National Council of Textile Organizations

The manufacturing sector continues to be an economic growth engine for the United States, and the textile industry is a vital component. The textile-manufacturing sector provides jobs that pay more than twice as much as many retail jobs.

The textile industry at one time was a cornerstone of the U.S. economy and today continues to be a significant sector of U.S. manufacturing. The development of the U.S. textile industry transformed the country, first in New England, and later in the Southeast. The industry raised the standard of living for Americans by providing high wages to workers and fairly priced high quality goods to consumers. Textile companies are still the backbone of rural economies in many states, particularly in small and rural towns throughout the southeast.

Job losses since the 1990s have led some people to declare that the industry is finished in the U.S. Nothing could be further from the truth. New investment in plant and equipment, gains in productivity and the development of new products and offerings through robust R&D demonstrate that the industry is changing in order to remain a competitive centerpiece in the global economy. Textile workers today require more education than ever before, requiring greater corporate investment in their skills.

The U.S. textile and apparel industries directly employ 412,000 people (June 2010). In addition, more than 116,000 people are employed by the cotton industry and nearly 27,000 in the manmade fiber industry.

Industry Sector	Employees	Industry Shipments (YTD 6/2010)
NAICS 313 Textile Mills	124,000	$14,071,000,000
NAICS 314 Textile Product Mills	123,000	$11,384,000,000
NAICS 315 Apparel	165,000	$7,775,000,000

From 2001-2008, the U.S. textile industry invested more than $14.4 billion. This has allowed the U.S. industry to increase productivity gains that have surpassed all other sectors. Investment has been crucial for the global competitiveness of the U.S. industry. The U.S. textile industry is export intensive and is the third largest textile exporter in the world.

Textile jobs support U.S. exports. More than one-third of U.S. textile workers jobs are tied to exports, and that number continues to grow each year. In fact, the textile industry is more export reliant than almost any other manufacturing sector in the United State. That is why the textile industry supports trade policies that provide meaningful export opportunities for U.S. textiles workers and oppose those that force U.S. textile jobs overseas. The U.S. textile industry exported nearly $7.8 billion in the first half of 2010.

Government statistics show that in major textile producing states, a single textile job supports three additional jobs in and out of the textile industry. This is because a single textile product requires inputs from many sources in order to be produced. These includes the raw material (the cotton grower or fiber producer), the yarn, the fabric and processes to dye, print and finish the final product. And beyond the immediate textile sector, textile jobs support other jobs in the chemical, energy, shipping, rail, banking, water and energy production sectors.

Some free market theorists claim that textile job losses do not matter because consumers benefit from low-priced imports, and unemployed workers can find new jobs -- presumably in retail. However, analyses of communities where textile plants have closed show that most workers are forced to take much lower paying jobs, if they are even able to get jobs. Textile manufacturing jobs offer compensation and benefits that more than double the pay of a worker in the retail sector. Average textile earnings in 2009 were $517 per week in 2009. Average weekly pay in retail clothing stores were less than half, averaging only $213.

Poorly devised trade and regulatory policies have resulted in the loss of 5.4 million jobs in American manufacturing since 2000. More than 12 percent of the manufacturing jobs lost were in the textile and apparel industries. The loss of textile jobs has negative repercussions throughout the industry and the surrounding region.

Higher unemployment or employment in lower paying jobs hurts the tax base of local, state and federal governments. Experience has shown that many smaller communities are left with unsustainable debt when factories close, particularly when local governments have invested in infrastructure projects such as water treatment facilities in order to support the factory. In addition, many U.S. textile companies provide unrelated yet important services to their communities.

For example: several NCTO member companies provide college scholarships to the children of employees and in some cases, to those in the local communities, fund recreation centers, sports teams, pay for lighting in downtown areas, and fund holiday and seasonal community events.

Textile jobs support our national defense. The U.S. military purchases over 8,000 different textile products each year. Textiles are vital for uniforms, parachutes, tents, and a variety of other products that keep our service members safe. In times of conflict and peace, the U.S. textile industry is reliable for its fast response and high quality products and materials supplied to all branches of the U.S. military. Most importantly, in time of need, U.S. manufacturers are the most secure source for our military rather than relying on foreign manufacturers for uniforms and equipment/gear made from textiles.

NCTO is fighting for fair and reciprocal trade policies that offer genuine trade/export opportunities for U.S. textile companies. NCTO works to promote trade agreements that promote beneficiary countries by respecting a strict yarn forward rule of origin which in order to be effective must be supported by strong customs enforcement. NCTO also works to expand the Berry Amendment to other federal agencies. The Berry Amendment requires the DoD to source all textile and apparel products 100 percent domestically.

NCTO is working with business leaders and government policy makers to maintain and enhance a business-friendly environment for U.S. manufacturers.