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Canadian Apparel

Apparel Market

The Canadian apparel market was valued at $10 382 million in 2005, representing an insignificant decline of 0.6 percent from the previous year. The year-to-year decline was borne totally by reduced domestic shipments. They fell to $3 386.2 million in 2005, a year-to-year decline of 12.6 percent. Imports continued their relentless increase, rising 6.5 percent to $6  995.8 million in the one-year period.


Table 1:1 - Market, Canadian Apparel (NAICS 315), Canada, 1995-2005
($ Millions)
  Shipment Exports Domestic
Shipments
Imports Market
1995 6 568 379 1 355 145 5 213 234 3 589 307 8 802 541
1996 6 677 649 1 660 749 5 016 900 3 372 827 8 389 727
1997 6 947 021 2 036 235 4 910 786 4 061 648 8 972 434
1998 6 967 290 2 496 056 4 471 234 4 705 307 9 176 541
1999 6 815 988 2 749 779 4 066 209 4 721 724 8 787 933
2000 7 380 000 3 042 500 4 337 500 5 310 400 9 647 900
2001 6 993 000 2 960 400 4 032 600 5 895 869 9 928 469
2002 6 784 711 3 070 150 3 714 561 6 085 968 9 800 529
2003 7 032 245 2 922 350 4 109 895 6 140 820 10 250 715
2004 6 420 858 2 545 214 3 875 644 6 570 896 10 446 540
2005 5 593 960 2 207 722 3 386 238 6 995 811 10 382 048
Manufacturing data are based on the NAICS. Trade data are based on the HS.
Source: Apparel & Textiles Directorate, Service Industries and Consumer Products Branch (SICPB), Industry Canada, and data from Statistics Canada.

In the most recent five-year period of 2000-2005, driven by rising imports and declining domestic shipments, the market has risen 7.6 percent. In the ten-year period of 1995-2005, again reflecting rising imports and declining domestic shipments, the market has risen 17.9 percent.

With few exceptions, domestic shipments of apparel have been in decline historically and continue so to date. For example, domestic shipments of apparel declined 7.9 percent in 2001-2002, 5.7 percent in 2003-2004 and, as noted earlier, 12.6 percent in 2004-2005. Overall, they were 21.9 percent lower in 2005 than five years ago, and 35 percent lower than ten years ago.

Imports, in contrast, have been exhibiting year-to-year increases since 1997, ranging from a peak of 20.4 percent in 1996-1997 to a low of 0.9 percent in 2002-2003. As noted earlier, they were some 6.5 percent higher in 2005 than a year ago. Overall, they were 31.7 percent higher in 2005 than five years ago, and a massive 94.9 percent higher than ten years ago.

Table 1:2 - Changes (%), Apparel Market, Canada
  Shipment Exports Domestic
Shipments
Imports Market
1996-1995 1.7 22.6 -3.8 -6.0 -4.7
1997-1996 4.0 22.6 -2.1 20.4 6.9
1998-1997 0.3 22.6 -9.0 15.8 2.3
1999-1998 -2.2 10.2 -9.1 0.3 -4.2
2000-1999 8.3 10.6 6.7 12.5 9.8
2001-2000 -5.2 -2.7 -7.0 11.0 2.9
2002-2001 -3.0 3.7 -7.9 3.2 -1.3
2003-2002 3.6 -4.8 10.6 0.9 4.6
2004-2003 -8.7 -12.9 -5.7 7.0 1.9
2005-2004 -12.9 -13.3 -12.6 6.5 -0.6
2005-2000 -24.2 -27.4 -21.9 31.7 7.6
2005-2995 -14.8 62.9 -35.0 94.9 17.9
Source: Based on data in Table 1:1.

Canadian apparel manufacturers continue to lose market share to offshore suppliers. Their share dropped to 32.6 percent in 2005, a decline of 12.1 percent from the previous year. Also, the domestic shipments share of the market in 2005 showed a 27.5 percent decline from five years ago and a 44.9 percent decline from ten years ago.

Table 1:3 - Market Shares and Changes - Canadian Apparel, Canada
(1995-2005)
  Domestic
Shipments
Imports Market Share Changes
from Previous Year
Domestic
Shipments
Imports
1995 59.2 40.8 -2.2 3.4
1996 59.8 40.2 1.0 -1.4
1997 54.7 45.3 -8.5 12.6
1998 48.7 51.3 -11.0 13.3
1999 46.3 53.7 -5.0 4.8
2000 45.0 55.0 -2.8 2.4
2001 40.6 59.4 -9.7 7.9
2002 37.9 62.1 -6.7 4.6
2003 40.1 59.9 5.8 -3.5
2004 37.1 62.9 -7.5 5.0
2005 32.6 67.4 -12.1 7.1
2005-2000 na na -27.5 22.4
2005-1995 na na -44.9 65.3
Source: Based on data in Table 1:1.

As imports continue to displace domestic shipments, the import share of a lower apparel market in 2005 rose to 67.4 percent that year, a gain of 7.1 percent from the previous year. Overall, import shares have risen 22.4 percent in five years, and 65.3 percent in ten years.

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Apparel Industry

According to Statistics Canada, the Canadian apparel industry in 2005 comprised some 2 150 establishments, employed about 69 911 workers, and shipped $5 594 million of apparel, of which some 39.5 percent was exported mainly to the U.S.A.

Table 2:1 - Apparel Industry (NAICS 315), Canada, 1995-2005
  Establishments
(No.)
Employment (No.)
Production Total
1995 1 722 67 257 79 942
1996 1 756 68 216 80 178
1997 1 641 71 549 84 025
1998 1 536 74 170 86 954
1999 1 342 70 744 83 888
2000 2 874 88 695 100 820
2001 2 842 94 260 106 226
2002 2 788 78 845 94 636
2003 2 703 72 798 87 886
2004 2 468 63 700 80 245
2005 2 150 55 497 69 911
Manufacturing data are based on the NAICS. Trade data are based on the HS.
Source: Apparel & Textiles Directorate, Service Industries and Consumer Products Branch (SICPB), Industry Canada, and data from Statistics Canada.

Table 2:2 - Manufacturing Activity, Apparel Industry (NAICS 315), Canada, 1995-2005
Shipments ($ Millions)
  Total Domestic
Shipments
Exports
1995 6 568 379 5 213 234 1 355 145
1996 6 677 649 5 016 900 1 660 749
1997 6 947 021 4 910 786 2 036 235
1998 6 967 290 4 471 234 2 496 056
1999 6 815 988 4 066 209 2 749 779
2000 7 924 958 4 337 500 3 042 500
2001 7 838 614 4 032 600 2 960 400
2002 7 567 924 3 714 561 3 070 150
2003 7 324 465 4 109 895 2 922 350
2004 6 420 858 3 875 644 2 545 214
2005 5 593 960 3 386 238 2 207 722
Manufacturing data are based on the NAICS. Trade data are based on the HS.
Source: Apparel & Textiles Directorate, Service Industries and Consumer Products Branch (SICPB), Industry Canada, and data from Statistics Canada.

The Canadian apparel industry accounts for 1.2 percent of manufacturing Gross Domestic Product, 1.2 percent of manufacturing investment and 4.5 percent of manufacturing employment. The 10th largest manufacturing sector in Canada, the apparel industry, continues to restructure to exploit export opportunities and compete effectively with import competition.

"The industry is an important source of employment for highly skilled professions, as well as entry-level positions for new immigrant workers and women, who account for the majority of sewing machine operators and other production related jobs. Apparel is manufactured in all provinces and territories, with Quebec accounting for 55 percent of the industry while significant concentrations of firms are found in Ontario, Manitoba and British Columbia. As of 2004, Canadian apparel industry shipments total $6.5 billion annually." -- Eileen Melnick McCarthy, Director - Communications, Canadian Apparel Federation.

The majority of apparel companies are Canadian-owned. Foreign-owned firms, which are mainly subsidiaries of U.S. multi-national corporations, account for about 2 percent of the total. Comprising the larger firms in the industry, they are heavily involved in manufacturing large volumes of standardized products such as jeans, underwear and foundation garments. Notwithstanding the adoption of computer-assisted technology in several stages of apparel production, for example, computer-assisted design, computer-assisted pattern making/ grading, computer-assisted marking, automated cutting, and automated spreading, the apparel industry remains fragmented, labour intensive and a low barriers-to-entry industry.

Table 2:3 - % Changes, Apparel Industry, Canada
  Establishments Employment
Production Total
1995-1994 -1.9 -1.0 -1.6
1996-1995 2.0 1.4 0.3
1997-1996 -6.5 4.9 4.8
1998-1997 -6.4 3.7 3.5
1999-1998 -12.6 -4.6 -3.5
2000-1999 114.2 25.4 20.2
2001-2000 -1.1 6.3 5.4
2002-2001 -1.9 -16.4 -10.9
2003-2002 -3.0 -7.7 -7.1
2004-2003 -8.7 -12.5 -8.7
2005-2004 -12.9 -12.9 -12.9
2005-2000 -25.2 -37.4 -30.7
2005-1995 24.9 -17.5 -12.5
Source: Based on data of Table 2:1.

Table 2:4 - % Changes, Apparel Manufacturing, Canada
Shipments
  Shipments Exports Domestic
Shipments
1995-1994 5.4 25.1 1.3
1996-1995 1.7 22.6 -3.8
1997-1996 4.0 22.6 -2.1
1998-1997 0.3 22.6 -9.0
1999-1998 -2.2 10.2 -9.1
2000-1999 8.3 10.6 6.7
2001-2000 -5.2 -2.7 -7.0
2002-2001 -3.0 3.7 -7.9
2003-2002 3.6 -4.8 10.6
2004-2003 -8.7 -12.9 -5.7
2005-2004 -12.9 -13.3 -12.6
2005-2000 -24.2 -27.4 -21.9
2005-1995 -14.8 62.9 -35.0
Source: Based on data of Table 2:2.

Table 2:5 - % Changes, Apparel Industry, Canada
  Domestic
Shipments/
Total Shipments
Exports/
Total Shipments
1995-1994 -3.9 18.7
1996-1995 -5.3 20.5
1997-1996 -5.9 17.9
1998-1997 -9.2 22.2
1999-1998 -7.0 12.6
2000-1999 -1.5 2.2
2001-2000 -1.9 2.7
2002-2001 -5.1 6.9
2003-2002 6.7 -8.2
2004-2003 3.3 -4.6
2005-2004 0.3 -0.4
2005-2000 3.0 -4.3
2005-1995 -23.7 91.3
Source: Based on data of Table 2:2.

Total apparel shipments were 12.9 percent lower in 2005 from one year ago, 24.2 percent lower in the five-year period of 2000-2005 and 14.8 percent lower in the ten-year period of 1995-2005. Domestic shipments followed the total shipments pattern of decline in all three periods. They went down 12.6 percent in the one-year period of 2004-2005, 21.9 percent in the five-year period of 2000-2005 and 35 percent in the ten-year period of 1995-2005. Exports differed somewhat with declines in two periods, namely, -13.3 percent in the one-year period of 2004-2005 and -27.4 percent in the five-year period of 2000-2005, but a massive 62.9 percent increase in the ten-year period of 1995-2005.

Table 2:6 - Performance Measures, Apparel Manufacturing (NAICS 315), Canada, 1995-2005
Shipments ($ Millions)
  Domestic Shipments/
Total Shipments
Exports/
Total Shipments
1995 79.4 20.6
1996 75.1 24.9
1997 70.7 29.3
1998 64.2 35.8
1999 59.7 40.3
2000 58.8 41.2
2001 57.7 42.3
2002 54.7 45.3
2003 58.4 41.6
2004 60.4 39.6
2005 60.5 39.5
Source: Based on data of Table 2:2.

To offset the continuing decline of the domestic shipments share of total textiles shipments, domestic manufacturers continue to engage in sustained export market expansion. Thus, despite the 13.3 percent decline in export volume in 2004-2005, despite exports as a percentage of total shipments being virtually unchanged in 2005 from a year ago but down 4.3 percent from five years earlier, this share recorded a remarkable 91.3 percent gain from ten years ago.

The Canadian apparel industry’s investments in machinery and equipment and its labour skills upgrading reflect the industry’s drive to sustained international competitiveness. In 2005, it is estimated that the apparel industry allocated some $100.3 million for new machinery, equipment and buildings, with about 72 percent taking place in cut and sew apparel manufacturing.

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Created: 2005-05-25
Updated: 2007-07-19
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