Textile Industry Slows as Demand Declines

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Researched by Industrial Info Resources (Sugar Land, Texas)--The textile industry seems to have taken a turn for the worse as a result of the slower economy. Given a challenging operating environment, uncertainty about demand growth, and volatility in raw material supplies, growth in the sector is slowing.

In 2011, demand for cotton weakened, primarily because of surplus inventories, which caused mills to postpone further buying. Instead of adding capacity at existing locations, textile manufacturers have been setting up facilities in other countries to benefit from lower cost of production, leaving U.S. textile industries struggling to stay afloat.

Industrial Info is currently tracking 20 U.S. textile industry projects totaling $162 million. One such project is the $75 million expansion that is being planned for Bridgestone Metalpha Incorporated in Clarksville, Tennessee. Bridgestone will expand the existing 800,000-square-foot building by adding another 123,077 square feet with the equipment necessary to increase production capacity by 10% and enable the company to begin production of steel cords for off-road tires. A design firm is expected to be selected this month. A general contractor will be selected in the fall, and construction will begin shortly thereafter.

In North Carolina, Brazil-based Companiha Providencia is under way with a $60 million expansion of its plant in Statesville, North Carolina. The company is expanding its 90,000-square-foot building and installing a new spunbond line that will increase the plant's production capacity from 20,000 tons to 40,000 tons per year. Construction started in late summer 2011, and overall completion is expected by late summer or early fall of this year.

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