Energy Costs Surge to Record Levels

Data released this month by the International Textile Manufacturers Federation (ITMF) shows that energy costs now account for 24-30% of total production expenses for circular knitting mills globally. This represents an 8 percentage point increase compared to the same period last year.

European facilities have been hit hardest, with electricity prices rising 31% year-to-date. However, the pressure is not limited to Europe. Mills in North America and Asia have also reported significant increases, with many now citing energy as their single largest operating expense.

"We used to plan our production schedule around yarn deliveries. Now we plan it around peak electricity rates."

— A senior production manager at a large knitting mill in Turkey

Retrofits Outpace New Machine Purchases

Contrary to expectations, most manufacturers are not investing in entirely new machinery. Instead, they are opting for targeted retrofits of their existing equipment with energy-saving components. Industry figures show demand for these parts has grown 37% in the first five months of 2026.

The most sought-after upgrades include:

• Precision automatic lubrication systems
• Energy-saving air jet systems for lint removal
• Low-friction ceramic yarn guides
• High-efficiency transmission belts
• Variable frequency drive retrofits

This trend was clearly visible at the recent ITM Istanbul 2026 exhibition, where over 60% of attendees prioritized visiting spare parts and retrofitting booths over new machinery displays.

Energy-Efficient Products See Record Demand

Manufacturers specializing in energy-efficient textile components are reporting unprecedented order volumes this quarter.

ShengSong, a leading supplier of lubrication systems, has seen a 45% increase in global orders for its energy-saving product lines in May alone. Its SS30T2 dual circuit oiler has emerged as a popular retrofit option, with independent testing demonstrating up to 35% reduction in lubrication-related energy consumption and 60% lower oil usage.

Most mills report that these upgrades typically pay for themselves within 6 to 12 months through reduced utility bills alone.

Additional Benefits Drive Adoption

While energy cost reduction remains the primary motivation, manufacturers are discovering additional advantages to these upgrades:

• Extended service life of critical components such as needles and sinkers
• Reduced unplanned downtime due to fewer mechanical failures
• Improved fabric quality with fewer defects
• Enhanced compliance with global sustainability reporting requirements

Market Outlook

Industry analysts predict that demand for energy-efficient textile machinery spare parts will continue to grow at a compound annual rate of 28% through 2028. Energy prices are expected to remain elevated for the foreseeable future, and global sustainability regulations are set to become increasingly stringent.

Mills that proactively invest in energy efficiency now are positioning themselves for long-term competitiveness in a challenging global market.