NAICS 315120 Quarterly Industry Report
Apparel Knitting Mills
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 315120Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 315120 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the apparel knitting mills sector, drawing on data from the U.S. Census Bureau[4] Annual Survey of Manufactures and SBA[7] 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 315120 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Definition & Overview
Apparel Knitting Mills (NAICS 315120) encompasses establishments primarily engaged in knitting apparel or knitting fabric and then manufacturing apparel, including hosiery, socks, underwear, outerwear, and other knit garments. The industry includes both integrated knitting-to-finishing operations and specialized producers focusing on specific product categories such as sheer hosiery, athletic socks, or knit sweaters. According to the U.S. Census Bureau[4], domestic knitting mill establishments have declined substantially over the past two decades as offshore production captured the majority of basic knit apparel volume, leaving a smaller but more specialized domestic industry concentrated in the Southeast.
Remaining domestic producers compete through speed-to-market advantages, technical performance fabrics, and private-label programs that require proximity to major retail distribution centers. The athletic and performance sock segment has shown particular growth, driven by consumer willingness to pay premium prices for moisture-wicking, compression, and antimicrobial knit products. Per Bureau of Labor Statistics[5] data, the workforce has shifted toward skilled knitting machine operators capable of programming computerized circular and flat knitting equipment that produce complex stitch patterns and smooth garment constructions.
The SBA Office of Advocacy[6] notes that small knitting mills maintain competitive positions through specialization in niche product categories, quick-turn capabilities for fashion-driven retailers, and made-in-USA marketing that commands premium pricing. Capital requirements center on computerized knitting machines, yarn handling systems, and finishing equipment including dyeing, pressing, and packaging lines that represent the primary fixed asset base for valuations.
What's Included in This Industry
- Valuation multiples benchmarked to knit apparel manufacturers and hosiery producers
- Revenue and EBITDA trends for domestic knitting mill operations
- SBA lending data and financing terms for NAICS 315120
- Comparable transaction data from recent knitting mill acquisitions and mergers
- Industry risk factors including import competition and raw material cost volatility
- Workforce composition and labor cost benchmarks for knitting machine operators
- Regional market analysis concentrated in Southeast textile-producing states
- Equipment valuation data for computerized knitting and finishing machinery
- Growth projections tied to performance fabrics and domestic reshoring trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Apparel Manufacturing | 315 |
| Industry Group | Apparel Knitting Mills | 3151 |
| NAICS Industry | Apparel Knitting Mills | 31512 |
| National Industry | Apparel Knitting Mills | 315120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 313110 | Fiber, Yarn, and Thread Mills | Fiber, yarn, and thread mills supplying the primary raw materials used in knitting mill production of apparel fabrics and finished garments |
| 313240 | Knit Fabric Mills | Knit fabric mills producing greige knit fabrics that may be purchased by apparel knitting mills for cut-and-sew operations rather than integrated knitting |
| 315210 | Cut and Sew Apparel Contractors | Cut and sew apparel contractors providing outsourced sewing services for knitting mills that produce fabric but contract out garment assembly operations |
| 315250 | Cut and Sew Apparel Manufacturing (except Contractors) | Cut and sew apparel manufacturers competing in the same finished garment markets using woven rather than knit fabric construction methods |
| 313310 | Textile and Fabric Finishing Mills | Textile and fabric finishing mills providing dyeing, bleaching, and finishing services for knit fabrics produced by apparel knitting operations |
| 424310 | Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers | Piece goods and notions merchant wholesalers distributing knit fabrics and trims to apparel manufacturers and retail fabric stores nationwide |
SBA Lending Summary
32
Total SBA Loans
$12.3M
Total Loan Volume
$383K
Average Loan Size
9 yrs
Average Loan Term
9.88%
Average Interest Rate
120
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[3]
Key Insight: Apparel knitting mills seeking SBA financing typically qualify under the SBA size standards[9] for NAICS 315120, which set the threshold at 500 employees for small business classification. The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions, computerized knitting equipment upgrades, and working capital for yarn inventory. Industry CDC/504 loan program[11] offers long-term fixed-rate financing for manufacturing facility improvements, knitting machine installations, and dyeing and finishing line upgrades. Lenders evaluate production capacity use, customer concentration among retail accounts, and yarn supply agreements when underwriting transactions in this sector.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Banesco USA | 8 | $8.1M | $1.0M |
| 2 | The Huntington National Bank | 16 | $2.1M | $133K |
| 3 | Northeast Bank | 8 | $2.0M | $250K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for an apparel knitting mill?
Apparel knitting mills typically trade at 3x to 6x EBITDA, with premium valuations for mills with proprietary knitting technology, established brand partnerships, or specialized performance fabric capabilities. Mills focused on commodity hosiery products generally command lower multiples due to intense import competition. Per U.S. Census Bureau[4] data, the domestic industry's consolidation has created acquisition opportunities as smaller operators seek exit strategies.
What SBA loan options are available for acquiring a knitting mill?
The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions and equipment purchases, while the CDC/504 program[11] finances facility improvements and major knitting equipment installations. Lenders review customer diversification, equipment condition and remaining useful life, and yarn supply contract terms during underwriting.
What equipment is needed to operate an apparel knitting mill?
Core equipment includes circular knitting machines for tubular fabrics, flat knitting machines for shaped panels, linking and seaming machines for garment assembly, and finishing equipment for dyeing, pressing, and packaging. Per SBA[7] lending data, computerized knitting machines with electronic pattern control represent the largest capital expenditure, ranging from $50,000 to $500,000 per machine depending on gauge and capabilities.
How does import competition affect domestic knitting mills?
Import competition from low-cost producing countries has reduced domestic knitting mill establishments by over 70% since 2000, according to U.S. Census Bureau[4] establishment data. Surviving domestic mills compete through quick-response production for fashion-driven retailers, performance and technical fabrics, military and government contract work, and made-in-USA brand positioning.
What are the main cost drivers for knitting mills?
Yarn and fiber costs typically represent 40-55% of production costs, with cotton, nylon, polyester, and specialty fiber prices subject to commodity market volatility. Labor costs for skilled knitting machine operators, maintenance technicians, and quality control staff represent the second largest cost category. Per Bureau of Labor Statistics[5] data, production worker wages in textile knitting average above the broader manufacturing median.
What workforce challenges do apparel knitting mills face?
Key challenges include recruiting knitting machine technicians capable of programming computerized equipment, retaining experienced operators in regions with limited textile industry presence, and training workers on increasingly automated production systems. The aging workforce in traditional textile regions creates succession risks for both operators and the skilled labor pool.
What growth opportunities exist for domestic knitting mills?
Growth opportunities include performance and athletic knit products commanding premium pricing, nearshoring trends returning production from Asia, military and institutional contract manufacturing, and technical textiles for medical and industrial applications. Per U.S. Census Bureau[4] data, the performance apparel segment has driven domestic knitting investment in advanced machinery capable of smooth and compression garment production.
How do knitting mills manage raw material costs?
Mills manage yarn cost volatility through forward purchase contracts with fiber suppliers, maintaining strategic inventory buffers, diversifying fiber sources across domestic and imported yarns, and incorporating cost escalation clauses in customer pricing agreements. Cotton price fluctuations tracked by the USDA Economic Research Service[12] directly affect production costs for cotton-blend knit apparel products.
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. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]SBA sba.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]USDA Economic Research Service ers.usda.gov
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