Home / Knowledge / News / Textiles / Signs of green shoots in US textile industry
Signs of green shoots in US textile industry
20
Nov '13
The ‘Made in China’ downturn is fast gaining pace with manufacturers considering moving to US for production, thanks to the declining cost of US energy due to its new gas and oil fracking breakthroughs and rising wage costs in the Asia’s largest economy.

A recent report from the Boston Consulting Group, (BCG) revealed that the US will move closer to China in terms of production costs. Furthermore, the report also said that, by 2015, the US production costs will fall between 8-18 per cent, much below the costs of other major countries including Germany, Japan, the United Kingdom, France and Italy.

The green shoots of revival in the American textile industry are already visible from the earnings of major American textile firms in the second quarter. Strong evidence to this matter comes from Uncle Sam’s second quarter 2013 numbers which put the US Textile industry’s net profits at USD 505 million, up 31 per cent over the corresponding period of previous year.

Also domestic apparel manufacturers have recorded a growth of around 14 per cent in the second quarter over the year ago period. On margins front, textile mills have also recorded a growth of 100 basis points over the comparable period of last year.

On the other hand, growth of China's textile industry slowed in the first five months of the year, the reports suggest. Statistics from the General Administration of Customs revealed that China’s export value of textiles and garments for June was USD 24.1 billion-- 8.5 percentage points lower than in the first five months of 2013.

There’s more good news for the US textile industry—the trend is likely to continue going ahead too, driven by improved pace of economic growth. The US economy expanded at 2.8 per cent in the third quarter ended September 2013 as against the expectations of 2-2.2 per cent by analysts. Moreover, trend also suggests that the US labor and material costs will remain under control as compared to China, once favored for its low costs.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Warangal textile park gets environment clearance

The Kakatiya Mega Textile Park, coming up in Warangal district of...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Nisha Chanda
Whistling Woods International School of Fashion

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

July 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

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

Yes No

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

Yes No

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


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



X