Fabricated Textile Products, NEC

SIC 2399

Industry report:

This category covers establishments primarily engaged in manufacturing fabricated textile products, not elsewhere classified.

Companies in this category manufacture miscellaneous textile products such as cloth diapers, fishing nets, aprons, horse blankets, hammocks, pennants, and non-leather straps. According to Dun and Bradstreet's 2009 Industry Reports, sales of fabricated textile products (not elsewhere classified) reached $1.8 billion in 2008. About 1,883 establishments employed 19,819 workers in this category. A majority of companies were small, employing fewer than 100 people. Top states in terms of numbers of workers employed included California, Texas, Kentucky, and Ohio. Michigan had the highest percentage of the nation's sales with $531.1 million, followed by Texas with $299.5 million and California with $178.2 million.

Takata Inc., with U.S. headquarters in Westover Hills, Texas, manufactured 20 percent of automobile seat belts used in vehicles made in the United States. Takata had 29,000 employees and annual sales of more than $4 billion in the mid-2000s. The firm expanded into Korea, India, Germany, Malaysia, and China in the early 2000s. TechnoTrim Inc., a subsidiary of Livonia, Michigan-based Johnson Controls Inc., was another industry leader, with estimated annual sales of $72 million.

In 1994, the United States, Mexico, and Canada implemented the North American Free Trade Agreement (NAFTA), a pact that gradually removed all tariffs and other trade restrictions from most goods made and sold in North America. As a result, U.S. textile exports to Mexico jumped from $1.1 billion to more than $3.0 billion between 1995 and 2002. However, between 1997 and 2002, cotton textiles and apparel imports from China, which reached $9.8 billion in 2002, had increased 17 percent. Imports continued to increase throughout the early 2000s, particularly as the Uruguay Round agreement, which was passed in the late 1990s by the World Trade Organization, mandated the elimination of textile quotas by 2005. Imports of miscellaneous textile products from China alone totaled $858 million in 2005, up from $719 million in 2004. When the trade agreement ended in 2008, the National Committee of Textile Organizations and other industry organizations lobbied Congress for a new import-monitoring program on Chinese products. However, imports from foreign manufacturers, particularly China, continued to represent a major challenge to all American textile companies in the late 2000s.

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