A new report from the ITMF measures the manufacturing costs of different textile products in the primary textile industry broken down into various cost elements at each stage of the textile value chain.
The publication reveals that producing 1 m of woven fabric from cotton 1-1/8" in a continuous open width process (COW) cost US$ 1.36/m on average in 2021 (Fig. 1, range between $1.11/m in India and $1.91/m in Italy).
Spinning the yarn needed to produce this meter of a finished woven fabric costs 19% of the fabrics’ total production cost on average worldwide (range between 15% in Korea and 22% in Central America). Weaving this yarn adds an extra 19 percentage points (pp) on average to the total production cost of the fabric (range between 14 pp in Egypt and 26 pp in Italy). Finally, finishing this meter of woven fabric increases the final production cost by 31%.
The study further reveals that the average cost of raw materials needed to produce this meter of woven fabric was on average 31% of the fabric’s production cost. According to the research, Mexico and Central America are comparatively more dependent on energy cost for spinning NE/30 yarn then the other countries in the panel (Fig. 2).
The cost of power represents 28% and 25% of manufacturing costs in both countries, respectively. Dependency on labor costs is very high in Italy and the USA with shares of 40% and 38% of manufacturing costs. This cost element represents only 2-3% of total manufacturing costs in India, Pakistan, Bangladesh, and Egypt. Spinners of NE/30 yarn in Egypt, Central America and Pakistan further face high capital cost (over 40% of their manufacturing costs).
The new edition of the International Production Cost Comparison (IPCC) is published by the International Textile Manufacturers Federation (ITMF), Zurich/Switzerland. The 2021 edition adds Central America and Mexico to the historical cost analysis in Bangladesh, Brazil, China, Egypt, India, Indonesia, Italy, Korea, Pakistan, Turkey, the USA, and Vietnam. Cost factors, manufacturing costs and total production costs are available for different textile products in the segments of spinning, draw texturing, weaving, knitting, and finishing.
The full report is available from the ITMF.