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Edward Devlin / NYSE/NASDAQ/AMEX 09/02/2013 www.gigawealth.net  
 
Name:  Textiles Description:  US Textile Industry Author:  Edward Devlin  
 
Industry Analysis  
 
1. Importance Important  

textiles

 

Overview

 

The U.S. textile industry, its domestic suppliers and customers are comprised of the following: the textile industry; suppliers in the cotton, wool, and man-made fiber sectors; the U.S. textile machinery and textile chemical industries; and our customers in the U.S. apparel industry.  

 

The U.S. textile industry, suppliers and our customers are an important component of the U.S. economy and are found in every region of the country.  The industry provides much needed jobs in rural areas and has functioned as a springboard for workers out of poverty into good paying jobs for generations.  The industry is also a key contributor to our national defense and supplies over 8,000 products a year to our men and women in uniform. 

 

Over the past 30 years, the industry has become a major factor in hi-tech innovation.  Textile products are now major components in everything from heart valves and stents to aircraft bodies and advanced body armor.  In fact, in 2010 the textile sector alone contributed $26.3 billion to the U.S. Gross Domestic Product.  The U.S. textile industry consumed nearly 1.7 billion pounds of U.S. grown cotton in 2011. 

 

Investment

 

The U.S. textile industry invested $16.5 billion from 2001-2010.  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.

 

Exports

 

The U.S. textile industry is the third largest textile exporter in the world.  The industry primarily exports yarns and fabrics.  Textile exports in 2011 totaled over $17 billion dollars.  The industry exports to more than 50 countries, including 16 with export markets that purchase in excess of $100 million.

 

Source: http://www.ncto.org/ustextiles/index.asp

National Council of Textile Organizations

 

2. Wisdom Important  

textile mill

As capital goes, so goes textiles. Low capital rates, and low energy costs, lead to a competitive textile industry in the US.

3. Knowledge Important  

U.S. Textile Industry -- The Third Largest Exporter of Textile Products in the World

According to WTO statistics, the United States textile industry is the third largest exporter of textile products in the world with over $13 billion in exports in 2009.  Most of these exports (75%) go to countries in the Western Hemisphere that the United States has free trade or preferential trade agreements.  The industry has also built up export markets in some surprising places, including China, which now purchases half a billion dollars a year in U.S. textile products.  All told, the U.S. textile industry has export markets in excess of $100 million in over 20 countries. 

Source: http://www.ncto.org/tradejobs/

National Council of Textile Organizations

 

4. Current Assessment Awesome  

textile industry

The US Textile industry is enjoying a period of renewed growth, courtesy of low interest rates for investment in modernized plant and equipment, and decreasing energy costs. Revenues are steadily increasing. Costs are going down, due to lower cost of capital and lower energy costs. Profit margins and profits are increasing.

5. Future Assessment Good  

The US Textile industry will continue to benefit from low interest rates and decreasing energy costs for the forseeable future.

6. Risk Medium  

The risk to the Textile industry has a number of sources:

  • Interest rates - US interest rates are expected to increase as the US economy recovers. Higher interest rates hurt the US Textile industry by making the cost of capital more expensive
  • Energy costs - always volatile, set by the market, subject to market gyrations and dynamics
  • Foreign exchange rates - the strength of the dollar vs other currencies always impacts textile trade
 
 
Future Assessment Probabilities, Reasons and Explanations
 
   Possible Outcome Probability Value Reasons and Explanations
1. Awesome   > 10% 30%

Interest rates remain low, and energy costs continue to decrease, and dollar is weak.

2. Good   > 5% 50%

Interest rates remain low, and energy costs continue to decrease.

3. Fair   > 1% 20%
4. Bad   < 1% 0%
5. Terrible   < 0% 0%
 
 
Key Performance Indicators
 


Key Performance Indicator Importance   Current Assessment   Future Assessment   Risk  
1.  Cumulative Annual Growth Rate (CAGR)   Very important   Awesome   Awesome   Very Low
2.  Cumulative Annual Profit Growth Rate (CAPGR)   Very important   Awesome   Awesome   Very Low
3.  Internal Competition   Very important   Good   Good   Very Low
4.  Market Capitalization Growth Rate   Very important   Good   Good   Low
5.  New Entrants   Very important   Good   Good   Low
6.  Substitute Products or Services   Very important   Awesome   Awesome   Very Low
7.  Supplier's Power   Very important   Good   Good   Low
8.  Bankruptcies   Important   Good   Good   Low
9.  Barriers to Entry   Important   Good   Good   Very Low
10.  Buyer's Power   Important   Good   Good   Low
11.  Government Regulated Industry        
12.  Legal/Regulatory/Compliance Impact        
13.  Man Made Disaster Impact        
14.  Natural Disaster Impact        
 
 
Linked Entities


Companies Importance   Current Assessment   Future Assessment   Risk  
Crown Crafts, Inc.   Important   Awesome   Awesome   Low
Albany International Corporation   Important   Good   Good   Low
Culp, Inc.   Important   Awesome   Awesome   Low
Unifi, Inc.   Important   Awesome   Awesome   Low
Xerium Technologies, Inc.   Important   Good   Good   Low
Hallwood Group Incorporated   Important   Good   Good   Low
 
 
 
Associated Information
 
 
 
Hyperlinks to relevant information
 
National Council of Textile Organizations
US Textile History
US Textile News Headlines
International Wholesale Textile Sourcing Directory



 
 
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