The industry's apparent recovery is not projected to last through the next five years
Los Angeles, CA (PRWEB) May 31, 2013
A high level of imports characterizes the Men's and Boys' Apparel Manufacturing industry. Apparel imports tend to be cheaper than domestically made goods because operators in foreign countries benefit from a relatively low cost of labour. As a result, imported clothing is more attractive to downstream wholesalers and retailers, and poses a competitive threat to domestic manufacturers. Over the five years to 2013, the appreciation of the Canadian dollar has made imports even more inexpensive domestically, causing imports to grow. According to IBISWorld Industry analyst Nikoleta Panteva, “domestic operators have suffered from the heightened competition, experiencing revenue declines averaging 7.5% per year since 2008.” The recession, which reduced consumers' disposable incomes, exacerbated the industry's decline by weakening the downstream demand for apparel. Industry revenue experienced double-digit declines in 2008 and 2010, as a result. As conditions improve in 2013, IBISWorld anticipates that revenue will rise slightly, growing 0.3% during the year to $920.7 million.
However, the industry's apparent recovery is not projected to last through the five years to 2018. “Rising imports will continue to define the industry, intensifying as the domestic currency strengthens further over the next five years,” says Panteva. Imports' share of domestic demand is expected to rise. As a result, industry revenue is forecast to fall to a historical low. The economic recovery domestically and globally will offset declines in the next five years, barring the industry from the double-digit drops experienced during the past five years.
Market share concentration in the Men's and Boys' Apparel Manufacturing industry in Canada is low. Concentration has increased slightly in the past five years, as large companies have relied on their size and scope to gain a more significant share of the market. Still, the industry remains fragmented; companies tend to focus on niche products and markets as a way to establish their position in this largely outsourced industry.
For more information, visit IBISWorld’s Men's & Boys' Apparel Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures men's and boys' apparel from purchased fabrics.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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