STATE OF THE INDUSTRY Mining and entertainment/events are markets in which more respondents expect a decline rather than growth. More than half (56%) of Automated patterning (CAD) gear is very interesting for accuracy and time savings but the cost must come down substantially to make sense for my operation. -SURVEY RESPONDENT organizations expect to enter new markets in the coming years. Look for increased competition in smart fabrics and manufacturing as well as energy, infrastructure and safety/ protective markets. These are the top mentioned markets for new entry. Few (17%) expect to reduce the number of markets they serve. Nearly all (91%) businesses serve domestic markets, with slightly higher participation in the southern U.S. and northeastern U.S. More than half operate internationally, with 42% deriving revenues from Canada and 31% operating in Europe. Some 45% expect to expand their reach across new areas of the U.S. and 27% plan to expand globally in the next two years. Fig. 4 END USERS' MARKETS & ANTICIPATED GROWTH ■ % Serve market ■ % Anticipating growth (decline) Government/Military 49% Architecture/Building Construction (commercial) Sports/Recreational Manufacturing Marine Hospitality Consumer Products/Home Furnishings/Apparel/Footwear Automotive Architecture/Building Construction (residential) Medical Entertainment/Events -2% Agriculture Safety/Protective Aerospace Landscape Infrastructure Transportation/Shipping Smart Fabrics/E-textiles Energy 46% 41% 40% 38% 37% 33% 33% 33% 30% 30% 29% 28% 26% 23% 23% 20% 20% 18% Mining -11% 17% 26 SPECIALTY FABRICS REVIEW / July 2021 6% 6% 17% 5% 20% 14% 16% 17% 15% 6% 16% 0% 20% 28% 15% 27% Manufacturing practices Approximately three-fourths of the respondents produce a physical product by way of manufacturing. Businesses that do not engage in manufacturing include about one-third of suppliers and one-third of design firms. Machinery is typically owned as opposed to rented (95% owned/5% rented). Design firms are most likely to rent the equipment they need. The age of machinery ranges from brand new (purchased in 2021) to more than 100 years old, but more than half of respondents have purchased new equipment in the last five years. Nearly 25 percent purchase new equipment " only when equipment is broken beyond repair. " Just over half plan to invest in capital equipment purchase(s) in the next two years. Typically, inputs are sourced directly from the manufacturer (56%), though one-third (32%) are sourced through a distributor; the remainder are manufactured internally (12%). Most report using a subcontractor 21% 20% sometimes, citing that the subcontractor has specialized equipment that is otherwise unavailable to them. About half serve as a subcontractor and a few do so regularly. Most companies have implemented some automation, but few (17%) have automated more than half of their operations (Fig. 6). One-third plan to invest in automation in the next two years as part of their strategic growth plans. Automated cutting equipment followed by sewing capabilities are the equipment types and functions that are most under consideration. Among the third (38%) of companies that have not automated, many report that it is not a good fit for their primarily custom work. Others mention the lack of skilled labor to operate the equipment and the lack of perceived