textiles, suggesting potential job opportunities for textile scientists and researchers. New roles in the apparel business are likely to emerge mainly as current workers transition out of the field.

The textile industry continues to diversify its product range and broaden its client base by collaborating with other sectors. Recent developments include supplying materials for highway construction, erosion control, and even space exploration. Advancements in spinning techniques, weaving machines, printing processes, and increased integration of computers into manufacturing operations have made the US textile industry one of the most efficient and productive globally.

Environmental Concerns and Government Engagement

Environmental concerns have prompted efforts to reduce pollution generated by manufacturing plants. For the textile industry, environmental awareness translates into actions like altering dye ingredients, installing water purification systems, contributing to the construction of municipal waste treatment facilities, or exploring liquid recycling methods. More about the textile industry’s carbon footprint here.

The National Council of Textile Organizations has actively engaged with the Biden administration and Congress. Key achievements include bolstering government procurement of US textile-based products and maintaining a firm stance on China trade enforcement. The US Department of Labor predicts a decline in employment in textiles, apparel, and furnishings due to automation, competition, mergers, and imports.