Synthetic Fiber Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Manufacturers of synthetic fiber have struggled for about a decade, and the next five years will be no better. As more textile mills move overseas to take advantage of lower operating costs, they will purchase less fiber from US fiber producers. Inexpensive imports from countries like China will also pose a significant threat to domestic manufacturers' market shares, while constantly rising raw material prices will eat away at operators' profit margins. For these reasons, industry research firm IBISWorld has added a report on the Synthetic Fiber Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

High raw material costs and imports will hurt manufacturers, prompting firms to cut plants.

In the face of intensifying competition from Asian imports and a declining customer base as the US textile industry gradually moves offshore, the US Synthetic Fiber Manufacturing industry has contracted during the past decade. As a result, it posted only two years of growth (2003 and 2010) between 2001 and 2012. In addition, the industry has had to weather higher raw-material costs, which have negatively affected its profit margins. From 2007 to 2012, revenue is expected to decline by 5.3% per year. In 2012 alone, revenue is anticipated to drop 3.1% to total $6.5 billion. The next five years will bring few positives. According to IBISWorld industry analyst Mary Nanfelt, from 2012 to 2017, the Synthetic Fiber Manufacturing industry's revenue is projected to decline. The industry will continue to suffer as high raw-material costs and imports keep hindering its profit margins and many firms' market shares. Additionally, demand from customers is anticipated to fall further as textile mills close or move overseas. Industry companies will react to the persistent decline by moving away from commodity fibers and focusing on niche markets or lowering costs in hopes of competing with foreign imports.

In line with its poor performance, the industry is expected to consolidate over the next five years. Many companies have already closed unprofitable manufacturing plants and laid off workers to cut costs. This trend is projected to continue as companies struggling to remain profitable introduce more efficiency and cost-cutting programs.

Despite the fact that the Synthetic Fiber Manufacturing industry is made up of large multiproduct chemical companies, integrated petrochemical companies and diversified industrial firms, it has a low level of concentration, with the top four firms accounting for less than 30.0% of industry revenue. However, this degree of concentration varies by product segment. For example, in the cellulosic organic fiber product segment, the top four firms account for more than 90.0% of product revenue. In the polyester staple fiber product segment, the top four firms account for roughly 85.0% of industry capacity. “Over the past decade, the industry's degree of concentration has been affected by the number of mergers, acquisitions and exits that have occurred in line with its status as an industry in the decline stage of its life cycle,” said Nanfelt. This trend of growing concentration is expected to continue in the next five years and many firms struggle to be profitable and choose to leave the industry. For more information, visit IBISWorld’s Synthetic Fiber Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry consists of companies that are involved in the production of cellulosic and noncellulosic fibers and filaments in the form of monofilament, filament yarn, staple or tow. Key cellulosic fibers include rayon, acetate and lyocell. Noncellulosic organic fibers include acrylic fibers and filaments, acrylonitrile fibers and filaments, nylon fibers, polyester fibers, polyvinyl ester fibers and spandex fibers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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