Technical Change And Growth In The Textile Industry: The Nonwoven Sector

Abstract

We examine the performance of a growing sector of the textile industry: nonwoven fabric mills.  This sector is emerging from what was once a marginal manufacturing sector to become increasingly a focus for the future of textiles in the US.  From disposable diapers to bleach wipes, medical apparel to house wrapping, new products are entering the market; these products are made possible by technological advancements in adhesion techniques, fiber modifications and delivery advancements. In order to better understand these significant industry dynamics, we estimate a translog cost function to calculate the elasticity of substitution between capital, labor, energy and materials and to see how these change over time. Additionally, we track trends in the elasticity of scale and the impact of technological change. Textile manufacturing in the United States is shifting away from commodity products and the innovative nonwovens sector provides a much needed exemplar for future textile manufacturing.