The United States textile industry has entered 2026 positioned at a critical crossroads, functioning simultaneously as a sector under significant economic duress and as a vital, high-tech pillar of the national manufacturing infrastructure. This dual identity was the central theme of the 2026 State of the U.S. Textile Industry address delivered by Chuck Hall, the President and CEO of Spartanburg, South Carolina-based Barnet and the immediate past chairman of the National Council of Textile Organizations (NCTO). Hall’s assessment provides a comprehensive overview of an industry grappling with contraction in shipment values and plant closures, while paradoxically remains a global leader in innovation, investment, and national security contributions. As the industry navigates the complexities of the mid-2020s, the report serves as both a warning of the consequences of predatory trade and a roadmap for domestic industrial revitalization.
Economic Performance and the Contraction of 2025
The economic data presented for the 2025 fiscal year highlights a period of cooling after the volatile recovery years following the early 2020s. According to the data aggregated by the NCTO and industry analysts, total shipments of man-made fibers, textiles, and apparel reached an estimated $60.9 billion in 2025. This represents a notable decline from the $63.9 billion recorded in 2024, signaling a tightening of demand and the impact of intensified global competition.
The export market, traditionally a stronghold for American textile manufacturers, also faced headwinds. U.S. textile-related exports dipped to $27 billion in 2025, down from $28 billion the previous year. Despite this slight regression, the United States maintained its status as the second-largest individual country exporter of textile-related products globally. This ranking underscores the efficiency and scale of the domestic industry, which continues to supply high-value yarns and fabrics to Western Hemisphere partners, particularly within the framework of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the United States-Mexico-Canada Agreement (USMCA).
The labor market remains a significant component of the industry’s identity. As of the start of 2026, the sector employs 453,122 workers. These jobs are frequently concentrated in rural areas, particularly in the Southeast, where a single textile mill often serves as the primary economic engine for an entire community. The loss of such facilities has profound socio-economic consequences that extend far beyond the balance sheets of the individual corporations.
A Chronology of Industry Challenges and Plant Closures
The narrative of the U.S. textile industry over the past 30 months has been defined by a stark reality: the closure of more than 40 domestic manufacturing plants. This trend accelerated in late 2024 and through 2025, driven by a "perfect storm" of external economic pressures. Hall’s address identified several primary catalysts for these closures, which have disproportionately affected rural manufacturing hubs.
The timeline of this stress began with the post-pandemic logistics shifts, where a surge in inventory was followed by a sharp "destocking" period by major retailers. By 2025, this was compounded by what industry leaders describe as predatory trade practices from overseas competitors. These practices include the exploitation of "De Minimis" customs loopholes, which allow low-value shipments to enter the U.S. duty-free and with minimal inspection, and illegal transshipments designed to circumvent established tariffs.
Furthermore, customs fraud and the circumvention of the Uyghur Forced Labor Prevention Act (UFLPA) have allowed cheaper, illicit goods to flood the market, undercuting domestic producers who adhere to strict labor and environmental regulations. The resulting "stress test" proved insurmountable for dozens of facilities, leading to a wave of consolidation and liquidations that has reshaped the industrial landscape of states like North Carolina, South Carolina, and Georgia.
The Strategic Link to National Defense and Security
One of the most compelling arguments for the preservation of the domestic textile base is its inextricable link to national security. The U.S. Department of Defense (DoD)—historically referred to in some legacy contexts as the Department of War—relies on a robust domestic supply chain to ensure mission readiness. Hall noted that the industry delivers more than $1.8 billion annually in uniforms and textile-based equipment to the armed forces.
The scale of this contribution is immense, encompassing more than 8,000 distinct textile products each year. These are not merely garments; they are highly engineered systems including:
- Advanced Ballistic Materials: High-strength fibers used in body armor and vehicle reinforcement that are critical for soldier protection.
- Flame-Resistant (FR) Fabrics: Specialized textiles for flight suits and combat uniforms designed to protect personnel from flash fires and thermal threats.
- Stealth and Camouflage Technologies: Infrared-reflective fabrics that help conceal troops and equipment from advanced sensor systems.
- Medical Textiles: Hemostatic bandages and specialized gauzes used in field hospitals.
The Berry Amendment remains the cornerstone of this relationship, requiring the DoD to give preference to domestically produced, grown, and manufactured products. Hall emphasized that efforts to safeguard and expand these requirements are ongoing, as any erosion of the domestic capacity to produce these items would create a dangerous dependency on foreign—and potentially adversarial—supply chains for critical defense components.
Investment Trends and Technological Evolution
Despite the closures and shipment declines, the industry has demonstrated a remarkable commitment to long-term viability through capital investment. Between 2017 and 2024, the U.S. textile industry invested a staggering $34.3 billion in advanced domestic manufacturing. In 2024 alone, $5.5 billion was funneled into new plants and equipment.
This investment is largely focused on automation, sustainability, and the development of technical textiles. Modern U.S. mills are among the most technologically advanced in the world, utilizing robotics and AI-driven quality control to maintain competitiveness despite higher labor costs compared to developing nations. The shift toward "Industry 4.0" in textiles has allowed American firms to dominate in high-margin sectors such as:
- Automotive Textiles: Airbags, tire cords, and interior fabrics.
- Industrial Applications: Filtration systems, geotextiles for infrastructure projects, and carbon fiber composites for aerospace.
- Healthcare: Antimicrobial fabrics and implantable textile structures.
These investments suggest that while the "commodity" apparel market remains under pressure, the "technical" textile market is where the future of the U.S. industry lies. The $5.5 billion invested in 2024 serves as a testament to the industry’s belief in its own resilience and its ability to pivot toward high-growth, high-complexity manufacturing.
Policy Gains and the Legislative Environment
The National Council of Textile Organizations has been aggressive in its engagement with both the executive branch and Congress to secure a "level playing field." Hall’s address highlighted several key policy gains that have provided a lifeline to the sector.
A primary victory has been the preservation of duty-free treatment for qualifying textile and apparel trade under existing free trade agreements. By maintaining the "yarn-forward" rule of origin—which requires that the yarn and fabric used in finished garments be produced within the trade bloc—policy makers have ensured that the benefits of trade stay within the Western Hemisphere, supporting both U.S. textile mills and garment assemblers in the Caribbean and Central America.
Additionally, there has been a renewed emphasis on "Made in America" procurement across all federal agencies, not just the Department of Defense. This broader application of domestic sourcing requirements is intended to use the government’s massive purchasing power to stabilize the domestic manufacturing base. Industry leaders continue to lobby for the closure of the De Minimis loophole, arguing that it is the single greatest threat to the integrity of U.S. customs enforcement and domestic retail competition.
Analysis of Implications and Future Outlook
The state of the industry in 2026 suggests a "K-shaped" trajectory. On one hand, companies that have failed to modernize or that remain tethered to low-complexity commodity products are facing an existential threat. The 40 plant closures are a somber reminder that the global market does not forgive inefficiency or a lack of strategic differentiation.
On the other hand, the $34.3 billion in cumulative investment indicates a sector that is lean, technologically sophisticated, and vital to the nation’s core interests. The challenge for the remainder of 2026 and into 2027 will be the translation of policy shifts into durable competitive advantages. For senior management, the directive is clear: survival depends on a combination of high-tech capital investment, active participation in trade policy advocacy, and a move toward high-value-added technical products.
The U.S. textile industry is no longer the labor-intensive "sunset industry" it was once characterized as in the late 20th century. It is a capital-intensive, high-speed, and strategically essential component of the American economy. As Chuck Hall concluded in his address, the strides made in policy and investment have provided the industry with an opportunity to prove its value. The coming years will determine if the industry can leverage its strategic relevance to overcome the predatory practices of the global market and secure its place as a leader in the next generation of advanced manufacturing.
In summary, while 2025 was a year of contraction and consolidation, 2026 stands as a year of potential stabilization. The $60.9 billion output and the 453,122 workers represent a formidable industrial force. If the industry can continue to align its domestic capacity with national security needs and technological innovation, it will remain an indispensable pillar of the American manufacturing landscape for decades to come.
