U.S. Textile Industry Faces Pressures from Tariffs, Labor Shortages, and Global Competition
The U.S. textile industry is navigating a difficult combination of trade uncertainty, weak demand, labor shortages, and intense global competition. Executives say these pressures are arriving at the same time, making it harder for manufacturers to protect existing operations, plan capital investments, and build a stable strategy for the future.
In an interview published by Textile Technology Source, Kimberly Glas, president and CEO of the National Council of Textile Organizations, described the current operating environment as unusually difficult. Her comments came as trade rules continued to change, including new duties connected to forced labor enforcement and fresh tariffs affecting Canadian goods.
For textile manufacturers, the challenge is not limited to one policy decision or one market problem. Companies must manage the cost of sourcing materials, machinery, and other inputs while also responding to uncertain demand and competition from overseas producers. At the same time, many businesses are attempting to recruit and retain workers in an industry that is becoming more automated and technically demanding.
The result is an operating environment in which decisions about production, logistics, electronics, equipment, and long-term investment are increasingly connected to trade policy. Companies are being forced to consider not only what they make, but also where they source inputs, how they move goods, and which markets offer the strongest opportunity for growth.
Plant Closures Reflect a Wider Industry Contraction
Glas said the U.S. textile industry has lost 43 operations over the past two years. That figure reflects the scale of the contraction facing manufacturers and the consequences of a policy environment that companies may find difficult to anticipate.
When trade rules change rapidly, businesses can struggle to plan production schedules, sourcing programs, and capital spending. Textile operations often depend on specialized machinery, raw materials, and complex supply chains. If tariffs affect those inputs, manufacturers may face higher expenses even when the policy objective is to support domestic production.
Glas linked the closures to a situation in which policy changes arrive faster than companies can plan around them. She also said some overseas producers benefit from subsidies or other measures that help them place low-priced goods in the U.S. market.
That combination creates a difficult competitive imbalance. U.S. manufacturers may face higher operating costs while competing against imported products sold at lower prices. The pressure can affect every stage of the business, from sourcing and production to logistics, pricing, and customer relationships.
Textile World’s 2024 state-of-the-industry report also described continued plant closures and layoffs. At the same time, the report said advocacy and closer cooperation with Western Hemisphere partners remain important to rebuilding investment and employment.
The emphasis on regional cooperation reflects the importance of supply-chain planning. Manufacturers are increasingly looking at the broader North American production network rather than evaluating individual factories in isolation. A textile company’s ability to compete may depend on how effectively it can connect domestic production with suppliers, customers, and logistics partners across the region.
Tariffs Create Both Protection and Cost Risks
Tariffs remain central to the industry’s competitiveness debate. Glas said tariffs can protect domestic production when they are applied predictably and to the right products. However, she also warned that tariffs can become counterproductive when they increase the cost of machinery and inputs required for reinvestment in the United States.
This distinction is important for manufacturers considering modernization. A company may want to buy more efficient equipment, expand production, or adopt advanced systems, but cost uncertainty can delay the decision. The same concern applies to raw materials and other inputs that are essential to manufacturing.
The effect extends beyond the factory floor. Higher input costs may influence product pricing, sourcing choices, and the logistics required to serve customers. They may also affect how companies evaluate potential suppliers and whether certain production steps remain commercially viable in the United States.
For executives, predictability can matter as much as the tariff level. A stable rule allows companies to include trade costs in budgets and long-term plans. Frequent changes make it harder to determine whether an investment will remain competitive over time.
The industry’s position, as reflected in Glas’s comments and the 2024 report, is not simply that imports should be restricted. Instead, manufacturers and supply-chain partners are seeking policies that encourage production in North America while avoiding unnecessary costs for domestic businesses.
Labor Shortages Add Another Layer of Risk
Labor is another serious constraint. A July 2024 Textile World analysis found that more than two-thirds of surveyed manufacturers identified attracting and retaining workers as their main challenge.
The problem is especially significant as textile production becomes more automated and technically demanding. Automation may change the nature of work, but it does not eliminate the need for skilled employees. Companies still require workers who can operate, maintain, and improve increasingly sophisticated production systems.
This creates a difficult situation for manufacturers. Businesses must compete for workers while also developing the technical capabilities needed to modernize. If they cannot fill positions, they may be unable to use available equipment at full capacity or take advantage of new investment.
Glas said some firms are operating at only 50 to 70 percent capacity. That level of utilization suggests production limits may come not only from demand or equipment, but also from worker availability and required skills.
A separate workforce assessment projected a steep decline in textile employment over the period it examined. That projection reinforces concern that the industry is losing both headcount and the capabilities needed for modernization.
The workforce issue therefore has two dimensions. The first is immediate: manufacturers need enough people to run current operations. The second is long-term: companies need a pipeline of employees who can support advanced production, technical textiles, nonwovens, and other areas of specialization.
Without that workforce foundation, investment in equipment and electronics may not deliver its full value. A factory can acquire more advanced systems, but it still needs qualified employees to integrate those systems into daily operations.
Companies Are Looking for New Markets
Rather than waiting for conditions to improve, many companies are attempting to reposition their businesses. Glas said some members are moving into nonwovens, technical textiles, and military-adjacent products that can also serve commercial customers.
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This strategy reflects an effort to reduce exposure to direct import competition. Companies that move into specialized products may be competing on technical capabilities, performance requirements, or customer relationships rather than only on price.
Nonwovens and technical textiles also represent a broader shift in how manufacturers think about the role of textile production. The sector is not limited to traditional fabric categories. Its capabilities can support a variety of commercial and industrial applications, although the supplied industry assessments do not specify the full range of products or markets involved.
Other companies are seeking growth in markets that are less exposed to direct competition from imported goods. This approach does not remove the effects of tariffs, weak demand, or labor shortages, but it may give businesses additional ways to manage those pressures.
Market diversification also affects sourcing and logistics. As companies pursue new customers, they may need to adjust production schedules, supplier relationships, inventory planning, and distribution arrangements. The ability to respond efficiently can become an important part of competitiveness.
The emphasis on new markets is consistent with developments outside the interview. Debrand’s new US textile-sorting plant in Ohio reflects how recycling, recovery and material innovation are becoming part of the sector’s long-term adjustment.
Textile sorting connects manufacturing with broader questions about materials and resource use. It also shows how companies may seek opportunities beyond conventional production by working with recovered materials and developing new approaches to textile management.
Recycling and Material Innovation Become More Important
The Ohio textile-sorting plant represents one example of how recycling and recovery are entering the industry’s strategic conversation. The development suggests that material innovation is becoming part of the sector’s response to changing market conditions.
For manufacturers, recovery and sorting relate to both sourcing and product development. The industry is examining not only how to produce textiles, but also how to manage materials within a broader system.
This does not eliminate the challenges facing traditional textile operations. Plant closures, layoffs, weak demand, and labor shortages remain significant concerns. However, recycling and recovery may offer another area where companies can build capabilities and pursue commercial opportunities.
Material innovation can also shape how businesses think about supply chains. Instead of relying exclusively on conventional inputs, companies may evaluate additional sources and processes. That can make sourcing decisions more complex, but it may also encourage new forms of collaboration across the textile sector.
The available information does not establish the full commercial impact of Debrand’s facility or identify specific products connected to it. In industry terms, its significance is that recycling, recovery, and material innovation are becoming part of the sector’s long-term adjustment.
Onshoring Proposals Focus on Incentives
Glas said policy uncertainty remains the largest obstacle to capital spending. Her comments indicate that manufacturers need clearer conditions before committing to major investments in plants, machinery and other production resources.
She also pointed to a joint onshoring proposal developed with brands and retailers. The proposal would reward purchases of U.S.-made goods through tariff credits.
The approach is notable because it focuses on incentives rather than relying only on penalties for imported goods. By rewarding purchases of domestically made products, the proposal seeks to strengthen demand for U.S. production and encourage companies to consider domestic sourcing.
The broader message, echoed in Textile World’s 2024 industry report, is that manufacturers and their supply chains are increasingly advocating rules that encourage production in North America. The objective is not simply to penalize imports, but to create conditions that support investment, employment, and more resilient supply networks.
For the industry, the policy question is closely tied to business strategy. Manufacturers need to know whether dependable demand, manageable input costs, and a workforce with the necessary skills can support domestic production. They also need enough certainty to plan logistics, machinery purchases, and supplier relationships.
The Industry’s Next Phase
The U.S. textile industry is responding to a combination of pressures that affect nearly every part of the business. Trade policy influences sourcing and costs. Weak demand affects production planning. Labor shortages constrain capacity. Global competition pressures prices. At the same time, companies are exploring technical textiles, nonwovens, commercial markets, recycling, and material innovation.
The loss of 43 U.S. textile operations over the past two years demonstrates the stakes. The industry’s future will depend in part on whether manufacturers can secure predictable policy conditions, maintain access to skilled workers, and find markets that reward domestic capabilities.
The current debate also shows that competitiveness cannot be separated from the broader supply chain. Textile production depends on machinery, materials, labor, logistics, and customers. Any policy that affects one part of that network may influence the others.
Key Takeaways
• The U.S. textile industry is facing simultaneous pressure from tariffs, weak demand, labor shortages, and global competition.• Kimberly Glas said 43 U.S. textile operations have been lost over the past two years.• More than two-thirds of manufacturers surveyed in a July 2024 analysis cited worker recruitment and retention as their main challenge.• Some companies are pursuing nonwovens, technical textiles, and military-adjacent products with commercial applications.• Recycling, recovery, and material innovation are becoming part of the industry’s long-term adjustment.• Industry representatives are seeking predictable policies and incentives that encourage production in the United States and North America.