NAICS 313320 Quarterly Industry Report
Fabric Coating Mills
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 313320Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 313320 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the fabric coating 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 313320 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Definition & Overview
Fabric Coating Mills (NAICS 313320) encompasses establishments primarily engaged in coating, laminating, varnishing, waxing, and rubberizing textiles and apparel. Products include vinyl-coated upholstery fabrics, waterproof coated outerwear materials, rubber-impregnated industrial fabrics, and laminated composites for automotive, marine, and aerospace applications. According to the U.S. Census Bureau[4], approximately 60 active establishments operate in this specialized sector, employing nearly 7,000 workers and producing high-value coated and laminated fabric products for diverse industrial and consumer markets.
Fabric coating operations add performance properties including water resistance, flame retardancy, UV protection, antimicrobial activity, and structural reinforcement to base textile substrates. The SBA Office of Advocacy[5] notes that most fabric coating mills qualify as small businesses, competing on technical formulation expertise, application precision, and the ability to develop custom coating solutions for specific customer performance requirements.
Regulatory requirements include OSHA[6] workplace safety standards for chemical handling, solvent exposure management, and fire prevention in coating application areas. Environmental compliance under EPA[7] regulations addresses volatile organic compound emissions from solvent-based coating processes, wastewater treatment for waterborne coating operations, and hazardous waste management for chemical residues. Customers in automotive, aerospace, and military markets impose additional quality certifications and material testing requirements that must be maintained through regular audits and documented quality management systems.
What's Included in This Industry
- Valuation multiples benchmarked to fabric coating and laminating operations
- Revenue and EBITDA trends for coated and laminated textile producers
- SBA lending data and financing terms for NAICS 313320
- Comparable transaction data from specialty textile finishing M&A activity
- Industry risk factors including chemical compliance costs and solvent regulations
- Workforce composition and labor cost benchmarks for coating operations
- Regional market analysis across domestic fabric coating production centers
- Customer channel analysis covering automotive, marine, and industrial buyers
- Growth projections tied to performance textile and sustainable coating trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Textile Mills | 313 |
| Industry Group | Textile and Fabric Finishing and Fabric Coating Mills | 3133 |
| NAICS Industry | Fabric Coating Mills | 31332 |
| National Industry | Fabric Coating Mills | 313320 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 313310 | Textile and Fabric Finishing Mills | Textile finishing mills performing complementary upstream finishing processes including dyeing and printing before fabrics undergo coating or lamination treatments |
| 313210 | Broadwoven Fabric Mills | Broadwoven fabric mills producing base textile substrates that coating mills transform into coated and laminated performance products |
| 313230 | Nonwoven Fabric Mills | Nonwoven fabric mills producing substrates that receive coating and lamination treatments for medical, filtration, and barrier applications |
| 313240 | Knit Fabric Mills | Knit fabric mills producing stretch substrates that coating mills laminate and treat for performance apparel and industrial applications |
| 325520 | Adhesive Manufacturing | Adhesive manufacturers supplying bonding agents, lamination adhesives, and coating compounds used in fabric coating and laminating processes |
| 332999 | All Other Miscellaneous Fabricated Metal Product Manufacturing | All other miscellaneous fabricated metal product manufacturers using rubber-coated and laminated fabrics in industrial gasket and sealing applications |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Massachusetts | 13.5% | 19 |
| 2 | California | 9.9% | 14 |
| 3 | South Carolina | 7.1% | 10 |
| 4 | North Carolina | 7.1% | 10 |
| 5 | Georgia | 7.1% | 10 |
| 6 | Ohio | 6.4% | 9 |
| 7 | Texas | 5.7% | 8 |
| 8 | Pennsylvania | 4.3% | 6 |
| 9 | Michigan | 4.3% | 6 |
| 10 | New Jersey | 3.5% | 5 |
% Of Establishments
0%
13%
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 fabric coating mill?
Fabric coating mills typically trade at 4x to 7x EBITDA, with operations serving automotive, aerospace, or military customers with certified coatings commanding premium multiples. Mills producing commodity vinyl-coated upholstery or basic waterproof fabrics generally trade at 3x to 5x EBITDA. Per U.S. Census Bureau[4] data, proprietary formulation capabilities and customer certifications represent material intangible value in coating mill transactions.
What SBA loan options are available for acquiring a fabric coating mill?
The SBA 7(a) loan program[10] provides up to $5 million for acquisitions and equipment purchases, while the CDC/504 program[11] finances major coating equipment and environmental control systems. Environmental due diligence including Phase I assessments is standard for coating mill transactions given chemical handling and emission management requirements.
What are the main revenue drivers for fabric coating mills?
Revenue depends on product specialization, customer certification status in automotive and aerospace supply chains, and the breadth of coating technologies offered. Mills with both solvent-based and waterborne coating capabilities, plus lamination services, generate more diversified revenue streams than single-technology operations.
What regulatory requirements affect NAICS 313320 businesses?
Mills must comply with EPA[7] regulations governing volatile organic compound emissions from solvent-based coating lines, wastewater treatment requirements, and hazardous waste management. Per OSHA[6] standards, worker protection includes chemical exposure monitoring, fire prevention systems in coating areas, and respiratory protection programs for solvent handling operations.
What equipment is needed for a fabric coating mill?
Core equipment includes knife-over-roll coating heads, reverse roll coaters, spray application systems, lamination presses, curing ovens, and emission control systems. Modern coating lines range from $500,000 to $5 million depending on width capacity, coating technology, and automation. Per SBA[12] lending data, environmental control systems including VOC oxidizers and wastewater treatment add further capital requirements.
How do environmental regulations affect fabric coating operations?
VOC emission regulations have driven a transition from solvent-based to waterborne and UV-curable coating technologies, requiring capital investment in new application systems. Wastewater treatment from cleaning and waterborne coating operations adds ongoing operating costs. Per EPA[7] air quality standards, many coating mills must operate thermal or catalytic oxidizers to control solvent emissions, with compliance costs representing a meaningful share of operating expenses.
What growth opportunities exist for fabric coating manufacturers?
Growth areas include sustainable and bio-based coating formulations, performance coatings for electric vehicle interiors, antimicrobial fabrics for healthcare environments, and advanced barrier coatings for personal protective equipment. The U.S. Census Bureau[4] tracks growing demand for coated textile products driven by expanding applications in construction, automotive, and medical sectors.
What workforce challenges do fabric coating mills face?
Key challenges include recruiting chemists for coating formulation development, training operators for precision coating application equipment, and maintaining environmental compliance staff. Per Bureau of Labor Statistics[13] data, fabric coating positions require specialized chemical handling and process control skills that distinguish this sector from general textile manufacturing labor markets.
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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