NAICS 313240 Quarterly Industry Report
Knit Fabric Mills
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 313240Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 313240 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the knit fabric manufacturing sector, drawing on data from the U.S. Census Bureau[4] and SBA lending records. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 313240 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Definition & Overview
Knit Fabric Mills (NAICS 313240) encompasses establishments primarily engaged in knitting weft (circular) and warp (flat) fabric, manufacturing lace, or dyeing and finishing lace and lace goods. These mills produce knit fabrics used in apparel, home furnishings, automotive, and industrial applications, distinguishing them from apparel knitting mills that produce finished garments. According to the U.S. Census Bureau[4], U.S. knit fabric production supports approximately $1 billion in trade activity, with domestic mills competing on technical capability and specialty fabric development.
The industry has consolidated as commodity knit fabric production moved offshore, leaving domestic mills focused on performance fabrics, technical knits, and specialty applications. Most SBA Office of Advocacy[5] notes that remaining small and mid-size knit fabric mills maintain viability by producing moisture-wicking athletic fabrics, flame-resistant industrial knits, medical compression textiles, and other high-specification products where domestic production offers quality control and supply chain advantages.
Regulatory requirements include OSHA[6] workplace safety standards for knitting machine operation, including noise exposure management and machine guarding. Environmental compliance under EPA[7] regulations addresses wastewater from dyeing and finishing operations that many knit mills perform in-house, air emissions from heat-setting processes, and chemical management for fabric treatment applications. Product safety standards apply to knit fabrics used in children's apparel, sleepwear, and upholstered furniture applications.
What's Included in This Industry
- Valuation multiples benchmarked to knit fabric manufacturers
- Revenue and EBITDA trends for circular knit and warp knit operations
- SBA lending data and financing terms for NAICS 313240
- Comparable transaction data from recent knit fabric M&A activity
- Industry risk factors including import competition and yarn cost volatility
- Workforce composition and labor cost benchmarks for knitting operations
- Regional market concentration across domestic knit fabric production centers
- Customer channel analysis covering apparel, athletic, and industrial buyers
- Growth projections tied to performance textile and reshoring trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Textile Mills | 313 |
| Industry Group | Fabric Mills | 3132 |
| NAICS Industry | Knit Fabric Mills | 31324 |
| National Industry | Knit Fabric Mills | 313240 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 313210 | Broadwoven Fabric Mills | Broadwoven fabric mills producing alternative fabric constructions through weaving processes that compete with knit fabrics in certain apparel and industrial markets |
| 313110 | Fiber, Yarn, and Thread Mills | Yarn and thread mills supplying the primary fiber inputs that knit fabric mills process on circular and warp knitting machines |
| 315120 | Apparel Knitting Mills | Apparel knitting mills using similar knitting equipment but producing finished garments rather than fabric yardage for sale to cut-and-sew operations |
| 313310 | Textile and Fabric Finishing Mills | Textile finishing mills providing dyeing, printing, and treatment services for knit fabrics produced by mills without in-house finishing capability |
| 313230 | Nonwoven Fabric Mills | Nonwoven fabric mills producing alternative fabric types through bonding processes that compete with knits in certain lightweight and disposable applications |
| 313220 | Narrow Fabric Mills and Schiffli Machine Embroidery | Narrow fabric mills producing knitted elastic bands, lace trim, and specialty narrow knit fabrics for apparel and industrial component applications |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | North Carolina | 34.8% | 32 |
| 2 | California | 21.7% | 20 |
| 3 | New York | 9.8% | 9 |
| 4 | Pennsylvania | 6.5% | 6 |
| 5 | Florida | 5.4% | 5 |
| 6 | New Jersey | 4.3% | 4 |
| 7 | South Carolina | 4.3% | 4 |
| 8 | Wisconsin | 3.3% | 3 |
| 9 | Texas | 3.3% | 3 |
| 10 | Minnesota | 3.3% | 3 |
% Of Establishments
0%
35%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a knit fabric mill?
Knit fabric mills typically trade at 3x to 6x EBITDA, with mills producing performance and technical knit fabrics for athletic, medical, or military applications commanding premium multiples. Commodity knit fabric producers serving basic apparel markets generally trade at lower multiples. Per U.S. Census Bureau[4] data, the sector's consolidation has concentrated value in technically differentiated operations.
What SBA loan options are available for acquiring a knit fabric mill?
The SBA 7(a) loan program[10] provides up to $5 million for acquisitions and equipment upgrades, while the CDC/504 program[11] finances facility improvements and major knitting machinery. Vertically integrated mills with in-house dyeing and finishing capabilities typically receive more favorable lending terms due to higher margins and reduced outsourcing dependency.
What are the main revenue drivers for knit fabric mills?
Revenue depends on fabric type specialization, customer diversification across apparel, athletic, and industrial segments, and vertical integration with in-house finishing capabilities. Mills producing performance fabrics with moisture management, UV protection, or antimicrobial properties generate premium pricing compared to commodity jersey and interlock producers.
What regulatory requirements affect NAICS 313240 businesses?
Mills must comply with OSHA[6] machine guarding standards for circular and warp knitting equipment, noise management protocols, and chemical handling procedures for dyeing operations. Per EPA[7] regulations, mills with integrated dyeing facilities must maintain wastewater treatment systems and air emission permits. Consumer product safety flammability standards apply to knit fabrics destined for children's apparel.
What equipment is needed for a knit fabric mill?
Core equipment includes circular knitting machines, warp knitting machines, yarn creels, fabric inspection frames, and rolling equipment. Modern computerized circular knitting machines cost $50,000 to $200,000 each, and a mid-size mill typically operates 20-80 machines. Per SBA[12] lending data, knitting equipment represents substantial capital assets with useful lives of 15-25 years when properly maintained.
How has import competition affected domestic knit fabric mills?
Import competition has reduced domestic establishment counts as commodity knit production shifted to lower-cost countries. Surviving U.S. mills compete on technical capability, rapid sampling and development, and proximity to domestic cut-and-sew operations needing quick-turn fabric delivery. Per Bureau of Labor Statistics[13] data, remaining knit fabric employment is concentrated in mills producing specialty and performance fabrics.
What growth opportunities exist for knit fabric manufacturers?
Growth areas include performance athletic fabrics, medical compression textiles, smart textiles with embedded sensors, sustainable knit fabrics from recycled yarns, and technical knits for automotive interior applications. The U.S. Census Bureau[4] tracks increasing output values in specialty knit fabric categories despite commodity volume losses to imports.
What workforce challenges do knit fabric mills face?
Key challenges include recruiting knitting machine operators and technicians, training staff for computerized pattern programming, and retaining skilled dyeing and finishing workers. Per Bureau of Labor Statistics[13] data, textile manufacturing employment has contracted steadily, shrinking the available labor pool with knitting and fabric finishing expertise.
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. Census Bureau census.gov
- [5]SBA Office of Advocacy advocacy.sba.gov
- [6]OSHA osha.gov
- [7]EPA epa.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]SBA sba.gov
- [13]Bureau of Labor Statistics bls.gov
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