The US textile industry has “cemented its position in the global market,” according to the National Council of Textile Organization’s (NCTO) new chairman Marty Moran, thanks to its productivity, flexibility and innovation.
At its 2019 State of the US Textile Industry Address earlier this week, the Washington, DC-based trade association representing domestic textile manufacturers outlined the key numbers for 2018 – including a 5.2% year-on-year jump in US manmade fibre and filament, textile and apparel shipments to US$76.8bn.
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2018 number crunch
The breakdown of 2018 shipments by industry sector is US$30bn for yarns and fabrics, $11.6bn for apparel, $7.7bn for man-made fibres and $27.4bn for non-apparel sewn products.
The sector’s supply chain in 2018 employed 594,147 workers – of whom 112,575 were in yarns and fabrics; 112,692 in apparel manufacturing; 25,100 in manmade fibres; 126,553 in cotton farming; 101,186 in wool growing; and 116,042 in non-apparel sewn products.
Exports of fibre, yarns, fabrics, made-ups and apparel were up 5.4% on 2017 to US$30.1bn – with shipments to NAFTA and DR-CAFTA countries accounting for 47.5% of all US textile supply chain exports. By sector, US$6.7bn worth of exports were cotton and wool, $4.4bn was in yarns, $9.1bn was fabrics, $3.8bn was non-apparel, and $6.1bn was apparel.
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By GlobalDataOf the $19.7bn in manufactured fibre, yarn and fabric exports, the largest markets were Mexico at $4.4bn, Canada at $2.1bn, China at $1.6bn, followed by Vietnam and Honduras at $1.5bn and $1.4bn respectively.
“The numbers show that the fundamentals for the US textile industry are sound,” asserts Moran, who is CEO of Buhler Quality Yarns, a fine-count yarn supplier headquartered in Jefferson, Georgia with facilities in America, Europe, the Middle East and Asia.
“This is true even though some markets for US textiles and apparel were soft last year. For the most part, any sluggishness was dues to factors beyond control, such as the disruption in the retail sector caused by the shifting of sales from brick-and-mortar outlets to the internet.
“With that said, the US textile industry’s commitment to capital re-investment and a continued emphasis on quality and innovation make it well-positioned to adapt to market changes and take advantage of opportunities as 2019 moves along.”
Trade policies
Turning to trade policies, Moran says the NCTO “fully endorses” US President Trump’s macro policy objectives of reshoring industry, fighting for free but fair trade, and enforcing US trade laws, adding that for decades US policy “systematically undervalued” the importance of domestic manufacturing.
The renegotiated US Mexico Canada Agreement (USMCA) represents a “demonstrative improvement” for US component part manufacturers, he says.
He also applauds the tackling of “China’s illegal trade practices” but says while many products identified for penalty tariffs were inputs, a larger opportunity would be on finished goods involving 100% Chinese fibre, yarn and fabric components, which would create benefits through the US supply chain. “The targeting of finished products would dramatically improve the chances of bringing about serious reforms.”
Talking about US trade negotiations with the EU, UK and Japan, Moran says the NCTO “welcomed the opportunity to gain greater access to these important overseas markets” and the reduction or elimination of tariffs would put US textile manufacturers “on a much more even footing” with some of the trading partners.
The NCTO is also calling for the US government to invest in improving automation for garment assembly as it shows “promising potential” to reshore US textile and apparel production and jobs.
“Although the US textile industry is world-class it cannot afford to rest. There will always be intense and sometimes unfair competition from abroad, changing consumer demands and inevitable economic downturns,” concludes Moran.
“Fortunately the Trump administration wants to spur manufacturing output and jobs. It is incumbent upon the US textile industry to seize this generational opportunity to usher in a new era of growth.”
