Industry Snapshot: Textile Manufacturing: 2004 - 2008
Definition:
The Canadian textiles industry is comprised of the following North American Industry Classification (NAICS) codes:
313 - Textile Mills covers the manufacture and dyeing and finishing of yarns, fabrics and some textiles products
314 - Textile Product Mills covers the manufacture of final products such as carpets, rugs, window coverings, etc.
325220 - Artificial and Synthetic Fibres and Filaments Manufacturing covers monofilament, filament yarn, staple or tow production.
Statistical Summary:
| Economic Indicators | 2004 | 2005 | 2006 | 2007 | 2008 | Percentage Change 2008-2007 |
CAAGR |
|---|---|---|---|---|---|---|---|
| Apparent Domestic Market |
9,906.3 | 9,556.6 | 8,536.9 | 8,243.6 | 7,821.6 | -5.1% | -5.7 |
| Shipments | 7,129.3 | 6,647.2 | 5,585.9 | 5,236.8 | 4,621.6 | -11.7% | -10.3 |
| Gross Domestic Product | 2,731.2 | 2,463.8 | 2,156.1 | 2,064.2 | 1,814.2 | -12.1% | -9.7 |
| Manufacturing Intensity Ratio | 38.3 | 37.1 | 38.6 | 39.4 | 39.3 | -0.4% | 0.6 |
| Total Imports | 5,731.6 | 5,633.3 | 5,367.5 | 5,192.8 | 4,999.0 | -3.7% | -3.4 |
| Domestic Exports | 2,954.6 | 2,724.0 | 2,416.4 | 2,185.9 | 1,799.1 | -17.7% | -11.7 |
| Trade Balance | -2,777.0 | -2,909.4 | -2,951.1 | -3,006.9 | -3,199.9 | 6.4% | 3.6 |
| Import Penetration | 57.9% | 58.9% | 62.9% | 63.0% | 63.9% | 1.5% | 2.5 |
| Export Orientation | 41.4% | 41.0% | 43.3% | 41.7% | 38.9% | -6.7% | -1.6 |
| Domestic Market Share | 42.1% | 41.1% | 37.1% | 37.0% | 36.1% | -2.5% | -3.8 |
| Labour Productivity | 61.1 | 65.6 | 67.2 | 63.2 | 74.7 | 18.2% | 5.1 |
| Employment (Thousands) | 44.7 | 37.5 | 32.1 | 32.7 | 24.3 | -25.6% | -9.9 |
|
Source: Statistics Canada. Trade Data Online Definitions: 1 CAAGR - Compound Average Annual Growth Rate |
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Economic Overview:
In 2008, the textiles industry employed approximately 24,300 workers, and manufactured slightly over $4.6 billion worth of textile products, of which 38.9 percent were exported. While industry statistics have, for the most part, indicated a "bottoming out" in the 2004 to 2007 period, the most recent annual data suggests that declines in the major economic indicators in the textiles industry have accelerated, likely due to the deteriorating economic condition in 2008. The rates of decline for both shipments and GDP increased in 2007-2008, compared to the compound average annual growth rate over 2004 to 2008, despite a slight softening of the decline in the apparent domestic market.
Canadian textile exports dropped significantly in 2008 (17.7 percent), largely due to a marked decline in exports to the US (particularly for knitted / crocheted and manmade filaments), where Canadian exports continue to face competition from China, India and Pakistan in a number of textile subsectors. Total US imports of textile products are down, however, likely as a result of declining American domestic production of many of textiles traditional downstream industries, particularly apparel, home furnishings and in the transportation sector. Despite this fact, Canada remains the fourth largest textile importer to the US, while the US is Canada's largest textiles export market representing 78.4 percent of exports.
Textile imports have exhibited consecutive drops over the 2004 to 2008 period reflecting, in part, consecutive declines in the ADM for textile products. This was largely the result of the decline in demand from the apparel industry which is the largest downstream market for textile products in Canada and, as is the case in the US, declining demand from other downstream industries. The US continues to be Canada's largest textile supplier accounting for slightly over half of all textile imports, followed by China (16.1 percent of imports).
Positive developments in the textile industry include a slight rise of the manufacturing intensity ratio of 0.6 percent per year (compound average annual growth rate - CAAGR ) between 2004 and 2008, despite a very slight decline in 2007-2008. This ratio measures GDP as a percentage of total shipments and indicates that the products this industry produces have an increasingly higher value-added composition. In addition, labour productivity also grew overall between 2004 and 2008 by 5.1 percent annually (CAAGR), with a particularly strong increase of 18.2 percent between 2007-2008.
Major Issues:
The industry's drive to sustained international competitiveness depends on securing new export markets and shifting production increasingly to high value-added textiles. High-performance textiles opportunities are available in agro textiles, building textiles, geotextiles, home textiles, industrial textiles, medical textiles, transportation textiles, ecotextiles, packaging textiles, protection textiles and sports textiles.
Despite indications that many of the economies throughout the world have experienced recent improvements, a lack of consumer confidence, persistent unemployment, and mixed economic forecasts will likely contribute to a subdued textiles market, particularly in the US, in the balance of 2009 and through 2010, thereby negatively impacting Canadian exports.
The increase in the price of raw materials, coupled with a decline in the accessibility of raw materials in North America, is an ongoing issue for Canadian textile manufacturers.
Associations:
Textile industry organizations include:
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