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March 09, 2006

Textiles versus apparel

While we often talk of textiles and apparel as if they were one industry, Dr. Mike Walden explains why the distinctions between the two are significant. Listen


"Textiles takes raw fiber and non-fiber material and forms them into things like cloth and other fabrics. Apparel then takes that cloth and fabric and specifically manufactures it into clothing. So they're really two ends of the whole process," explains Walden, a professor with N.C. State University's Department of Agricultural and Resource Economics and a specialist with the North Carolina Cooperative Extension Service.

"Now the distinction is important because the apparel industry is much more labor-intensive. Therefore it is much more apt to take advantage of lower-cost labor in foreign countries.

"In comparison, the textile industry is more capital-intensive, more machinery-intensive. So it is more suited for the U.S.

"And, indeed, if you look at the trade deficit, it has exploded for apparel, but it has barely budged over the last few years for textiles."

Posted by deeshore at March 9, 2006 08:00 AM

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