Almost 85% of specialty textile companies raised their prices in 2025, according to the Advanced Textiles Association's annual industry survey, and only 8% of respondents reported their input costs held steady. The survey, conducted from mid-February to early March, captured a sector buffeted by tariff reversals, a 600%-plus spike in antimony prices, and the early tremors of a new Middle East conflict.

The tariff picture shifted under respondents' feet while the survey was open. During that window, the Supreme Court ruled that many of the tariffs imposed in 2025 by President Donald Trump under the International Emergency Economic Powers Act were unlawful, and the Court of International Trade ordered Customs and Border Protection to refund the duties. For sourcing teams, that ruling converts 2025 tariff payments into a recoverable line item — and adds another layer of uncertainty to 2026 planning.

Tariff exposure varied with sourcing structure. Companies relying on domestically sourced materials, or on inputs certified under USMCA and DR-CAFTA rules of origin, largely moved goods across North American borders tariff-free after industry lobbying secured exemptions for certified products. But critical raw material inputs imported unilaterally still pushed costs up across the board.

The sharpest non-tariff cost shock came from China. "Last year, China announced export restrictions on antimony trioxide," said ATA chairman Craig Zola, vice president of marketing and distribution at Herculite in Emigsville, Pa. "This is a primary flame-retardant additive used in PVC-based products throughout our industry. Last year, antimony shipments from China dropped 97%, and these shortages have driven antimony prices up 600%-plus."

The cost breakdown from the survey: 46% of respondents saw costs rise 10%–25%, 38% saw increases under 10%, and 8% reported jumps above 25%. Beyond supplier price increases, companies cited labor costs (62%) and tariffs (54%) as drivers of their own price hikes. The pattern tracks recent history — cost increases above 10% hit 70% of respondents in 2021 and 63% in 2022.

The respondent base skews small and domestic. About 70% of participating companies employ fewer than 50 people, and nearly a quarter operate with one to four staff. End product fabricators made up 38% of respondents; suppliers and distributors accounted for 25%. Top end markets were government/military (55%), manufacturing (51%), consumer products and home furnishings (47%), and sports/recreational and marine (45% each). Revenue in 2025 split nearly evenly: just over a quarter reported declines, while roughly half reported gains, split between those up more than 10% and those up slightly less.

Confirmed order-flow data points from named suppliers illustrate the divergence. AR Tech of Fontana, Calif., saw aerospace development contracts — expected to convert in 2025 — arrive only in the final two months of the year, pushing shipments into 2026 and setting up a growth year. "These are contracts that require significant time to produce, shipments did not occur until the beginning of 2026," said Bud Weisbart, vice president and co-owner.

First Response Custom Sewing of Frederick, Md., saw sales rise early in 2025 before slowing sharply late in the year, which president and CEO Joe Bleach attributed to customers holding inventories low amid tariff uncertainty. A large order backlog kept the shop's workers busy through year-end. Classic Tents & Events of Norcross, Ga., posted a strong 2025 despite tariff-driven pricing and lead-time effects, and will subcontract with tent companies across 43 states in 2026, with FIFA World Cup demand ahead.

The oil shock landed just as the survey closed. The war in Iran sent oil and gas prices spiking, and the consumer price index responded higher in March. Beyond transportation costs, the spike hit petrochemical inputs — polypropylene, polyethylene and engineering resins — with further increases and potential supply disruptions expected throughout 2026. That bears directly on coated, laminated and composite fabric producers, 27% of the respondent base.

The forward outlook is nonetheless positive: 73% of respondents project revenue growth in 2026, with 36% of all respondents expecting gains above 10%. Priorities for the next two years rank product diversification, R&D, and personalized-product capability at the top. Nearly half of companies plan new product lines within existing capabilities or market entry; more than a third plan equipment purchases; almost a quarter are targeting a new facility. Supply chain and sustainability improvements ranked neutral, and automation and AI adoption sat near the bottom — a gap one anonymous respondent flagged as a concern.

A potential demand-side tailwind emerged as the report went to press: the Department of the Interior announced it will shift uniform purchases to American-made products. Bleach framed reshoring in similar terms: "With products being brought back to our country, it should open new opportunities to expand business while providing a new lifeline to the textile industry."

For sourcing and compliance teams, the survey forces two near-term decisions: whether to file refund claims on IEEPA tariffs paid in 2025, and whether to qualify inputs under USMCA or DR-CAFTA rules of origin — currently the only reliable tariff-free lanes — while auditing exposure to Chinese-controlled chemistry such as antimony trioxide before the 2026 petrochemical cost cycle hits.