Textiles & apparel industry production to increase again

21 May '11

2 min read

Despite a strong dollar, manufacturing industries covered in the Spring 2011 edition of the Canadian Industrial Profile- such as electrical equipment, fabricated metals, and machinery - can expect continued growth in production and profits this year.

Published by The Conference Board of Canada in association with Business Development Bank of Canada, the Canadian Industrial service provides a five-year (2011-2015) production, revenue, cost and profitability forecast. In addition to Electrical Equipment, Fabricated Metal Products, and Machinery Manufacturing, the Spring 2011 outlook has forecasts for Oil and Gas Support Activities, Professional Services and Textiles and Apparel Manufacturing.

"The reasons for optimism in these industries include a rebound in demand in the construction and broader manufacturing sectors, as well as a revival in American, European and Asian export markets," said Michael Burt, Associate Director, Industrial Economic Trends. "On the downside, the strong dollar poses a threat to industries that depend on exports for growth. This is especially true in some of the manufacturing industries covered in the Spring 2011 outlook, which are largely composed of smaller firms that need to continually invest to compete."

"Corporate profits are also rising and this signals an increased willingness by businesses to spend on professional services," said Jérôme Nycz, Senior Vice President, Strategy and Corporate development. "The strongest performing segment of this industry is likely to be architectural and engineering services, as the pace of non-residential construction activity accelerates and high commodity prices drive investments. Information like this should help businesses with their planning."

Textiles and Apparel

After two years of losses, the textiles and apparel industry is expected to post a modest profit of $13 million in 2011. Production, which grew last year for the first time since 2000, will increase again in 2011. Canadian demand has been rising since 2009, and exports are expected to increase for the second consecutive year.

Conference Board of Canada

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