Threadbare: Fierce import competition has driven down revenue and forced industry exits

The Synthetic and Natural Textile Manufacturing industry consists of three primary segments: wool scouring, synthetic textile manufacturing and natural textile manufacturing. Industry operators have struggled with difficult trading conditions over the past five years, which have caused revenue to decline. Industry operators have been exposed to intense competition from overseas low-cost manufacturers, with imports accounting for a large proportion of domestic demand. Industry operators have also been vulnerable to exchange rate fluctuations, as the industry heavily relies on exports. Ongoing contractions in domestic downstream industries have further constrained revenue, as demand for industry products from textile product manufacturers has fallen...read more.

Industry Statistics & Market Size
Revenue
$479m
Annual Growth 14-19
-1.2%
Forecast Growth 19-24
x.x%lock
Profit
x.x%lock
Employment
1,154
Businesses
126
Market Share of Companies

Industry Threats & Opportunities

  • Australian textile producers have struggled to compete against low-cost offshore manufacturers
  • Synthetic and natural textile producers have increasingly targeted export markets to survive
  • Growth opportunities exist in synthetic fibre product innovation, such as new protective textiles

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    Industry Report - Industry SWOT Analysis Chapter

    The Synthetic and Natural Textile Manufacturing industry is in the decline stage of its life cycle. Industry value added (IVA), which is a measure of the industry’s contribution to the wider economy, is projected to contract at an annualised 3.5% over the 10 years through 2023-24. This represents an underperformance compared with the wider economy, with GDP forecast to increase at an annualised 2.7% over the same period. The industry’s poor performance is attributable to its inability to remain price competitive against international manufacturers, along with limited technological changes.Many industry players have gradually been forced to either close or shift production facilities offshore due to increasing competition from low-cost countries and high operating costs. Rem...purchase to read more.

    Additional Insights for the Synthetic and Natural Textile Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Synthetic and Natural Textile Manufacturing are:

  • Automation - reduces costs, particularly those associated with labour
  • Establishment of brand names
  • Establishment of export markets

    • IBISWorld analysts also discuss how external factors such as Demand from textile product manufacturing and Import duties on apparel manufacturing in the Synthetic and Natural Textile Manufacturing industry impact industry performance..

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    Industry Products

    What is the Synthetic and Natural Textile Manufacturing Industry?

    Industry operators are primarily engaged in wool scouring (including wool carbonising, carding or combing of wool in manufacturing unspun wool tops), spinning yarns or weaving fabrics wholly or predominantly made of natural fibres (such as cotton or wool), and spinning yarns or weaving fabrics wholly or predominantly made of synthetic fibres.

    Industry Products
  • Woven natural fibres
  • Wool scouring
  • Yarn of synthetic and natural fibres
  • Woven synthetic fibres
  • Synthetic textile commission production
    • Industry Activities
  • Wool scouring
  • Woven fabric using cotton, wool and synthetic fibre
  • Fibres (excluding glass fibres)
  • Synthetic and natural yarn
  • Continuous fibre filament
  • Tyre cord yarns or fabrics and synthetic fibre
  • Cotton and sewing threads
  • Tow (from flax, hemp or jute)
  • Labels and printed cloth
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Demand from textile product manufacturing
  • Import duties on apparel manufacturing
  • Trade-weighted index
  • Domestic price of wool
  • World price of cotton

    • Current Performance
  • International trade
  • Demand trends
  • Industry structure
  • Chart: Revenue Growth

    • Industry Outlook
  • Import competition
  • Industry participation
  • Growth opportunities
  • Table: Synthetic and Natural Textile Manufacturing Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Synthetic and Natural Textile Manufacturing Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Cut and Sewn Textile Product Manufacturing
  • Carpet and Textile Floor Covering Manufacturing
  • Men's and Boys' Wear Manufacturing
  • Women's and Girls' Wear Manufacturing
  • Textile Product Wholesaling
  • Knitted Product Manufacturing

    • Key Selling Industries
  • Cotton Ginning
  • Industrial and Agricultural Chemical Product Wholesaling
  • Wool Wholesaling

    • Products & Services
  • Wool scouring
  • Yarn of synthetic and natural fibres
  • Synthetic textile commission production
  • Woven synthetic fibres
  • Woven natural fibres
  • Chart: Synthetic and Natural Textile Manufacturing Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Wool scouring export markets
  • Domestic markets
  • Textile export markets
  • Chart: Major Market Segmentation for the Synthetic and Natural Textile Manufacturing Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Synthetic and Natural Textile Manufacturing

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Synthetic and Natural Textile Manufacturing Industry

    • Industry Globalization

    Major Companies

    Michell Wool Pty Limited, Australian Textile Group Pty Ltd,
  • Table: Michell Wool Pty Limited - financial performance
  • Table: Australian Textile Group Pty Ltd - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Synthetic and Natural Textile Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Synthetic and Natural Textile Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Fabric Assurance By Simple Testing (Fast)
  • A system that tests the bend, compression and dimensional stability of fabric.
    • Loom
  • An apparatus for making thread or yarn into cloth by weaving strands together at right angles.
    • Noils
  • Short strands and knots combed out of wool fibre before spinning.
    • Suint
  • A natural greasy substance found in sheep's wool.
    • Yarn
  • Yarn is a thread made by twisting fibres, such as cotton, wool or synthetic fibres.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Synthetic and Natural Textile Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Synthetic and Natural Textile Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Synthetic and Natural Textile Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Synthetic and Natural Textile Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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