As the US textile industry continues to grow, the Canadian industry will struggle further
New York, NY (PRWEB) October 16, 2014
The Textile Mills industry has continued its decades-long decline over the past five years. The Great Recession and ensuing slow recovery heightened consumers' price sensitivity, which further entrenched preferences for low-cost apparel manufactured abroad; distant apparel manufacturers are unlikely to source their textiles from Canada, decreasing demand for industry products. Additionally, appreciation of the Canadian dollar against other currencies negatively impacted technical and home furnishing textile sales, potential growth segments that also declined due to foreign competition. According to IBISWorld Industry Analyst Britanny Carter, “these trends are anticipated to reduce revenue during the five years to 2014.” While strong depreciation of the Canadian dollar is projected to slightly boost imports over 2014, revenue is nonetheless anticipated to decline as per capita disposable income growth slows.
Technical and home furnishing textiles remain a promising opportunity for Canadian manufacturers to stem declines amid heightened foreign competition. Technical textiles require well-funded research and development (R&D) programs alongside advanced production techniques, and home furnishing textiles can be produced entirely through highly automated processes. Both conditions reduce the competitive advantage of producers located in countries with low labour costs. However, US companies have capitalized on many of these opportunities and limited growth for Canadian textile manufacturers. As a result, the US textile industry's rebounding growth has come partly at the expense of its Canadian counterpart.
During the next five years, revenue losses are forecast to decelerate. The dollar is expected to appreciate at a slower rate than the US dollar, making this industry's products more price-competitive with US technical and home furnishing textiles. However, the recent and significant investments in R&D and automated machinery by US companies will sustain their competitive advantage for many textiles in their home and international markets. “Chinese imports will continue to grow at a fast pace as China's rising labour costs encourage investment in automation for technical textile and home furnishing textile production,” says Carter. Moreover, downstream demand from Canadian apparel manufacturers will continue contracting, further reducing the market for industry goods.
For more information, visit IBISWorld’s Textile Mills in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Textile Mills industry comprises a variety of textile manufacturers. Industry operators engage in one or more of the following activities: spinning yarn from natural or synthetic fibres; manufacturing knit, woven or nonwoven fabrics; and finishing and coating textile products. This report does not include carpet nor rug mills.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.