The natural fiber processing industry can basically be divided into two broad sectors; the processing of the raw fiber into yarn and then into fabric and textiles (called textile sector for short), and the processing of the fabric and textile into apparel, furnishings, and other final products (called the apparel sector for short). Both sectors of the industry seemed to be primarily influenced by traditional location and expansion factors, particularly the availability and cost of labor, utilities, waste processing, and suitable building sites.

Non-traditional location characteristics such as low housing costs, low tax rates, quality of life factors, access to universities, and access to airports play at most a secondary role in the location decision. Although one or more of these factors may influence a particular site selection or expansion decision, it is extremely doubtful that a firm would select a site to locate or expand without the major required traditional factors available or addressed to the sufficient satisfaction of the company. Government financial and tax incentives, and non-financial incentives such as infrastructure and public works support, play a more significant role as they assist the company with the traditional location factors required, although they too are still secondary to the major traditional characteristics of labor, land, and utility availability and costs.