This is a marketing research on the Textiles industry and can include information on the background, market structure, definitions,

competitors, trends and developments of textiles and is related to other apparel, clothing, yarn, thread and fiber.

Table of Contents

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Background Market Structure Industry Definitions Market Metrics Industry Players Trends and Recent Developments Sources

Background
Global market trends in the textile industry increasingly are being determined by the transition to a quota-free textile trade environment. The quota system that has been in place since the early 1960s ended on December 31, 2004. This situation is driving a realignment of markets and a restructuring of the industry that are well under way. The response of textile manufacturers to intensifying global competition has been threefold. First, industry product mixes are shifting among countries. There is ongoing rationalization of production to emphasize products in which the manufacturer has the greatest competitive advantages and deemphasize products that are more vulnerable to foreign competition. In the United States and other developed countries, this implies a de-emphasis on textile products consumed in the apparel industry and a greater emphasis on other products, such as home furnishings and industrial textiles. Second, companies continue to invest in new, more productive plant and equipment. Textile production is no longer a low-technology, labor-intensive industry enterprise. Textile firms around the world are under constant pressure to become more efficient through technology upgrades. Third and perhaps most important, manufacturing is expanding into countries close to home markets. This is being undertaken primarily to support production sharing arrangements for apparel, sometimes in partnership with customers, suppliers, or other textile manufacturers. Textiles refer to yarns, threads and wools that can be spun, woven, tufted, tied and otherwise used to manufacture cloth. Production of textiles has been altered almost beyond recognition by mass-production and the introduction of modern manufacturing techniques.

Contents
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1 Market Structure 2 Industry Definitions 3 Market Metrics 4 Industry Players 5 Trends and Recent Developments 6 Sources

Market Structure
Economies of scale in textile manufacturing are significant and create entry barriers in the market. The textile industry is more capital intensive than the clothing industry and is highly automated. It consists of spinning, weaving and finishing functions in integrated plants. For example, the approximate cost of a new fiber plant is $100 million depending on various factors. Costs of raw materials are volatile and can account for 50-60% of the cost of the finished products. For purposes of hedging against supply problems, many manufacturers are backward integrated into chemical intermediaries. Forward integration into apparel and product manufacturing is also seen in industry. In 1995, the World Trade Organization (WTO), in the Agreement on Textiles and Clothing (ATC), agreed that all quotas on textiles and clothing would disappear between WTO member countries on January 1, 2005. The expiration of ATC marked the end of quotas, limiting textile and clothing trade between the WTO members. Developing countries such as China, India and Pakistan had been the most restricted by the quotas. While India and China are likely to emerge as winners, the main losers after quota will be quota-restricted countries that had enjoyed the benefits and protection for more than 40 years. The post quota market has changed with producers already affected by significant changes in retailing. Large retailers are now buying up independent brands to give consumers more value and enhance their shopping experience. Manufacturers in developed countries are more likely to adapt by relocating operations to production centers in low wage countries. Some of the major textile industries can be divided as follows:

Awnings, textile Blankets Bags or sacks, textile Blinds, textile Canvas goods Cordage Elasticized fabrics Fabrics, textile Felt (except floor coverings) Glass fiber fabrics Household linen Lace Narrow fabrics Netting Rope (except wire rope) Sailcloth Sewing thread Soft furnishings String Tarpaulins Tents Thread Towels Trimmings, textile Yarns

For U.S. textile producers, the most important regional expansion and partnering are taking place with Mexico. Broad market forces, including Asian pricing pressures, have accelerated the flow of textile capital into Mexico.

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Industry Definitions
Acrylic
manufactured fiber derived from polyacrylonitrile. Its major properties include a soft, wool-like hand, machine washable and dryable, excellent color retention. Solution-dyed versions have excellent resistance to sunlight and chlorine degradation.

Anti-dumping duty
An extra duty imposed on an imported product by an importing country (or group of countries, as in the case of the EU) to compensate for the dumping of goods by a foreign supplier.

Aramid
The generic name for a special group of synthetic fibers (aromatic polyamide) having high strength; examples are "Kevlar" and "Twaron".

Calico
Tightly woven cotton type fabric with an all-over print, usually a small floral pattern on a contrasting background color. Common end-uses include dresses, aprons, and quilts.

Countervailing duty

An extra duty imposed on an imported product by an importing country (or group of countries, as in the case of the EU) to compensate for subsidies deemed to be illegal which are given to the manufacturer of the product in the exporting country.

Delocalization
The geographical move of a production unit to a low cost country. (Note that the term is increasingly being used to describe all forms of shifts in production, including foreign sourcing and subcontracting.)

Industrial textiles
A category of technical textiles used as part of an industrial process, or incorporated into final products.

Lycra
DuPont's brand name for its elastane or spandex fiber.

PET
Polyethylene terephthalate, the most common form of polyester.

Polyester
A manufactured fiber introduced in the early 1950s, and is second only to cotton in worldwide use. Polyester has high strength (although somewhat lower than nylon), excellent resiliency, and high abrasion resistance. Low absorbency allows the fiber to dry quickly.

Quota
A quantitative restraint imposed by an importing country on an exporting country - or established by agreement between the trading partners - which is designed to limit shipments of a product from the exporting to the importing country.

Spandex fiber
The generic name used in the USA to denote elastane fiber. A manufactured elastomeric fiber that can be repeatedly stretched over 500% without breaking, and will still recover to its original length.

Technical textiles
Textile materials and products manufactured primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics. End uses include aerospace, industrial, marine, medical, military, safety and transport textiles, and geotextiles.

Unit production systems

An advanced apparel manufacturing system in which a single garment is progressed through a sequence of operations. Using a unit production system, a garment is automatically transported via a computer-controlled overhead hanging system, which has been ergonomically designed to reduce the amount of handling of the garment (see also progressive bundle system).

Yarn

A continuous strand of textile fibers created when a cluster of individual fibers are twisted together. These long yarns are used to create fabrics, either by knitting or weaving.

Yarn Numbering System

Systems for sizing yarn fall into two basic types. The yarn number is based on the length of yarn needed to make up a specified weight. The finer the yarn, the higher the number. Cotton, wool and linen are numbered with such systems. The yarn number is based on the mass of a specified length of yarn. The finer the yarn, the lower the number. Silk, synthetic fibers and jute are numbered with such systems.

Textile HS codes
Harmonized System Codes (HS Codes) are a government, regulated system used to classify products and their corresponding tariffs. The Harmonized System is an internationally developed and implemented commodity-description and coding system, on which the tariffs of most countries of the world (including the NAFTA countries) are based.

Manufactured Fibers
It is important to understand that all manufactured fibers are not alike. Each fiber has a unique composition and physical properties. The U. S. Federal Trade Commission has established generic names and definitions for manufactured fibers, including acetate, acrylic, lyocell, modacrylic, nylon, polyester, polypropylene (olefin), rayon, and spandex.

Market Metrics
U.S.

__________________________________________________________________________ U.S. Fabric Finishing

The textile industry is currently more than US $400 billion and continues to expand. The globalization of the textile trade has increased the outsourcing of production. A variety of fabrics are used worldwide in different applications such as apparel, household textiles and furnishings, medical equipment, industrial and technical products. Recent studies have highlighted that fabric weaving alone consumes around 28 million tons of fiber annually. It is predicted that global production will grow by 25% between 2002 and 2010, to reach more than 35 million tons and Asia is one of the key regions for growth. The United States ships raw materials to other countries in which the products are made. The cost of labor is cheaper and provides retail companies the ability to buy and sell at lower costs. This increases competitiveness and has led to several textile companies having to shut down operations. At present, there is a minor trade war developing between the United States and China in regards to textiles and apparel. Chinese exports of textiles to the United States increased by 320 percent between January 2002 and November 2003 while prices of Chinese textiles and apparel declined by 55 percent. The growth in imports of textiles to U.S. during 1995 to 2002 was about 9% annually in dollar terms.

U.S. Imports of Textiles, Textile Products and Apparel Top Trading Partners (Values in US $ million) Country 2005 Jul. 2007 2004 9,675.4 8,736.7 6,086.1 3,589.3 18,242.2 557.0 8,208.1 459.5 2,637.0 446.5 4,119.4 367.5 2,607.1 299.0 2,656.3 298.2 2,557.4 226.0 2,338.8 299.2 3,369.2 340.6 3,882.7 436.2 5,532.5 391.4 3,308.3 564.3 6,846.2 8,684.5 7,802.9 5,696.8 2,987.7 99,196.8 88,422.7 69,077.6 30,119.1 Jun. 2007 2006

Total Imports, All Countries 95,571.6 69,831.9 Total Imports, Top 25 Countries 84,157.6 76,646.8 Total Imports, Excluding China 69,554.0 71,589.7 China 26,017.5 Mexico 7,627.1 Vietnam 2,793.2 India 5,131.1 Indonesia 3,069.5 Pakistan 3,010.5 Italy 2,420.0

Bangladesh 2,485.7 2,092.9 Honduras 2,697.8 2,751.7 Cambodia 1,727.4 1,442.2 Hong Kong 3,643.1 4,025.3 Canada 3,115.3 3,333.3 Thailand 2,151.3 2,183.0 Philippines 1,911.1 1,900.9 El Salvador 1,644.7 1,754.5 Sri Lanka 1,704.2 1,606.7 Taiwan 1,737.7 2,214.8 Korea, South 2,098.3 2,768.8 Guatemala 1,844.0 1,971.8 Turkey 1,643.5 1,813.3 Jordan 1,083.0 957.0 Macao 1,199.8 1,437.9 Dominican Republic 1,861.9 2,074.4 Nicaragua 716.5 596.1 Peru 823.4 694.4

263.8 238.0 223.0 203.3 199.4 190.6 166.2 143.7 140.8 130.5 129.4 117.1 116.1 98.3 97.2 93.6 85.8 82.9

264.6 226.5 194.6 181.4 209.2 166.3 152.2 133.4 144.8 113.1 120.6 127.4 90.8 91.2 97.2 93.7 82.3 78.1

3,025.3 2,528.6 2,151.2 2,907.3 2,870.8 2,150.7 2,074.0 1,432.4 1,733.2 1,576.9 1,789.9 1,697.9 1,365.6 1,253.9 1,163.5 1,557.7 880.1 866.6

Source: U.S. Dept. of Commerce, Census Bureau, Foreign Trade Division</pre>

GROSS OUTPUT by U.S. Industry [Billions of dollars] Release date: April 24, 2007 Gross output consists of sales, or receipts, and other operating income, plus commodity taxes and changes in inventories. <pre> 2004 2000 2005 18,403.2 18,788.4 76.2 74.6 2001 2002 2003

All industries 18,186.5 19,757.5 21,306.9 22,857.1 Textile mills and textile product mills 84.5 72.4 71.4 68.6

Industry Players
These are major players in this market, but not an exhaustive list of all key firms. Revenues, Net Income and Market Capitalization are expressed in US$ Millions.

Research and development and design are important in industrial textiles where the material technology provides competitive advantage. In industrial countries, notably the United States, an increasing share of the textile sector produces household appliances and other industrial fabrics such as for the furniture and car industries. This is a more R&D intensive segment of the industry and subject to less frequent changes in patterns, material and colors. Only about a third of US textile production was used for clothing in the late 1990s.

Mohawk Industries, Inc., is the market leader both in terms of market capitalization and annual sales in 2006. It engages
in the production and sale of floor covering products for residential and commercial applications in the United States and Europe. It operates in three segments: Mohawk, Dal-Tile, and Unilin. The Mohawk segment designs, manufactures, and distributes floor covering products, including carpets, rugs, ceramic tiles, hardwood, resilient, and laminates. It markets its products through independent floor covering retailers, home centers, mass merchandisers, department stores, commercial dealers, and commercial end users, as well as through private labeling programs.

 Albany International Corp. produces paper machine clothing and doors worldwide. It operates in three segments: Paper
Machine Clothing, Applied Technologies, and Albany Door Systems. Paper Machine Clothing segment includes fabrics and belts used in the manufacture of paper and paperboard. This segment offers forming, pressing, and dryer fabrics, and process belts.

Polymer Group, Inc. manufactures and markets nonwoven and oriented polyolefin products. Its Nonwovens division
provides nonwoven materials, which are used in diapers, training pants, feminine sanitary protection, adult incontinence, baby wipes, and consumer wiping products. Its products are used in medical applications, such as wound care sponges and dressings, and disposable surgical packs, as well as for apparel, including operating room gowns and drapes, face masks, and shoe covers; and in industrial applications.

Interface, Inc. engages in the design, production, and sale of modular carpet products in Americas, Europe, and AsiaPacific. It also manufactures broadloom carpet, panel fabrics, and upholstery fabrics for the commercial interiors industry.

International Textile Group, Inc., together with its subsidiaries, operates as a textile manufacturer. The company produces
automotive airbag fabrics and airbag cushions for automotive airbag modules. International Textile Group also manufactures and sells various technical and value added fabrics for use in fire service apparel, ballistics materials, filtration, military fabrics, and outdoor awnings and covers. The company also produces denim, cotton, synthetic and worsted apparel fabrics for use in bottom garments, such as pants, skirts, and shorts. It manufactures fabrics for military dress uniforms and battle dress uniforms for the U.S. Government and government contractors.

Xerium Technologies, Inc. manufactures and supplies consumable products used in the production of paper clothing and
roll covers.

The Dixie Group, Inc. engages in the manufacture, marketing, and sale of carpets and rugs to residential and commercial
customers in the United States.

Textile Industry Market Capitalization * Company Market Capitalization (in US $ billions) 5.63 1.14 1.12 0.53 0.24 0.12 0.10

Mohawk Industries Interface Inc. Albany International Polymer Group Xerium Technologies Dixie Group International Textile Group

Market Share based on Annual Sales 2006 (in billions)* Company Share % Annual Sales 2006 (in US $ billions) Market

Mohawk Industries 63.5 Albany International 8.6 Polymer Group 8.2 Interface Inc. 8.1 International Textile Group 5.8 Xerium Technologies 4.8 Dixie Group 1.0 Total 100.0

7.90 1.07 1.02 1.01 0.72 0.60 0.12 12.44

Trends and Recent Developments

To sharpen their competitive edge, many U.S. textile companies are (1) restructuring their operations through mergers, acquisitions, and divestitures, (2) concentrating on more profitable niche markets and product diversification, (3) improving productivity through new capital investment, (4) building strategic partnerships with retail and apparel companies, and (5) using quick response and other communication-oriented techniques to enhance their overall flexibility and competitiveness. U.S. textile companies have been acting to improve their competitive positions through reorganization, restructuring, and downsizing. By merging, textile companies gain market share and access to capital. Through acquisitions and vertical integration, textile companies have been able to achieve economies of scale and expand the range of their services. Another trend is for U.S. mills and converters to move slowly away from staple fabrics for the apparel industry and toward niche products and diversification into multiple sewn products markets. Technical fibers for sportswear and active-wear have experienced tremendous growth. Other profitable growth opportunities in non-apparel fabric markets include automotive, medical, fire safety, and telecommunications (fiber-optics). The U.S. textile industry is a technologically advanced industry, achieving such advancement through restructuring and investment in modern machinery. Spinning, weaving, and knitting processes are highly modernized in many companies, and this has allowed them to reduce the share of labor in production costs and increase quality and speed.

There has been a substantial job loss in the U.S. textile industry, a trend that has been ongoing for almost 30 years. This job loss can be attributed partly to imports, but like many other industries in the United States, the textile industry has been able to increase its production through new technologies while decreasing the number of employees. Overall textile production has increased more than 20 percent in fifteen years even though industry employment has dropped over 13 percent. The textile industry continues to invest in machinery and technology, spending upward of $2 billion a year to maintain modern manufacturing facilities. Continued investment in modern technology, including information technology, is very important. Textile production is very capital intensive, and up-to-date technology is essential to meet the increasingly rigorous demand for high-quality products. Proximity to major markets has assumed increasing economic significance and tariffs are restraining trade due to the fact that products cross borders several times. Developing countries are catching up with China in terms of unit labor costs in the textile and clothing sector. Future trends include multifunctional textiles, intelligent textiles, eco-textiles, e-textiles and customized textiles in the textile-apparel industry. Nano-Tex is the company manufacturing enhanced textiles which are stain resistant transparent fabrics manufactured using nanotechnology.