How Big Is the American Textile Industry

The story of the American textile industry is one of profound transformation, moving from the dusty spinning mills of the Industrial Revolution to the high-tech, automated laboratories of the 21st century.  For decades, a common narrative suggested that textile manufacturing had permanently left American shores in favor of cheaper overseas labor. However, the data from 2024 and 2025 paints a starkly different picture. Today, the U.S. textile sector is not just surviving; it is a multi-billion-dollar powerhouse that has rebranded itself as a leader in innovation, sustainability, and technical precision.

To understand the sheer scale of this industry, one must look beyond the labels on our clothing. While it is true that much of the world’s fast fashion is produced in Asia, the "backbone" of the industry—the yarns, the high-performance fabrics, and the specialized materials used in everything from heart valves to fighter jets—remains deeply rooted in American soil.

A Macroeconomic Perspective: Valuation and Growth

As we look at the financial landscape of 2024, the U.S. textile industry represents a massive segment of the domestic manufacturing base. Depending on the specific metrics used by economists—whether one includes raw fiber production, specialized technical textiles, or finished apparel—the market valuation currently sits between $180 billion and $260 billion.

This variation in valuation stems from the industry’s diverse nature. The traditional textile and apparel market, which focuses on yarns, fabrics, and basic clothing, was valued at approximately $188.5 billion in 2024. However, when we expand the scope to include "comprehensive textiles"—a category that encompasses medical-grade materials, automotive interiors, and aerospace composites—the figure jumps significantly to $263.6 billion.

What is perhaps more impressive than the current valuation is the industry’s trajectory. Far from being a "sunset industry," U.S. textiles are projected to experience a compound annual growth rate (CAGR) of roughly 4% over the next decade. By 2034, experts anticipate the market could reach nearly $283.15 billion. This growth is fueled not by a return to old-fashioned sewing circles, but by a pivot toward high-margin, technology-driven manufacturing.

Market Breakdown at a Glance

To visualize the distribution of this economic power, the following table outlines the key segments contributing to the industry's size as of 2024-2025:

The Workforce: Supporting the American Dream

The "bigness" of an industry is often measured by its ability to provide livelihoods. In 2024, the U.S. textile sector remains a vital employer, particularly in the Southeast and Northeast regions. Currently, the industry provides direct employment to approximately 270,000 workers.

However, the nature of these jobs has changed. The "mill worker" of today is more likely to be a software engineer or a robotics technician than a manual laborer. As factories have become more automated to compete with global prices, the productivity per worker has skyrocketed. But the industry’s influence extends far beyond the factory floor. When considering the entire supply chain—including cotton farming, wool production, machinery manufacturing, and distribution—the textile network supports over 470,000 jobs across the United States.

This employment footprint is significant because it often sustains entire rural communities. In states like North Carolina, South Carolina, and Georgia, the textile industry is not just a line item in a budget; it is a cultural and economic pillar that has adapted to the digital age.

The Pivot to Technical Textiles

If you want to know why the U.S. textile industry is still growing, you have to look at "Technical Textiles." This is the invisible giant of the industry. Unlike traditional fabrics used for aesthetics or comfort, technical textiles are engineered for their functional properties.

Today, the U.S. is a global leader in this niche. American-made textiles are currently being used in:

• Aerospace: Carbon fiber composites that make airplanes lighter and more fuel-efficient.

• Medicine: Antimicrobial fabrics and "scaffolding" used in tissue engineering and advanced wound care.

• Automotive: Airbags, tire cords, and interior acoustic insulation.

• Defense: Advanced body armor and uniforms that can hide soldiers from infrared sensors.

This shift toward high-value products is the primary reason the U.S. has maintained its competitive edge. While a standard cotton T-shirt can be made anywhere, a multi-layered, fire-resistant flight suit requires the precision and quality control that American manufacturing excels at.

Policy and the Regionalization of Supply Chains

The size and stability of the U.S. textile industry are also heavily influenced by trade policy and environmental regulations. The United States-Mexico-Canada Agreement (USMCA) has been a game-changer for the industry. Through "yarn-forward" rules, the agreement ensures that for apparel to be traded duty-free within North America, the primary components (starting with the yarn) must be produced within the region. This creates a "captive market" that keeps U.S. spinning mills humming.

Furthermore, we are seeing a trend toward "near-shoring." In 2024 and 2025, many brands have realized the risks of long, fragile trans-Pacific supply chains. By moving production closer to home, companies can reduce shipping times and carbon footprints.

On the environmental front, the industry is navigating a period of "Green Reshaping." California’s recent ban on PFAS (per- and polyfluoroalkyl substances) in textiles has sent ripples through the national market. American manufacturers are currently leading the charge in developing "forever-chemical-free" water repellents and sustainable fibers. The rise of recycled polyester and bio-based fibers (made from corn or wood pulp) is not just a PR move; it is a multi-billion-dollar investment in the future of the planet.

Conclusion: A Resilient Titan

When we ask, "How big is the American textile industry?" the answer is measured in more than just dollars or headcount. Its size is reflected in its resilience. It is an industry that survived the onslaught of globalization by out-thinking and out-innovating its competitors.

With a market size approaching $264 billion and a workforce of nearly half a million people (directly and indirectly), the U.S. textile industry is a cornerstone of the national economy. It is an industry that has successfully transitioned from a labor-intensive past to a capital-intensive, high-tech future. As we look toward 2034, the trend is clear: the American textile industry will continue to grow, driven by the twin engines of technical innovation and sustainable practice.