Los Angeles, CA (PRWEB) June 30, 2012
The Textile Mills industry has experienced a sharp decline over the five years to 2012. More firms are outsourcing manufacturing activities to low-cost countries, and the global recession has affected demand and exchange rates, making the economic environment difficult for players, says IBISWorld industry analyst Nikoleta Panteva. Over the five years to 2012, IBISWorld estimates that revenue will decline at an average annual rate of 5.2% to $42.6 billion, including a 0.6% drop in 2012. Downstream apparel manufacturers have largely moved their operations offshore, taking entire supply chains with them and limiting the presence of textile mills in the United States.
Along with a decline in per capita disposable income, offshoring has reduced demand for industry products. The situation is not expected to ease much over the five years to 2017. IBISWorld forecasts that revenue will continue to fall, and enterprise numbers will also decline. As downstream manufacturers and industry participants seek out lower operational costs by moving production offshore, the size of the domestic industry will continue to shrink, continues Panteva. However, not all product segments will be shifted overseas; non-woven fabrics are expected to remain part of the domestic industry because their advanced technology will prevent cost-efficiency in offshoring. Many low-cost countries are not well equipped to produce these specialized materials, so mill owners will stay put, changing the structure of the US Textile Mills industry and keeping it relevant.
There are no major players in this industry. The highly competitive nature of this industry, along with declines in demand for the industry's products from downstream firms, will continue to place pressure on participants to develop new products to increase market share and to maintain profitability. Industry concentration has decreased over the past few years due to companies outsourcing large-scale production overseas, with smaller niche operators remaining or being integrated into larger retailing or manufacturing firms. International trade is also expected to play a larger role in next five years, with imports growing over the next five years. Countries like China and India will take over the bulk of low-price to mid-price textile production. Exports are also forecast to increase while the US dollar remains weak. The United States will be the source for high-end and specialized materials, boosting export values by the end of 2017. For more information, visit IBISWorld’s Textile Mills in the US industry report page.
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IBISWorld industry Report Key Topics
This industry is a collection of a variety of textile manufacturers. Most notably, establishments categorized in this industry spin yarn from various fibers, manufacture woven and non-woven fabrics, produce window curtains and drapes, and finish and coat an array of textile products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 http://www.ibisworld.com or call 1-800-330-3772.