NAICS 313110 Quarterly Industry Report
Fiber, Yarn, and Thread Mills
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 313110Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 313110 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the fiber, yarn, and thread manufacturing sector, drawing on data from the U.S. Census Bureau[5] and SBA lending records. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 313110 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the fiber, yarn, and thread mills industry.
Industry Definition & Overview
Fiber, Yarn, and Thread Mills (NAICS 313110) encompasses establishments primarily engaged in spinning yarn, manufacturing thread of any fiber, and texturizing, throwing, twisting, or winding purchased yarn or manmade fiber filaments. Products include cotton yarn, synthetic yarn, sewing thread, industrial thread, and specialty fibers used in apparel, home textiles, and industrial applications. According to the U.S. Census Bureau[5], this sector has experienced contraction in domestic establishment counts over several decades as global competition from lower-cost producers in Asia reshaped the supply chain, though remaining U.S. operators have invested in automation and specialty product niches.
Domestic yarn and thread manufacturers increasingly compete on speed-to-market, technical capabilities, and proximity to downstream customers rather than on commodity pricing. The SBA Office of Advocacy[6] notes that surviving small and mid-size mills often serve niche markets including high-performance synthetic yarns for military and aerospace applications, specialty cotton yarns for premium apparel brands, and technical threads for automotive and medical textile applications.
Regulatory requirements include OSHA[7] workplace safety standards for textile mill environments covering cotton dust exposure limits, machine guarding, and noise control. Environmental compliance under EPA[8] regulations addresses wastewater treatment from dyeing and finishing processes, air emissions from fiber processing, and waste management for fiber scrap materials. Trade policy including tariffs and import quotas materially affects competitive positioning for domestic producers.
What's Included in This Industry
- Valuation multiples benchmarked to fiber, yarn, and thread manufacturers
- Revenue and EBITDA trends for domestic spinning and texturizing operations
- SBA lending data and financing terms for NAICS 313110
- Comparable transaction data from recent textile mill M&A activity
- Industry risk factors including import competition and raw material pricing
- Workforce composition and labor cost benchmarks for textile mill operations
- Regional market concentration analysis across traditional textile-producing states
- Customer channel analysis covering apparel, industrial, and home textile buyers
- Growth projections tied to reshoring trends and technical textile demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Textile Mills | 313 |
| Industry Group | Fiber, Yarn, and Thread Mills | 3131 |
| NAICS Industry | Fiber, Yarn, and Thread Mills | 31311 |
| National Industry | Fiber, Yarn, and Thread Mills | 313110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 313210 | Broadwoven Fabric Mills | Broadwoven fabric mills purchasing yarn and thread as primary inputs, creating direct supply chain relationships with fiber and yarn producers |
| 313220 | Narrow Fabric Mills and Schiffli Machine Embroidery | Narrow fabric mills and embroidery operations consuming specialty yarns and threads for ribbon, webbing, and decorative textile production |
| 313230 | Nonwoven Fabric Mills | Nonwoven fabric mills using fiber inputs in alternative manufacturing processes that sometimes compete with traditional yarn-based textile products |
| 325220 | Artificial and Synthetic Fibers and Filaments Manufacturing | Artificial and synthetic fiber manufacturers supplying raw synthetic filaments that yarn mills texturize, twist, and process into finished yarn products |
| 313310 | Textile and Fabric Finishing Mills | Textile and fabric finishing mills processing yarn and fabric products through dyeing, printing, and chemical treatment operations downstream |
| 314110 | Carpet and Rug Mills | Carpet and rug mills consuming large volumes of yarn and fiber as primary manufacturing inputs for floor covering production |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | North Carolina | 27.2% | 65 |
| 2 | Georgia | 14.2% | 34 |
| 3 | South Carolina | 7.1% | 17 |
| 4 | Pennsylvania | 6.3% | 15 |
| 5 | California | 4.2% | 10 |
| 6 | New York | 4.2% | 10 |
| 7 | Tennessee | 4.2% | 10 |
| 8 | Vermont | 2.9% | 7 |
| 9 | Virginia | 2.9% | 7 |
| 10 | Maine | 2.5% | 6 |
% Of Establishments
0%
27%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$2.5M
Total Loan Volume
$105K
Average Loan Size
10 yrs
Average Loan Term
9.88%
Average Interest Rate
80
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Fiber, yarn, and thread mills seeking SBA financing typically qualify under the SBA size standards[10] for NAICS 313110, which set the threshold at 500 employees for small business classification. The SBA 7(a) loan program[11] provides up to $5 million for business acquisitions, spinning equipment upgrades, and working capital needs. Industry CDC/504 loan program[12] offers long-term fixed-rate financing for facility improvements and major textile machinery installations. Lenders evaluate raw material supplier relationships, customer contract stability, and equipment condition when underwriting textile mill transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Heritage Family FCU | 16 | $2.4M | $152K |
| 2 | Manufacturers and Traders Trust Company | 8 | $80K | $10K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a fiber, yarn, or thread mill?
Valuation multiples for NAICS 313110 businesses typically range from 3x to 6x EBITDA, with specialty yarn producers serving technical or military applications commanding the upper range. Commodity yarn producers facing direct import competition generally trade at lower multiples. Per U.S. Census Bureau[5] data, the sector's consolidation has concentrated value in mills with differentiated product capabilities.
What SBA loan options are available for acquiring a yarn or thread mill?
The SBA 7(a) loan program[11] provides up to $5 million for acquisitions and equipment purchases, while the CDC/504 program[12] finances facility upgrades and major machinery installations. Lenders assess equipment age and condition carefully because textile machinery replacement costs are substantial and directly affect production capacity.
What are the main revenue drivers for yarn and thread manufacturers?
Revenue depends on product mix between commodity and specialty yarns, customer diversification across apparel, industrial, and home textile markets, and the ability to maintain pricing in the face of import competition. Technical yarns for automotive, aerospace, and medical applications generate premium margins compared to standard apparel yarns.
What regulatory requirements affect NAICS 313110 businesses?
Textile mills must comply with OSHA[7] cotton dust standards, machine guarding requirements, and noise exposure limits specific to textile manufacturing environments. Per EPA[8] regulations, mills with dyeing or finishing operations must manage wastewater discharge permits, air emission controls, and fiber waste disposal in compliance with federal and state environmental standards.
How does import competition affect domestic yarn manufacturers?
Import competition from lower-cost producers in Asia, particularly China, India, and Vietnam, has driven decades of domestic industry consolidation. Surviving U.S. mills compete on delivery speed, product customization, quality consistency, and proximity to domestic customers. Per SBA[13] industry data, trade policy changes including tariff adjustments directly affect competitive positioning for domestic yarn and thread producers.
What equipment is needed for yarn and thread manufacturing?
Core equipment includes spinning frames, ring spinning systems, open-end spinning machines, texturizing equipment, winding machines, and quality testing instruments. Modern spinning lines can cost $2 million to $10 million depending on fiber type, throughput capacity, and automation level. Per Bureau of Labor Statistics[14] data, capital investment per worker in textile manufacturing exceeds many other manufacturing subsectors.
What workforce challenges do yarn and thread mills face?
Key challenges include recruiting machine operators for increasingly automated equipment, retaining maintenance technicians for specialized textile machinery, and managing shift schedules for 24-hour production operations. Per Bureau of Labor Statistics[14] data, textile manufacturing employment has declined over decades, creating a shrinking labor pool with relevant skills and experience.
What growth opportunities exist for domestic yarn manufacturers?
Growth opportunities include technical textiles for automotive and aerospace applications, performance yarns for athletic and outdoor apparel, sustainable and recycled fiber products, and reshoring initiatives by brands seeking shorter supply chains. The U.S. Census Bureau[5] has tracked modest increases in domestic textile output value driven by these higher-value product categories despite continued volume pressure from imports.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]OSHA osha.gov
- [8]EPA epa.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]SBA sba.gov
- [14]Bureau of Labor Statistics bls.gov
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