Multiple supply chain disruptions during the pandemic provided a great fillip to the textile and apparel (T&A) trade in the US as production reached a record high of $28 billion in 2022, as per statistics from the US Bureau of Economic Analysis.
T&A exports from the country jumped by 12 per cent to over $24.8 billion in 2022, show figures from the study by the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce. The study details the production and export practices of 432 US textiles and apparel manufacturers.
A study by Shenglu Fashion shows, textile manufacturers in the US are concentrated in a few regions whereas apparel manufacturers are spread across the country. Both textile and apparel manufacturers have a large concentration of small and medium-sized enterprises (SMEs). They also have limited vertical manufacturing capability.
Most of the T&A manufacturers in the US use imported components, as per the OTEXA study. The likelihood of imported components being used is more amongst smaller T&A manufacturers, indicating a need to support these manufacturers to access textile input through mechanisms such as the Miscellaneous Tariff Bill (MTB).
The study further says, most of the exports markets for US-made T&A products are concentrated with 72 per cent of apparel mills and 57 per cent of home textiles manufacturers selling their products in less than two markets. These manufacturers sell a higher percentage of their goods in the domestic market. The markets for US technical textile manufacturers were most diverse with nearly 40 per cent exporting to more than ten countries.
Besides the Western Hemisphere, around 50 per cent of US textile and apparel manufacturers also export to Asia, Europe, and the rest of the world, as per the database with OTEXA. .
Additionally, over 50 per cent of US T&A exporters leveraged US free trade agreements (FTAs). The use of FTAs was more common amongst textile mills in the US rather than apparel manufacturers. These exporters also used the USMCA agreement in large proportion to boost trade between the two countries.
