Addressing a delegation of industry leaders, policymakers, and stakeholders at the Mayflower Hotel in Washington, D.C., National Council of Textile Organizations (NCTO) Chairman Chuck Hall delivered the 2026 State of the Industry overview on April 16. The address, a cornerstone of the NCTO’s 22nd Annual Meeting, served as both a retrospective of the previous year’s legislative victories and a rigorous call to action regarding the systemic challenges currently facing the United States textile sector. Mr. Hall, who also serves as the President and CEO of Barnet—a premier technical textile manufacturer based in Spartanburg, South Carolina—provided a comprehensive analysis of the industry’s $65 billion contribution to the American economy and its indispensable role in national security.
The three-day summit, which took place from April 14 to April 16, 2026, arrived at a critical juncture for domestic manufacturers. As global supply chains continue to realign in the wake of geopolitical shifts and evolving trade policies, Hall’s remarks underscored the urgent necessity of a robust domestic manufacturing base. The presentation was supported by a detailed data infographic released by the NCTO, which mapped the current economic trajectory of the industry, highlighting the sector’s resilience despite facing what Hall described as "unprecedented headwinds" from unfair global trade practices and regulatory loopholes.
Chronology of the 22nd Annual Meeting
The NCTO’s 22nd Annual Meeting was structured to facilitate direct engagement between textile executives and federal lawmakers. The event commenced on April 14 with a series of closed-door committee meetings focusing on trade policy, government procurement, and environmental sustainability standards. By the second day, the focus shifted to legislative advocacy, with members visiting Capitol Hill to brief congressional representatives on the industry’s 2026 policy platform.
The climax of the event occurred on the morning of April 16, when Chairman Chuck Hall took the podium to deliver the State of the Industry address. His speech was divided into three primary pillars: a review of the 2025 fiscal and policy landscape, the strategic defense implications of the textile supply chain, and the specific legislative priorities the NCTO intends to pursue through the remainder of 2026. Following the address, the organization released a formal policy roadmap designed to stabilize the domestic market and incentivize capital investment in high-tech textile production.
Economic Status and Supporting Data
To provide a factual foundation for the chairman’s remarks, the NCTO provided an updated economic snapshot of the industry. As of the first quarter of 2026, the U.S. textile supply chain—stretching from fiber production to finished apparel and industrial fabrics—remains a vital component of the nation’s industrial fabric. According to the NCTO’s data, the industry employs more than 500,000 workers across the country, with a significant concentration of these jobs located in rural communities in the Southeast and Northeast.
In 2025, U.S. exports of textiles and apparel reached approximately $24.8 billion, a testament to the global demand for high-quality, American-made fibers and yarns. However, Hall noted that these figures are under threat. The "State of the Industry" infographic highlighted a concerning trend: an influx of low-value, duty-free shipments entering the U.S. market via the de minimis loophole. This provision allows packages valued under $800 to enter the country without the scrutiny, duties, or taxes faced by domestic manufacturers, a phenomenon that Hall identified as a primary catalyst for recent domestic plant closures.
Furthermore, the data showed that the U.S. is the world’s third-largest exporter of textile products. The industry’s capital expenditures have also remained steady, with billions of dollars invested over the last decade in specialized equipment for non-wovens, medical textiles, and protective gear. Hall emphasized that this investment is at risk if the federal government does not take decisive action to level the playing field against state-subsidized competitors in Asia.
The Strategic Importance of the U.S. Textile Supply Chain
A significant portion of the chairman’s address was dedicated to the intersection of manufacturing and national security. Hall argued that the U.S. textile industry is not merely a commercial sector but a "fourth arm of the Department of Defense." Under the Berry Amendment, the U.S. military is required to source 100% of its textile needs from domestic producers, ranging from basic uniforms and cold-weather gear to sophisticated body armor, parachutes, and stealth materials for aircraft.
"The ability to clothe and protect our warfighters is a strategic necessity that cannot be outsourced to adversarial nations," Hall stated in his prepared remarks. He pointed out that the domestic industry’s capacity to pivot during national emergencies—citing the rapid production of Personal Protective Equipment (PPE) during previous health crises—demonstrates the critical need for maintaining "warm" production lines. The 2026 priorities include strengthening the Berry Amendment and ensuring that other government agencies, such as the Department of Homeland Security and the Department of Health and Human Services, adhere to similar "Buy American" mandates.
2026 Policy Priorities and Legislative Advocacy
The NCTO’s roadmap for 2026 is centered on three aggressive policy shifts intended to protect domestic market share and promote regional trade alliances.
1. Closing the De Minimis Loophole
The foremost priority identified by Hall is the immediate reform or elimination of the Section 321 de minimis exemption. The NCTO contends that this loophole is being exploited by e-commerce giants to flood the U.S. market with products often made with forced labor or in violation of safety standards. Hall called for legislative action to disqualify textile and apparel products from de minimis treatment, forcing all imports to undergo the same rigorous customs inspections as commercial shipments.
2. Enforcement of the Uyghur Forced Labor Prevention Act (UFLPA)
Building on the momentum of previous years, the NCTO is pushing for more stringent enforcement of the UFLPA. The organization is advocating for increased funding for Customs and Border Protection (CBP) to deploy advanced isotopic testing to identify cotton and synthetic fibers sourced from regions utilizing forced labor. Hall emphasized that ethical manufacturing is a competitive advantage for U.S. companies, but only if the law is enforced uniformly across all entry points.
3. Strengthening the CAFTA-DR Supply Chain
The NCTO remains a staunch supporter of the "yarn-forward" rule of origin within the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). This rule ensures that apparel must be made of yarn and fabric from the U.S. or the CAFTA-DR region to qualify for duty-free access. Hall argued that strengthening this co-production chain is essential for "nearshoring" production away from Asia, thereby reducing carbon footprints and increasing supply chain transparency.
Official Reactions and Industry Implications
The reactions to Hall’s address from within the textile community were immediate and supportive. Kim Glas, President and CEO of the NCTO, echoed Hall’s sentiments, noting that the industry is currently in a "fight for its life" against predatory trade practices. Industry analysts suggest that Hall’s speech serves as a formal ultimatum to Washington, signaling that without structural changes to trade enforcement, the U.S. risks losing its remaining textile manufacturing capacity.
Market observers have noted that Hall’s leadership as the head of Barnet brings a unique perspective to the chairmanship. Barnet’s focus on technical textiles—high-performance fibers used in automotive, industrial, and environmental applications—highlights the high-tech nature of the modern industry. This shifts the public perception of textiles from "old-world" garment making to a sophisticated, chemistry-driven manufacturing sector.
The implications of the 2026 State of the Industry address extend beyond the textile sector. If the NCTO is successful in its push for de minimis reform, it could set a precedent for other manufacturing industries—such as electronics and toys—that are currently struggling with the same influx of direct-to-consumer imports. Furthermore, the emphasis on the Berry Amendment signals a broader trend toward economic nationalism and the "friendshoring" of critical supply chains.
Conclusion and Future Outlook
As the 22nd Annual Meeting concluded, the message from Chairman Chuck Hall was clear: the U.S. textile industry is resilient and technologically advanced, but it requires a policy environment that values domestic production over cheap, unvetted imports. The 2026 policy priorities represent a comprehensive strategy to safeguard American jobs and ensure that the nation retains the ability to produce essential goods on its own soil.
The NCTO’s efforts in the coming months will likely focus on the "De Minimis Reform Act" and other bipartisan efforts in Congress. With the 2026 mid-term elections approaching, the organization is positioning the textile industry as a key barometer for the success of "Made in America" initiatives. For manufacturers like Barnet and the hundreds of other firms represented by the NCTO, the stakes have never been higher. As Hall concluded his address, he reminded the delegation that the "State of the Industry" is not just a reflection of the present, but a blueprint for a secure and sovereign industrial future.
