How did the textile industry do in the year 2014? It did not turn out all bad for the industry as some might have pessimistically predicted. The industry was indeed affected with the political clamor and international uncertainties of the global market. However, market analysts are seeing a bright future for the textile industry.
Textile manufacturers and apparel executives are expecting a strong momentum of textile profiteering in the next years. There are evidences to back the theory. These are the factors that were considered by analysts in rounding up with the conclusion:
– There has been insignificant cost difference between US and foreign products. In the past years, the gap was very wide. However, it has significantly narrowed today. It is believed that the gap will completely disappear for some product lines as the labor cost in other countries doubled.
– There is an increase in US innovation and research in the textile industry. Most domestic companies are stepping up their game in finding means to produce enhanced and unique products with great quality.
– Deliveries of products are much improved. Buyers in the US are confident that US made products are far more superior in contrast to those imported from other countries.
– There is a trend of strong capital spending among companies. It has been reported that manufacturers shell out as much as $1 billion every year to increase production. US based mills are spending a larger chunk of their dollar sales when compared ten years ago. The money goes to modernization and increasing production capacity.
– Productivity is increasing. With the strong capital spending of companies, this would mean increased productivity. According to study, textile efficiency in the last few years is averaging between the ranges of 3 to 4 percent. This makes the textile industry one of the leading industries in the US market.
– People are drawn to products with the Made in USA words etched in them. The markings usually distinguish the product to be of better quality.
– Exports to other countries have increased. Today, US export of textile is enjoying an increase of 30 percent from a decade ago.