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Edward Devlin / NYSE/NASDAQ/AMEX	09/02/2013	www.gigawealth.net

Name: Textiles

Description: US Textile Industry

Author: Edward Devlin


Industry Analysis

1. Importance	Important		Overview The U.S. textile industry, its domestic suppliers and customers are comprised of the following: the textile industry; suppliers in the cotton, wool, and man-made fiber sectors; the U.S. textile machinery and textile chemical industries; and our customers in the U.S. apparel industry. The U.S. textile industry, suppliers and our customers are an important component of the U.S. economy and are found in every region of the country. The industry provides much needed jobs in rural areas and has functioned as a springboard for workers out of poverty into good paying jobs for generations. The industry is also a key contributor to our national defense and supplies over 8,000 products a year to our men and women in uniform. Over the past 30 years, the industry has become a major factor in hi-tech innovation. Textile products are now major components in everything from heart valves and stents to aircraft bodies and advanced body armor. In fact, in 2010 the textile sector alone contributed $26.3 billion to the U.S. Gross Domestic Product. The U.S. textile industry consumed nearly 1.7 billion pounds of U.S. grown cotton in 2011. Investment The U.S. textile industry invested $16.5 billion from 2001-2010. This has allowed the U.S. industry to increase productivity gains that have surpassed all other sectors. Investment has been crucial for the global competitiveness of the U.S. industry. The U.S. textile industry is export intensive, and is the third largest textile exporter in the world. Exports The U.S. textile industry is the third largest textile exporter in the world. The industry primarily exports yarns and fabrics. Textile exports in 2011 totaled over $17 billion dollars. The industry exports to more than 50 countries, including 16 with export markets that purchase in excess of $100 million. Source: http://www.ncto.org/ustextiles/index.asp National Council of Textile Organizations
2. Wisdom	Important		As capital goes, so goes textiles. Low capital rates, and low energy costs, lead to a competitive textile industry in the US.
3. Knowledge	Important		U.S. Textile Industry -- The Third Largest Exporter of Textile Products in the World According to WTO statistics, the United States textile industry is the third largest exporter of textile products in the world with over $13 billion in exports in 2009. Most of these exports (75%) go to countries in the Western Hemisphere that the United States has free trade or preferential trade agreements. The industry has also built up export markets in some surprising places, including China, which now purchases half a billion dollars a year in U.S. textile products. All told, the U.S. textile industry has export markets in excess of $100 million in over 20 countries. Source: http://www.ncto.org/tradejobs/ National Council of Textile Organizations
4. Current Assessment	Awesome		The US Textile industry is enjoying a period of renewed growth, courtesy of low interest rates for investment in modernized plant and equipment, and decreasing energy costs. Revenues are steadily increasing. Costs are going down, due to lower cost of capital and lower energy costs. Profit margins and profits are increasing.
5. Future Assessment	Good		The US Textile industry will continue to benefit from low interest rates and decreasing energy costs for the forseeable future.
6. Risk	Medium		The risk to the Textile industry has a number of sources: Interest rates - US interest rates are expected to increase as the US economy recovers. Higher interest rates hurt the US Textile industry by making the cost of capital more expensive Energy costs - always volatile, set by the market, subject to market gyrations and dynamics Foreign exchange rates - the strength of the dollar vs other currencies always impacts textile trade


Future Assessment Probabilities, Reasons and Explanations

Possible Outcome	Probability	Value	Reasons and Explanations

Awesome

> 10%

30%

Interest rates remain low, and energy costs continue to decrease, and dollar is weak.

Good

> 5%

50%

Interest rates remain low, and energy costs continue to decrease.

Fair

> 1%

20%

Bad

< 1%

Terrible

< 0%

Key Performance Indicators

Key Performance Indicator	Importance	Current Assessment	Future Assessment	Risk
1. Cumulative Annual Growth Rate (CAGR)	Very important	Awesome	Awesome	Very Low
2. Cumulative Annual Profit Growth Rate (CAPGR)	Very important	Awesome	Awesome	Very Low
3. Internal Competition	Very important	Good	Good	Very Low
4. Market Capitalization Growth Rate	Very important	Good	Good	Low
5. New Entrants	Very important	Good	Good	Low
6. Substitute Products or Services	Very important	Awesome	Awesome	Very Low
7. Supplier's Power	Very important	Good	Good	Low
8. Bankruptcies	Important	Good	Good	Low
9. Barriers to Entry	Important	Good	Good	Very Low
10. Buyer's Power	Important	Good	Good	Low
11. Government Regulated Industry
12. Legal/Regulatory/Compliance Impact
13. Man Made Disaster Impact
14. Natural Disaster Impact

Linked Entities

Companies	Importance	Current Assessment	Future Assessment	Risk
Crown Crafts, Inc.	Important	Awesome	Awesome	Low
Albany International Corporation	Important	Good	Good	Low
Culp, Inc.	Important	Awesome	Awesome	Low
Unifi, Inc.	Important	Awesome	Awesome	Low
Xerium Technologies, Inc.	Important	Good	Good	Low
Hallwood Group Incorporated	Important	Good	Good	Low

Associated Information

Hyperlinks to relevant information

National Council of Textile Organizations

US Textile History

US Textile News Headlines

International Wholesale Textile Sourcing Directory



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