Looks like the US rag industry is ripe for disruption: if you source old clothes & cut locally in Asia, you should be able to cut costs considerably (lower wages, less transport). Of course, the remaining non-trivial problem is getting US buyers to trust you.
In the article they explain this is already done and elaborate on it in several directions.
Apparently Painters, Mechanics and Auto-Body shops (at the very least) have need for these recycled rags!
Which, from a pure business perspective is fascinating... who would have thought that there was a market for rags?