GENEVA — U.S. yarn production grew by 4.4 percent in the first quarter of 2015 compared to the previous quarter, reflecting the upward trend in the U.S. textile mill sector.
The increase in the U.S. bucked the 15 percent drop in global yarn production, due to double-digit contractions posted in Europe and Asia, an industry survey said.
In emerging economies in Asia, yarn production fell by 16 percent quarter-on-quarter, and in Europe witnessed a 10 percent contraction, the International Textile Manufacturers Federation, an umbrella forum for the world’s textile industries, said in a State of Trade report for the first quarter.
Analysts at the Zurich-based ITMF expect the positive trend to continue for U.S. yarn production.
The recovery of the U.S. economy, marked by increased private consumption, is one of the factors driving yarn production in the U.S., Brian Mandt, ITMF senior economist and author of the survey, told WWD.
Reshoring of certain textile industries to the U.S. is also playing a part in the recovery of the textile industry in the U.S., he said.
According to Mandt, some of the reshoring is to supplement offshore production to meet demand for “quick turnaround items for fashion.”
Moreover, in another new study, “Recovery of the U.S. Textile Industry,” Mandt lists a range of positive in the sector, where production has been trending upward. These include:
• In May, employment in U.S. textile mills rose to 119,400, the highest level since September 2011.
• In May, capacity utilization rates for mills reached 82.3 percent.
• The number of plants in the sector increased to 2,915, up from 2,910 in 2013.
• In the first quarter, income after tax in the textile mills and textile product mills sector increased by 43 percent year-on-year, the eleventh increase in a row.
• The number of spinning machines shipped to the U.S. has increased significantly the last few years. In 2014, short-staple spindles shipped totaled 26,832, up from 13,056 the year before, and shipments of open-end rotors surged to 60,632 units, sharply up from 11,196 shipped in 2013.
In 2014, American textile exports also remained strong, he said, reaching a volume of 1,354 thousand tons, the highest since 2011 — of which 53 percent contained cotton (with yarn and threads accounting for a 75 percent share), less than 43 percent synthetic fibers, and 4 percent wool, linen and silk, the study found.
The report also argues that America’s cotton yarn sector “is very competitive internationally” and attributes this partly to competitive electricity rates, and the availability of cheap raw material, with U.S. cotton costs lower than those in other cotton-producing nations.
Concerning energy costs, the report shows that in 2014 the cost of power per kilogram of yarn was 16 cents, or equivalent to 5 percent of American yarn costs, while in China it stood at 42 cents (9 percent of total yarn costs) and in India, at 29 cents (8 percent).