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Reshoring in Textiles—True Trend or Anecdote? 

  • September 2015
  • -
  • Frost & Sullivan
  • -
  • 33 pages

Summary

Table of Contents

Reshoring in Textiles—True Trend or Anecdote? : The Textile Market Returns to the Southern States

The research provides an insight into the trend for reshoring in the textile industry. It evaluates the market opportunity for growth, especially within the United States as reshoring is gaining momentum in the textile industry. The research provides an impact mapping of the key growth drivers and restraints. The research also discusses the market dynamics of the textile industry. The base year of the study is 2014, with forecasts provided up to 2018.

Key Findings

- The North American market for textiles is expected to witness a new wave of growth, fostered by a returning market shaped by multiple levels of cost reduction.
-In the total value chain for textiles, it is evident that the negligible cost reduction of outsourcing is balanced by the high quality and easy logistics in the domestic market.

-Cost has played a critical role in outsourcing the industry to the far East. In recent years, as costs of labor in outsourced regions have increased, the US textile industry is showing signs of recovering from a decade long exodus.

-Although the primary reason that spearheaded the outsourcing was the high cost of labor, the US is now cost comparable with other attractive regions primarily due to increased automation in the mill.

-With the established industry already present in the Southern states, the US is attracting several manufacturers to source domestically, thereby offering several advantages such as flexibility of design and shorter lead times to get the product to market.

-The trend is expected to gradually ramp up over the next to years. While some of the largest yarn mills are in China, India, and Mexico, the US continues to regain much ground in enabling growth of the textile industry.

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