U.S. Textile Site Selection – The Resurgence of a Legacy Industry

A Revival of U.S. Textile Manufacturing?

The U.S. textile industry has been declining for decades due to extensive offshoring and globalization efforts, however, a revival may now be underway. Rising labor costs overseas, tariffs, supply chain disruptions, a growing consumer preference for sustainability, and innovation in manufacturing are fueling this revival. This marks a key moment for U.S. textile manufacturing as the industry repositions itself as a leader in advanced fabric technology and sustainable textile production.

Site Selection Group, a full-service location advisory, economic incentive, and real estate services firm, is on the front lines of site selection projects for manufacturers. With the increasing demand for advanced materials required by high-tech industries such as automotive, aerospace, and medical technology, we anticipate a change in real estate market dynamics that will likely benefit manufacturers exploring site selection for advanced textile manufacturing.

Key Drivers of the Resurgence

1. Economic Shifts and Policy Support

The U.S. textile industry's comeback started gaining momentum over a decade ago. The Trump Administration’s "America First" policies, particularly tariffs on Chinese goods, provided initial traction. More recently, global supply chain disruptions during the COVID-19 pandemic underscored the risks of over-reliance on offshore production. Increased shipping costs and lead times made domestic manufacturing more appealing for sectors like personal protective equipment (PPE), as demand surged during the pandemic.

Organizations like the National Council of Textile Organizations (NCTO) worked to close trade loopholes and enforce fair competition, strengthening the domestic industry's position. For example, the push to eliminate the "de minimis" provision that allows duty-free imports of small shipments from China has been pivotal in leveling the playing field for U.S. manufacturers.

2. Rising Consumer Demand for Sustainability

The shift toward ethical and sustainable sourcing has created new opportunities for U.S. textile producers. Consumers increasingly prioritize products manufactured with strong labor protections and lower environmental impact. For many companies, the best solution to meet these consumer demands is to locate operations in the United States. Brands are responding by reshoring production to align with these consumer values. For example, Patagonia’s focus on domestically sourced, sustainable materials has set a precedent in the industry, inspiring other brands to follow suit. 

3. Growth of Nonwoven Fabrics in High-Tech Applications

A standout segment driving U.S. textile growth is nonwovens. These fabrics, produced without traditional weaving or knitting, offer superior cleanliness, durability, and flexibility. They have become essential for a range of high-tech and industrial applications, including healthcare, where the COVID-19 pandemic amplified demand for personal protective equipment (PPE), such as masks and gowns.

According to Mordor Intelligence, the U.S. nonwoven fabric market is projected to grow at a compound annual growth rate (CAGR) of 5.6% from 2022 to 2027, driven by demand in healthcare, automotive, construction, semiconductors, electric vehicle (EV) batteries, and filtration systems. The adoption of these materials is proving to become a significant part of the textile industry in the United States. Grand View Research estimates that the global nonwoven fabrics market will reach a valuation of over $68 billion by 2030, with North America being a significant production center. 

Emerging trends noted by The Nonwovens Institute include the development of smart nonwovens equipped with sensors and functionalities tailored for medical and industrial applications. This includes innovations such as antimicrobial coatings and advanced filtration capabilities. In the automotive manufacturing market, manufacturers use nonwoven materials for soundproofing and filtration, improving vehicle efficiency. In construction, nonwovens enhance roofing and insulation with superior thermal resistance and moisture control. The aerospace industry adopts these fabrics for their lightweight yet durable properties, thus supporting more fuel-efficient aircraft. 

Investment in “Made in America" Textiles

The U.S. textile market reached a valuation of over $60 billion in 2022, largely due to the over $20 billion invested in new plants and equipment across the U.S. textile industry since 2012. These investments reflect the sector’s focus on advanced manufacturing technologies, such as automation and sustainable practices.

One of the key benefits of U.S.-based textile production is the ability to offer higher quality, customizable products with shorter lead times. North Carolina-based textile firms, for instance, have reported lead time reductions of up to 30% compared to overseas production. Domestic manufacturing allows firms to respond quickly to changing market demands and customer needs. 

Furthermore, "Made in America" branding carries a strong global reputation for quality and ethical production, with surveys showing over 70% of U.S. consumers prefer locally manufactured goods for ethical and quality reasons. By maintaining closer control over production, American textile manufacturers ensure compliance with stringent environmental and labor standards, reducing carbon emissions by an estimated 40% compared to imports, while meeting the growing demand for sustainability.

Regional Advantages

While the Southeast and Northeast have long been the epicenters of U.S. textile production, the Southeast remains a focus for new site selection investments. Georgia, North Carolina, and South Carolina are prime examples of states with a rich textile history and robust workforce training programs, both essential for retraining workers as these industries begin revitalizing with new technology. These states, among others, provide access to well-connected transportation networks and proximity to raw material suppliers, manufacturers (specifically bio-medical and automotive), and major consumer markets, reducing logistics costs for manufacturers.

Challenges

One significant challenge for U.S. textile manufacturers is the high cost of production compared to other parts of the world. Labor costs in the U.S., according to the Bureau of Labor Statistics, are 30-40% higher than in key textile-producing countries like China and India. Environmental regulations, such as those enforced by the Environmental Protection Agency (EPA), also raise expenses. For instance, the Clean Water Act requires sophisticated filtration systems, costing manufacturers significant amounts annually. While these measures reduce pollution by an estimated 50% compared to offshore production (Data Insights Market, 2023), they make U.S. producers less competitive in price-sensitive markets.

To offset these challenges, many manufacturers are focusing on automation, energy-efficient technologies, and lean manufacturing practices. Many states now provide customized training programs and targeted incentives to align with company needs and consumer demand for sustainably and ethically produced goods, ensuring they remain competitive.

Conclusion

The revival of U.S. textile manufacturing marks a turning point for the industry. Backed by economic and policy shifts, consumer demand, and technological advancements, the sector is well-positioned for sustained growth. Outstanding sectors such as nonwoven fabrics have been pivotal in driving technological advancements and capitalizing on market demand. The rapid adoption of smart textiles and automation in nonwoven fabric production has further solidified its role as a leader in U.S. textile manufacturing trends. These examples demonstrate how the industry is reclaiming its position as a global leader in innovative and sustainable manufacturing.

Whether through investments in high-tech fabrics or sustainable practices, the industry is proving that American textiles are not just making a comeback—advanced textiles may just be the reason for a textile manufacturing revival in the United States.