Home / Knowledge / News / Textiles / Synthetic fibre sector revenue to fall 1.2% in 2013
Synthetic fibre sector revenue to fall 1.2% in 2013
23
Oct '13
The Synthetic Fiber Manufacturing industry, which supplies fiber made from using petrochemicals to producers of apparel, plastics and other consumer goods, has endured considerable challenges in the five years to 2013. Purchases of synthetic fibers, which are inputs for products such as clothing and home furnishings, dropped as Americans drastically reduced spending on nonessential items during the recession.

According to IBISWorld Industry Analyst Leah Goddard, “As consumer spending started to regain momentum in 2010, downstream manufacturers increased production and thus purchases of synthetic fibers, allowing the Synthetic Fiber Manufacturing industry to achieve dramatic revenue growth that more than offset the previous drop.” Consequently, over the five years to 2013, revenue is anticipated to increase at an annualized rate of 1.9% to $8.5 billion.

Before the economic downturn, the Synthetic Fiber Manufacturing industry was already contracting due to its dependence on a declining consumer base as US apparel, carpet and textile mills gradually moved offshore. When the recession started in 2008 and continued into 2009, the dramatic reduction in demand from these downstream industries caused revenue to drop 14.4% in 2008 and 26.8% in 2009.

Profit also declined as input prices spiked for raw materials such as oil and wood pulp, increasing costs. “Although industry revenue grew 32.3% in 2010 and 12.2% in 2011, this growth has less to do with industry expansion and more to do with the rise in housing starts and disposable income levels, which drive demand for home furnishings and other consumer products,” says Goddard. Thus, revenue is expected to slow in the latter part of the five-year period due to decelerating production in downstream industries and rising input costs. As a result, IBISWorld estimates industry revenue to fall 1.2% in 2013.

Over the five years to 2018, the industry will stay fairly stable. Demand from carpet mills and plastics and rubber products manufacturers will modestly increase, offsetting declining demand from apparel manufacturers.

While some synthetic fiber manufacturers will offshore operations to countries with cheaper labor costs and less rigorous regulations, others plan to expand production in the United States. Exports will maintain their current share of industry revenue, and imports will retain their current portion of domestic demand. For these reasons, the Synthetic Fiber Manufacturing industry's revenue is projected to stay fairly steady in the five years to 2018.

IBIS World


Must ReadView All

Textiles | On 18th Aug 2017

Turkey imposes temporary duty on POY from 7 countries

Turkish ministry of economy has announced imposition of provisional...

Textiles | On 18th Aug 2017

GST return filing deadline for transitional credit

For businesses who want to avail the transitional input tax credit...

Apparel/Garments | On 18th Aug 2017

AEPC wants clarity on minimum wages for garment sector

The Apparel Export Promotion Council (AEPC) has urged the Indian...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search