I cut the fabric into 4-inch wide strips,
starting with the narrowest, making each subsequent layer 2-inches wider than the one below it. Hem the edges then lay out all the strips and pin them, together before sewing.
Next, I joined the fabric horizontally across all the layers starting at the bottom. Then measured up 2.5-inches for my size 13s, 2.25-inches for the 11s, 2-inches for 10.75s and 10.5s, etc, up to 1-inch for the 3s, 2s, and 1s. The smallest fabric strip in front holds the double point needles and I use the wider fabric slots for circular needles.
The clip on top is an quilt clip from Pottery Barn that I bought in the 80s. Now I have all my circular and double point needles at hand without tangles or mess.