2026 State of the textile industry report

Last year, we were wondering how tariffs would affect the U.S. economy and the domestic portion of the global textile industry, as the rates seemed to change daily at the time the Advanced Textiles Association (ATA) annual industry survey was being conducted in the spring. Inflation thus wound up being No. 1 on people’s lists of top concerns—as it was the year prior—and tariffs being an inflation driver had people worried.

Throughout 2025 and in comments left on the survey this spring, company leaders expressed how the overall uncertainty was bad for business because no one can put plans in place, forecast demand or even know how much their supplies are going to cost, eroding businesses’ confidence.

An anonymous comment left this year sums it up this way: “While the unknown is generating some business, taking some away, it [is] making for very long working hours and a huge need for flexibility.”

While the survey was open this year in mid-February to early March, the decision came down from the Supreme Court that many of the tariffs imposed in 2025 by U.S. President Donald Trump under the International Emergency Powers Act were unlawful. The Court of International Trade then ruled that the duties would need to be refunded by Customs and Border Protection. 

Just before the survey closed, the war in Iran began, with oil and gas prices spiking and the potential for shipping challenges (and higher prices) for importers. The inflation rate had fallen back to the level of the previous spring during this year’s survey, but with the price of oil typically affecting inflation, the consumer price index responded higher right away in March.

Higher oil prices don’t just affect the cost of transportation. Price spikes were likewise hitting petrochemical inputs such as polypropylene, polyethylene and engineering resins, and costs were expected to continue to rise. Supplies could be disrupted throughout 2026. 

Opening our annual questionnaire a week or two later might have kept inflation at the top of the concerns list, since many respondents filled it out before the Middle Eastern conflict began. 

Amid all the turbulence, one refrain was clear among those we contacted individually for additional input: Resiliency is at the heart of the specialty textiles industry.

“Our industry is influenced by a wide range of global dynamics—trade policy, regulatory developments, logistics capacity, energy prices and broader economic sentiment,” said Marc Shellshear, second vice chairman of the ATA Board of Directors and president of Value Vinyls, in Grand Prairie, Texas. “2025 reinforced how interconnected the global supply chain has become. Changes in one region can ripple across markets very quickly. Looking ahead to 2026, I expect the environment will remain dynamic.”

Adaptability, diversity in markets, good customer and supplier relationships, and planning for the future are keys to success, respondents said—which could apply in any year.

Respondents report on the textile industry in 2025

For the annual survey, ATA solicits opinions from the readers of all our publications and newsletters as well as social media followers; it’s not limited to members of the association. Here’s the breakdown of who they were this year.

About 70% of the companies giving their input this year have fewer than 50 employees, with almost 25% being run by one to four people. End product fabricators made up 38% of survey takers, and suppliers and distributors were 25%. Forty percent of the respondents sell awnings/shade products, 35% covers, 27% coated/laminated/composite fabrics, 26% each woven fabrics and marine products, 25% each services and bags, 23% structures/enclosures, and 22% each protective textiles and tents.

Top markets included government/military (55%), manufacturing (51%), consumer products/home furnishings (47%), and sports/recreational and marine (both at 45%).

Company sizes ranged from less than half a million in revenues (21%) in 2025 to more than $10 million (22%). Firms were predominantly U.S.-focused, with very few of this year’s respondents selling internationally.

Businesses compared their revenues between 2024 and 2025. Just over a quarter reported revenues down. A little under a quarter of respondents reported 2025 revenues up more than 10%; an additional 27% agreed they were up, just less than that.

Some companies faced a hitch in their revenues due to government contracts being slow to come through, they said, but for AR Tech in Fontana, Calif., that also means that 2026 will show growth as the orders will now keep its employees busy.

“A large customer base for our company is the aerospace industry, and we have been working on development projects for major aerospace companies that we had expected to be implemented in 2025,” explains Bud Weisbart, company vice president and co-owner. “We did not receive contracts for them until the last two months of the year. As these are contracts that require significant time to produce, shipments did not occur until the beginning of 2026.”

2025 was a bit of a roller-coaster for First Response Custom Sewing Inc. in Frederick, Md., a business that makes bags for first responders and on government contracts. Sales were up at the start of 2025 but slowed dramatically near the end of the year.

“I am assuming that tariffs could have been the cause for our customers, and companies in general were just trying to keep their inventories low,” said Joe Bleach, president and CEO. “We were fortunate to have a large backlog of orders to keep everyone busy throughout the end of 2025.”

The tumult didn’t extend to a tent and rental company and some marine fabricators, however.

Steven Eisenstein, CEO of Classic Tents & Events of Norcross, Ga., reported that 2025 turned out well regardless of tariffs affecting pricing and wait time for products. “Our regular clients are still actively having new events,” he said. He highlighted some large projects, including the funeral for former U.S. President Jimmy Carter. Expectations are high for 2026 too. He noted that this year Classic Tents will be working with other tent companies in 43 states, and he is excited about the FIFA World Cup taking place in the U.S. this summer and the company’s new garden tent.

David Huntington, co-owner of River Custom Canvas LLC in Clayton, N.Y., said, “The marine canvas industry has been very consistent for us since we opened 11 years ago. Despite struggles with supply chain issues during COVID, our customers have remained loyal, and work has been steady and increasing almost every year. This is largely due to increased efficiency and the fact that people are going to use their boats regardless of the circumstances. As a boat owner, I remember when marine fuel was $1.25 per gallon in our marina. Now it [is] almost $5, and regardless, we bought a bigger boat!”

Jeff Viehmeyer, owner of Alameda Canvas & Coverings in Alameda, Calif., said his business saw an increase over the previous year, with customers coming back for upgrades or repairs. That (and the weather being favorable) led to a year that was steadier than expected.

“My sense is that in our area, many boat owners in our market space are watching the economy, stock market and geopolitical news and deciding that reinvesting in their current boat is a good idea at this time,” he said. “Most have the funds to do it. … The hurt is/will be coming from the smaller boat/average owners who are facing increased fuel and maintenance costs at every turn and will find it difficult to maintain their boats with job uncertainty and rising prices.”

Perennial top concern: costs

Tariffs in 2025 affected companies differently, depending on how much of their products’ makeup came from domestically sourced materials or whether what they purchased was certified as following the rules of origin under the U.S.-Mexico-Canada Agreement and/or the Dominican Republic–Central America Free Trade Agreement. Following some industry lobbying, some certified products could traverse North American borders tariff-free. No matter what, though, cost increases hit just about everyone, since some critical raw material inputs are imported unilaterally.

“Last year, China announced export restrictions on antimony trioxide,” noted ATA chairman Craig Zola, vice president, marketing & distribution, at Herculite^®, Emigsville, Pa. “This is a primary flame-retardant additive used in PVC-based products throughout our industry. Last year, antimony shipments from China dropped 97%, and these shortages have driven antimony prices up 600%-plus. These non-tariff related issues largely remained under the radar of the mainstream media, but our industry certainly felt the impact.”

Only 8% of our survey takers reported their costs held steady. In contrast, that same amount of respondents found that costs increased more than 25%. Forty-six percent had their costs increase 10%–25%, and an additional 38% saw them go up less than 10%.

At least having some warning that price increases were coming from vendors was helpful, people said, so they could attempt to prepare.

Since the COVID-19 pandemic, Zola noted, “Price management has become a central focus and a top strategic priority for business owners across the ATA membership.”

In some years, increases have been dramatic, with cost increases of more than 10% hitting 70% of survey respondents during 2021 and 63% during 2022. Although the demographic mix of respondents’ companies is always a bit different, the numbers don’t seem off base.

One anonymous commenter this year expressed fatigue and frustration over so many years of cost increases by suppliers. “End manufacturers struggle for their own dollar and the new sale by the time we set pricing.”

In response to the cost increases they faced by suppliers, almost 85% of companies taking this year’s survey had to raise their prices. Other causes for price hikes included tariffs (54%) and increased labor costs (62%). Some people attributed it more to inflation/overall operating expenses and freight/shipping. 

Looking ahead

The 2026 revenue outlook for our survey respondents seemed optimistic, if that can be inferred from 73% projecting revenues up—36% of them said more than 10%.

“Our members remain both resilient and determined,” Zola said. “With oil prices on the move, we should continue to keep one eye on input costs and one foot on the innovation gas pedal.”

Classic Tents & Events’ Eisenstein said that one tactic his company has employed is changing the job description of one of its managers, “[turning] her job into a business development role. We went after clients instead of waiting for them to call us,” he said. 

Survey respondents reviewed a list of priorities and ranked them in importance over the next two years. At the top are product diversification, research and development, and enhancing their business’s ability to provide personalized products. Nearly half of companies aim to develop new product lines within existing capabilities and enter new markets, and more than a third will make an equipment purchase. Almost a quarter have a new facility in their sights.

Survey takers were neutral on supply chain and sustainability improvements. Low on the priority list are the need for capital/funding and implementing automation and artificial intelligence tools.

An anonymous comment addressed the latter topic, saying a concern of theirs is “convincing customers that automation, robotics and technology integration is the future of the industry.”

Very few plan to divest, exit markets or reduce product offerings. More plan to acquire a business (20%) than to sell one (12%).

There also is some optimism for the industry overall. “With products being brought back to our country, it should open new opportunities to expand business while providing a new lifeline to the textile industry,” Bleach said. (Review will have more on this topic in our July issue.) 

The announcement by the Department of the Interior shifting its purchases to American-made uniforms came while we were preparing this story, in fact. (Download our digital supplement on the military market to learn more about selling to the government. Find it at SpecialtyFabricsReview.com under “Resources.”)

Shellshear said, “We continue to see opportunities as manufacturers innovate, improve efficiency and explore new product applications. The companies that remain adaptable tend to find opportunities even in uncertain conditions.”

He added, “The companies that succeed will be those that combine strong operational discipline with long-term perspective. Markets will continue to evolve, but organizations that maintain strong relationships and stay focused on serving customers will continue to thrive.” 

Cathy Jones is the senior editor of Specialty Fabrics Review and she thanks everyone who took the time to fill out this year’s survey, especially those who left comments and those who were willing to be interviewed. She regrets that she couldn’t get in all of the comments and can be reached at cathy.jones@textiles.org.

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STATE OF THE INDUSTRY WEBINAR
Join us July 22 at 1 p.m. EDT for this year’s State of the Industry webinar.
A panel of industry experts will discuss the results of the survey and some of today’s top issues.
Register at textiles.org/events.