Textiles and Clothing Cluster - Communauté métropolitaine de
Transcription
Textiles and Clothing Cluster - Communauté métropolitaine de
Textiles and Clothing Cluster October 2004 Textiles and Clothing Cluster Fabric and Products Clothing and Fashion #XGENCRCTVKEKRCVKQPFG /KPKUVpTGFGU#HHCKTGUOWPKEKRCNGUGVFGU4oIKQPU /KPKUVpTGFW&oXGNQRRGOGPVoEQPQOKSWGFGN¨+PPQXCVKQPGVFGN¨'ZRQTVCVKQP ISBN ISBN2-923013-31-X 2-923013-25-5 (French (French edition edition ISBN ISBN 2-923013-30-1) 2-923013-24-7 ) Legal March 2005 2005 Legal deposit deposit:: March Biblliothèque nationale du Québec Québec Bibliothèque nationale du National Library of Canada National library Canada All rights reserved for all countries. All rights reserved for all countries. The content may not be copied in any way or translated in whole or in part The content may not be copied in any way or translated in whole or in part without the permission of the without the permission of the Communauté Communauté métropolitaine de Montréal. métropolitaine de Montréal Note to the reader Through its Economic Development Plan, the Communauté métropolitaine de Montréal (CMM), has adopted a competitiveness strategy centred on dynamic and innovative business clusters. In the fall 2003, the CMM launched a cluster identification program for metropolitan Montreal. This marked the first phase of a process leading to the development and launch of an integrated economic development and innovation strategy. For each of the sectors studied, the CMM wishes to join forces with all the territorial bodies and economic stakeholders concerned. It means to concentrate its efforts on its own role of planning and coordination and does not intend to take the place of existing players and decision-makers in the field, whose role it is to agree on a development plan under the supervision of a relay organization representing their sector. This document is divided into two distinct sections: • The first section presents a configuration of the Textiles and Clothing Cluster • The second section groups together the ideas of the main players of that particular cluster and their thoughts on future development. The cluster configuration was based on documentary research confirmed by stakeholders in the cluster itself. Comments were then made by industry officials in the ministries concerned. This first section describes the value chain of the cluster and goes on to identify the organizations or infrastructure contributing to its development. Finally, as economic development transcends administrative or political borders, potential links with other regions of Quebec are indicated, taking into account the niches of excellence developed by certain regions under the ACCORD (Action concertée régionale de développement) program. While the first section of the document is inherently factual, the second is more subjective, since it reflects the perceptions of the main players in each cluster. These thoughts were gathered in the strictest confidence so as to produce a maximum amount of data. They are focused on two main themes, the state of relational assets and growth strategies. Since we know that relationships between stakeholders are the first source of innovation, it is necessary to identify the relational flow between the various components of the cluster. In the same way, in order to set priorities, we need to know which strategies for growth are favoured by the players in the field. This document is thus intended as a catalyst for priority actions aiming to energize the strategic process of the cluster and to give direction to its innovative thrust. The process will be carried out in a spirit of openness and dialogue which will eventually enable the Montreal metropolitan area to assert its distinctive capabilities among the world’s most innovative and prosperous cities. Michel Lefèvre Consultant – Economic Development Communauté métropolitaine de Montréal Textiles and Clothing • Services 7 A Competition Cluster Fabric and Products / Necessary Adaptation 16 Industrial Chain Raw Materials 18 Converting and Finishing 22 Textile Materials 20 Textile Products 23 Research 27 Structuring Organizations 30 Financing 28 Consultants 31 Training 29 Configuration Development Factors Clothing and Fashion / Montréal, Fashion Capital 33 Industrial Chain Clothing Manufacture 35 Related Sectors 37 Leather and Fur 36 Fashion and Distribution 38 Research, Training 44 Agencies and Promotion 46 Financing, Associations 45 Technical Textiles 49 Development Factors Assessment and Outlook Increasing Complexity 48 Interregional Links 54 Elsewhere in Quebec Perceptions Strategic Elements 59 Challenges of Globalization Relational Assets 64 Breaking Down Barriers Avenues for Growth 68 Two Segments, Two Speeds Appendices Sources 72 Individuals Consulted 73 Credits 74 Textiles and Clothing • A Competition Cluster There are several reasons why the Textiles and Clothing cluster can be considered as a competition cluster. First is the significance of this sector within the manufacturing industry of the Montreal metropolitan area. It accounts for close to 40,000 manufacturing jobs, around 20% of the total for Greater Montreal. It is therefore one of the largest manufacturing sectors in the metropolitan region. It should also be noted that Montreal has the largest concentration of jobs in textile and clothing in Canada and one of the largest in North America. No less than 35% of all jobs in Canada’s textile and clothing industry are situated on CMM territory. Montreal is even considered to be the third largest centre for the clothing industry in North America, after Los Angeles and New York. Fierce competition It is important to underline that what sets the Textiles and Clothing cluster apart from the other competition clusters on CMM territory is the level of competition on the world market. In a cluster such as Aerospace, local aircraft manufacturers only have three or four serious international competitors. In Textiles and Clothing, there are many competitors. Practically every country has developed a competitive industry in this field. Furthermore, since these sectors are labour-intensive, countries whose labour costs are lower are at a clear advantage. China’s recent signing of the WTO agreements and the gradual breakdown of economic barriers have had a considerable impact on the local textile industry. Price competition is no longer even an option for local manufacturers, who must increasingly turn towards research, design and the integration of new technologies. Under-estimated potential Nevertheless, just at the time when this cluster is being completely restructured and is in need of new investment, the economic decision-makers seem to be turning their backs on it. Its potential is under-estimated both in the Montreal metropolitan region and province-wide. With the economic growth of the 1990s, attributed primarily to the new economy, traditional industries such as Textiles and Clothing have been relegated to secondary importance. Despite the negative indicators, however, these industries also experienced considerable growth during the 1990s, buoyed mainly by the explosion of exports to the United States. General disdain for the sector is a significant factor hampering its development. This attitude has led to a loss of interest not only among investors, but also among workers, who prefer to reorient towards other more valued sectors, which causes hiring problems. Considering the widespread nature of its processes and the diversity of its products, the Textiles and Clothing cluster is also one of the most complex manufacturing sectors. Although the clothing sector is the textile industry’s biggest consumer, it only accounts for 35% of production. The remaining 65% is used by some 150 other sectors and subsectors, including automobiles, health and safety, construction, plastics, mining, fishing, forests, and leisure. This increasingly wide diversity of outlets is even generating problems relating to sectoral classification. Textiles and Clothing • Towards technical outlets The Textiles and Clothing cluster is very well structured. Its industrial chain encompasses all the stages of production, from raw materials to technical outlets. Raw materials represent the initial branch of the cluster structure. The extraction of raw materials is thus the first stage in textile manufacture. Primary and secondary transformation are performed in textile materials mills which often also carry out converting and finishing activities. There are three types of finished products in the cluster. First, there are the textile products such as carpets, rugs, curtains, sheets, cloth bags, burlap and other products. Then there is clothing such as hosiery, socks and knitted items, men’s, women’s and children’s wear, baby clothes and technical-use clothes for work or sport. This industrial chain also comprises two parallel sectors, leather and fur, as well as related products which include perfume, cosmetics, jewellery and gold and silver. Finally, there are the technical outlets, which offer bright prospects for the future. They include twelve distinct sectors in activities as varied as agriculture, fishery, environmental protection, building and construction, professional and sports clothing, geotextiles, filtration systems, household products, health and medicine, transportation material, ecological products, safety material, packaging materials and sports equipment. Towards large-scale customization The promotion and distribution chain plays a critical role in this cluster, particularly in clothes marketing. Major retailers are increasingly becoming order originators. They have therefore acquired a certain amount of power over the cluster’s industrial chain. And electronic commerce is gaining ground, which is tending to favour large-scale customization over mass production. Since the Textiles and Clothing cluster has been established for a long time, its development factors are more structured. It includes an impressive number of networks and associations; however, negative perceptions of the cluster have weakened these factors considerably. Today, research and training centres find it hard to renew their client base, and financing is increasingly difficult to obtain. Textiles and Clothing • Textiles and Clothing • Fabric and Products Sub-cluster Children’s Vêtem Celontthseesnfants Shoes Women’s ntth s efe VêtemCelo smmes uu FoF rrrusres Men’s enlotsthheosmmes VêtemC LeCauth ire srs FaésfihléiosndS e hmoowdse D GrB ou ssrleaptoile Prpinretisnsgion Im NonwNoovnentisFsaébsrics ss ibrraele FM ibirneesra ml iF né Tra SdaeloF na s,irs veenntsts em éavnédnE SC aclosthenBategxstile EmBbrroodideerirey KnTirtw oa ice tsr Féibtirqeuses FS ibyrn etshseytincth M gdeling Ao de A mgaencies ioontsioannd mro ProP otm A g ed t vpeurbtilsicin ité W Ghrooslessisatleesrs Promotion and Distribution Chain Clothing Accessories SVpêetceim aleiznetd s hleissés spCéloctia CuRrtia dienasu/xS , lhinegeets Cnodauticntgion E WoveTnisFsaébsrics VFeibgreetsabvléegFéitbarle ess Clothing and Fashion Sub-cluster C Taaprpise, tcsa/rR peutgtess Textile Products D Teyienitnugre Converting and Finishing s ils ExC peorntss-ucltoannste Industry Chain inegnt innacnecm na FiF YarnsFailé nsd eTthfrie lsads Textile Materials FTorraminaitniogn Development Factors Loécdaia l ires Interm Intelrom eu dxiaries ca BBuâiltdim inegn/t, Ccoonnssttrruuccttiioonn stare, TrLaannsdpo/ rA t itre/rrS ee oratarittiiomne aTérraienns,pm rnéadtiioaniraels InInteterm iInternmaetidoinaariuexs PPearfrufummess, / sm cC osom éteiqtiucess RDeéttaailie llarsnts Jewellery / Bijouterie, Goo ldrfaènvd ilver reS rie Related Sectors Sports and É quipement Recsrepaotriotsn eEtqluoiipsm irsent EPnrvoitreocntm ioenndtael ncnteiomnent l’enPvriroote HT oeuxsteilh eo s ld deTemxatiilseosn giyegnieènaend HyH ine etMmeéddiceince PePrsrootneacltiaonnd PpreorpseorntynePsroettebciteionns ShoCehsa/uC ssloutrheisn,g vêtements FFiltilrtaratitoionn/, Celettaonyiangge n ab ckaalla gg inegs EPm Agricu turriceu/ltFuorere, stry Alg fore/ sFtiesrhiee,ripeêsche Technical textiles FeassihginondeDe D msoigdne Geo eo xttielexstila en sd Gté Civeilt Egnégniineeceivriinl g Asssso occiia attiio on nss A Textiles and Clothing braelses lF FAibnrim niim esaa Raw Materials Research Comppetitive cluster Employment1 by Borough and City — Textile Mills Montreal Island – East End Rivière-des-Prairies/Pointe-auxTrembles/Montréal-Est Anjou Montréal-Nord Saint-Léonard 935 385 265 115 170 Montreal Island – Central Core Mercier/Hochelaga-Maisonneuve Ahuntsic/Cartierville Outremont Plateau Mont-Royal Rosemont/Petite-Patrie Ville-Marie Villeray/Saint-Michel/Parc-Extension Southwest Côte-des-Neiges/Notre-Dame-de-Grâce 3,290 115 1,215 30 275 295 105 620 525 110 Montreal Island – West End Côte-Saint-Luc/Hampstead/MontrealWest Saint-Laurent 1,185 140 10 1,035 Montreal Island – South West Lachine LaSalle Verdun 270 180 50 40 Montreal – West Island Dollard-des-Ormeaux/Roxboro Dorval/L’Île-Dorval Pointe-Claire Kirkland 145 25 10 100 10 Montreal Island Laurentians Boisbriand Mirabel Saint-Eustache Saint-Colomban (outside the CMM) Saint-Jérôme (outside the CMM) 295 10 10 35 10 240 Lanaudière Mascouche Terrebonne 30 15 20 North Shore 325 Laval 105 Montérégie – South Shore Boucherville Brossard Chambly Delson Longueuil Saint-Hubert 285 10 20 10 10 205 20 Montreal Metropolitan Area 6,540 Quebec 15,480 Canada 25,185 5,825 1. Individuals 15 years of age or older who have a regular workplace or who work from home. People who have no fixed address are not included. N.B.: Figures were rounded to the closest multiple of 5; they may therefore not add up exactly to the sum of the components. Source: Statistics Canada, Employment by Place of Work, 2001 Census – Figures on Textile Mills represent NAICS code 313. Textiles and Clothing •10 Employment1 by Borough and City — Textile Products Mills Montreal Island – East End Rivière-des-Prairies/Pointe-auxTrembles/Montréal-Est Anjou Montréal-Nord Saint-Léonard Montreal Island – Central Core Mercier/Hochelaga-Maisonneuve Ahuntsic/Cartierville Outremont Plateau Mont-Royal Rosemont/Petite-Patrie Ville-Marie Villeray/Saint-Michel/Parc-Extension Sud-Ouest Côte-des-Neiges/Notre-Dame-de-Grâce 775 120 340 40 275 1,815 95 730 15 190 210 40 270 210 55 Montreal Island – West End Mont-Royal Côte-Saint-Luc/Hampstead/MontrealWest Saint-Laurent 595 235 10 Montreal Island – South West Lachine LaSalle Verdun 145 75 60 10 Montreal – West Island Dollard-des-Ormeaux/Roxboro Pointe-Claire Kirkland Beaconsfield/Baie-d’Urfé 150 20 45 75 10 Montreal Island 350 Laurentians Blainville Boisbriand Sainte-Thérèse Saint-Eustache Saint-Jérôme (outside the CMM) 80 15 10 30 15 20 Lanaudière Mascouche Terrebonne 65 15 55 North Shore 145 Laval 135 Montérégie – South Shore Beloeil Boucherville Brossard Carignan Léry L’Ile-Perrot Longueuil St-Bruno-de-Montarville Saint-Hubert Saint-Mathieu-de-Beloeil Varennes 275 40 30 45 20 10 10 75 10 35 15 10 Montreal Metropolitan Area 4,035 Quebec 8,410 Canada 20,610 3,480 1. Individuals 15 years of age or older who have a regular workplace or who work from home. People who have no fixed address are not included. N.B.: Figures were rounded to the closest multiple of 5; they may therefore not add up exactly to the sum of the components. Source: Statistics Canada, Employment by Place of Work, 2001 Census – Figures on Textile Products Mills represent NAICS code 314. Textiles and Clothing •11 Employment1 by Borough and City — Clothes Manufacturing Montreal Island – East End Rivière-des-Prairies/Pointe-auxTrembles/Montréal-Est Anjou Montréal-Nord Saint-Léonard Montreal Island – Central Core Mercier/Hochelaga-Maisonneuve Ahuntsic/Cartierville Outremont Plateau Mont-Royal Rosemont/Petite-Patrie Ville-Marie Villeray/Saint-Michel/Parc-Extension Sud-Ouest Westmount Côte-des-Neiges/Notre-Dame-de-Grâce Montreal Island – West End Mont-Royal Côte-Saint-Luc/Hampstead/MontrealWest Saint-Laurent 3,715 410 280 1,315 1,710 26,380 295 8,450 60 3,020 3,945 1,395 7,915 270 35 985 2,545 550 45 1,950 Montreal Island – South West Lachine LaSalle Verdun 360 180 145 35 Montreal – West Island Dollard-des-Ormeaux/Roxboro Dorval/L’Ile Dorval Pointe-Claire Kirkland Beaconsfield/Baie-d’Urfé L’Ile Bizard/Ste-Geneviève/Ste-Anne-deBellevue Pierrefonds/Senneville 535 125 205 100 10 20 Montreal Island Laurentians Blainville Boisbriand Bois-des-Filion Deux-Montagnes Mirabel Oka Pointe-Calumet Rosemère Sainte-Anne-des-Plaines Sainte-Marthe-sur-le-Lac Sainte-Thérèse Saint-Eustache Saint-Jérôme (outside the CMM) 15 60 33,525 1,185 20 420 15 10 80 10 10 10 130 10 240 50 165 Lanaudière Charlemagne L’Assomption Mascouche Repentigny Terrebonne Lavaltrie (outside the CMM) 290 10 20 60 55 140 10 North Shore 1,465 Laval 990 Montérégie – South Shore Beauharnois Beloeil Boucherville Brossard Carignan Chambly Châteauguay Delson Greenfield Park La Prairie LeMoyne Longueuil L’Ile-Cadieux Mercier Mont-Saint-Hilaire Richelieu Saint-Amable Saint-Constant Sainte-Catherine Sainte-Julie Saint-Hubert Saint-Lambert Saint-Mathias-sur-Richelieu Saint-Mathieu-de-Beloeil Saint-Philippe Varennes Vaudreuil-Dorion 1,195 25 15 85 275 10 135 60 10 40 25 10 140 10 15 10 35 20 15 10 35 135 40 10 35 10 10 10 Montreal Metropolitan Area 37,185 Quebec 56,995 Canada 99,175 1. Individuals 15 years of age or older who have a regular workplace or who work from home. People who have no fixed address are not included. N.B.: Figures were rounded to the closest multiple of 5; they may therefore not add up exactly to the sum of the components. Source: Statistics Canada, Employment by Place of Work, 2001 Census – Figures on Clothing represent NAICS code 315. Textiles and Clothing •12 Employment1 by Borough and City — Leather Products Montreal Island – East End Rivière-des-Prairies/Pointe-auxTrembles/Montréal-Est Anjou Montréal-Nord Saint-Léonard Montreal Island – Central Core Mercier/ Hochelaga-Maisonneuve Ahuntsic/Cartierville Plateau Mont-Royal Rosemont/Petite-Patrie Ville-Marie Villeray/Saint-Michel/Parc-Extension Sud-Ouest Côte-des-Neiges/Notre-Dame-de-Grâce Montreal Island – West End Mont-Royal Saint-Laurent 395 40 235 45 75 1,020 40 145 180 260 110 245 10 30 495 225 260 Montreal Island – South West Lachine LaSalle Verdun 65 15 35 15 Montreal – West Island Dorval/L’Île-Dorval 10 10 Montreal Island Laurentians Blainville Sainte-Thérèse Saint-Placide 40 15 10 10 Lanaudière L’Assomption Repentigny 50 40 10 North Shore 90 Laval 70 Montérégie – South Shore Boucherville Brossard Chambly Otterburn Park St-Basile-le-Grand Sainte-Julie Saint-Hubert Saint-Lazare Varennes 145 10 20 10 10 20 10 10 10 45 Montreal Metropolitan Area 2,270 Quebec 4,895 Canada 9,855 1,975 1. Individuals 15 years of age or older who have a regular workplace or who work from home. People who have no fixed address are not included. N.B.: Figures were rounded to the closest multiple of 5; they may therefore not add up exactly to the sum of the components. Source: Statistics Canada, Employment by Place of Work, 2001 Census – Figures on Leather Products represent NAICS code 316. Textiles and Clothing •13 Configuration Textiles and Clothing •14 Sub-Cluster Fabrics and Products Textiles and Clothing •15 Production Chain Fabrics and Products / Necessary Adaptation At the end of the 19th century, only the forestry industry provided more manufacturing jobs in Quebec than the textile industry. In 1960 there were still 42,000 jobs in this industry, making it the third largest employer in the manufacturing sector. These companies, and indeed the manufacturing sector as a whole, were hit hard, however, by two major recessions, one in the 1980s and another in the 1990s. We should not lose sight of the fact that, over the years, this industry has played a supporting role for several other industrial or manufacturing sectors, which has made it vulnerable to all the economic slowdowns affecting those sectors. Despite these structural and cyclical adjustments, Quebec still leads the rest of Canada in primary textiles. In 1999, Statistics Canada counted twice the number of textile mills in Quebec (212) than in Ontario (110) and almost double the number of jobs, with 16,192 in Quebec compared to 8,514 in Ontario. But the picture is not so rosy for the Fabrics and Products sub-cluster, as part of the production is concentrated in groups that are reaching maturity, such as knitted fabrics, greige fabrics and basic yarns, all victims of delocalization. Proportionately, Quebec’s industry today appears more vulnerable to world competition than that of Ontario or the United States. Increasingly, however, we are seeing improved balance in production, and the gradual move towards technical applications will no doubt enable the industry, if it continues the current integration process, to find new business opportunities with good prospects for the future. The textile industry comprises several small and medium-sized businesses involved in specialized production for a wide variety of industrial and commercial markets in Canada and abroad. In its 2003 industry profile report, the Ministry of Economic and Regional Development and Research (MDERR) states that 60% of the 212 textile mills counted in Quebec in 1999 employ fewer than 49 people, while 78% employ fewer than 100. Conversely, mills with over 100 employees (22%) account for 68% of Quebec’s production, and those with 200 employees or more achieve the highest productivity levels. The textile industry in Quebec is concentrated primarily in the regions of Montreal and Montérégie, with 34% and 24% of the province’s textile production respectively in 1998, the only year with any statistics for this category. With regard to employment, these two regions together account for 60% of jobs in the sector. Montreal dominates the textile materials and textile products group, with over 34% and almost 32% of production respectively. From a human resources standpoint, these figures represent close to 38% of employees for the textile materials mills and more than 43% of employees for the textile products mills. Montérégie follows, with 24.4% of dispatches from textile materials mills. The Laval region is home to five textile mills and six textile products facilities respectively, while the Laurentians area has four textile mills and the Laurentides area four textile products facilities. The knitwear sector is largely concentrated in Montreal. It comprises three segments: knitted fabrics, household articles, and dyeing and finishing. Textiles and Clothing •16 Industrial Chain Textiles and Clothing •17 / Industrial Chain Fabric and Products Raw Materials Upstream from the textile industry are the producers of natural and synthetic fibres. Natural fibre producers work mainly in agricultural industries across the world as breeders of sheep, lambs, goats, rabbits, lamas, etc., or as producers of cotton plants or similar shrubs. Synthetic fibre producers are manufacturers of chemical products used to create artificial and manmade fibres and threads. New Zealand, Australia and Canada are recognized producers of sheep’s wool and lamb’s wool. Various countries in Europe, Asia and South America have earned worldwide reputations as breeders of angora rabbits, Merino rabbits, angora (mohair) goats, cashmere goats, silk worms, wild lamas (alpaga), etc. One interesting initiative worth mentioning is the Natural Fibre Centre set up in January 2001 by Alberta’s Olds College Centre for Innovation, in partnership with the Canadian government. The fibre centre offers research and testing services for the creation of high-quality value-added products. Fibres for spinning and weaving do not come exclusively from the animal world; they can also be of plant origin (cotton, aloe, hemp, flax, burlap, sisal, kapok, ramie, etc.) and mineral origin (asbestos, glass, carbon, aramid, etc.). The latter are often referred to as technical fibres, not to be confused with the expression “technical textiles” which means something quite different today. With respect to cotton plant production, India is renowned for its short staple cotton, America for its medium staple cotton and Egypt for its long staple cotton. Fibre flax is cultivated chiefly in the European Union (France, Belgium and the Netherlands) and Eastern Europe; burlap and kenaf, mainly in Bangladesh, India and Nepal; and sisal, in South Africa, South America and Asia. The rise of natural fibres Canada, thanks to the western provinces, is the world’s largest producer (40% of the market) and exporter of flax, mainly of the seed used for nutritional and ecological purposes. This type of flax has completely different applications than fibre flax. Production of industrial hemp, halted in 1938, was only legalized by the Canadian government in 1998. Nevertheless, there are over 600 cellulose fibre producers in the world today, and Canada is a net importer. Natural fibres were long associated with garment making, but this is no longer the case, and an increasing number of opportunities are arising in technical markets. The world car industry, for instance, has increased its use of natural fibres five-fold in the last five years. The market for cellulose fibres such as hemp and flax (short fibres) is in full expansion and new technical outlets are emerging: sturdier composite panels for cars, and insulation and construction materials that are twice as resistant as wood and cement. Specialized papers, technical filters and healthcare products are also very stable markets. Although it represents only 20% of the textile materials market at present, the whole area of natural fibres remains an extremely important part of the industry, which is not really catalogued on an industrial basis, nor structured according to a scientific and technical model. Like flax and hemp, these fibres will be used for an increasing number of technical applications in the next few years, as extrusion technology becomes more sophisticated. The growth of this market will be Textiles and Clothing •18 / Industrial Chain Fabric and Products stimulated not only by economic factors but also primarily by environmental concerns. Demand for natural materials, particularly for construction and interior decorating, is in net progression throughout Europe and America, and the medium-term outlook is especially optimistic. Dominance of synthetic fibres Currently representing some 80% of the textile market, synthetic and artificial fibres have taken such a large place in practically all the textile product ranges due to their excellent value and their numerous specific properties. Synthetic fibres like polyester (Dacron, Tergal, etc.), acrylic, nylon and more recent innovations such as polypropylene and Spandex are derivatives of petroleum, natural gas and coal. Artificial fibres such as viscose, acetate and others come from natural raw materials (cellulose, casein, algae, etc.). Developed during the second half of the last century, synthetic fibres are a steadily expanding global market. Demand for polyester, for example, is rising in all parts of the world due to its multiple uses: reinforcement of tires or asphalt, seat belts, construction panels, etc. New synthetic fibres, especially the more high-tech types, are constantly being developed. By blending different fibres, researchers can obtain materials that combine all the sought-after characteristics (shine or silky aspect) or specific properties (thermal qualities, instant drying). Research is abundant in this field. The most recent technological innovations are a result of new approaches in yarn manufacturing, which make it possible to produce an infinite palette of textures and finishes for weaving. Other research focuses on developing specific treatments for fibres (grafting with ionization, microencapsulation, chemical additives, etc.), which give the fibres remarkable properties (iridescent, anti-odour, anti-UV effect, etc.). Genetically engineered fibres are starting to be produced by laboratories (spider silk cloning). Colours without dyes are also created using an entirely new procedure (laser engraving). The production of synthetic and artificial fibres is a key activity that should form an integral part of the textile industry. It is currently classified in the chemicals industry. When compiling the list of artificial and synthetic fibres and filaments (NAICS 325220) included in the chemicals industry, it is apparent that of the 10 mills in this category, only 2 small facilities, Plastifil in Trois-Rivières (20 employees) and MXT in Montreal (8 employees), differ by not being directly linked to the textile industry. The eight others form part of textile companies which have integrated fibre production into their main activities, which range from spinning (Bermatex or Textiles Du-Re) to the production of fabrics (Tricot Richelieu) or of non-woven textiles (Matador Convertisseur in Montreal), to the manufacture of carpets (Beaulieu Canada, Tapis Venture or Poly Extrusion). Textiles and Clothing •19 / Industrial Chain Fabric and Products Textile Materials The textiles materials sector encompasses all the first and second transformation industries. There are around 8,000 textile materials manufacturing jobs in the Montreal metropolitan area, which represents half of the total number of jobs in textile mills in Quebec. These jobs are spread through approximately one hundred companies, most of which employ fewer than 50 people. Mills employing over 100 people sometimes account for most of the production and also have greater productivity levels. During this stage, the raw materials are converted to manufactured or raw material products. Raw materials make up the greater part of Quebec textile manufacturers’ operating costs. Also, the weakness of domestic production obliges the industry to import almost all its fibres. It is also important to remember that the industry in Quebec is strictly controlled by foreign players, principally in the United States and Europe. In 2003, deliveries of textile materials for the whole of Quebec amounted to $1.8 billion and exports to nearly $1 billion. Almost 90% of exports are to the United States. Imports of textile materials to the domestic market were $1.1 billion in 2003, reflecting a decline begun five years previously. The broad-woven fabrics sub-sector is the biggest in terms of deliveries. The sectors of fibres, threads, spun yarns and knitwear are equal in size. The sub-sectors of narrow and non-woven fabrics are more modest, but offer the best prospects for the future, since they are linked to new and technical textiles. Spun yarns and threads — Quebec’s spinning mills mainly use manmade fibres and mixtures and produce a considerable quantity of specialized yarns, which is a more secure market. The preferred niches are knitwear, which grew rapidly in the 1990s, and apparel; however, the spinning mills’ activities have been slowing since the start of the 2000s. There are five spinning mills on CMM territory, all located in Montreal. They are Filature HenriBourassa, belonging to Gildan, (135 employees), Cansew (85 employees) and American & Efird (32 employees). The two others, Fils Kay and Neeltex, are very small and employ fewer than 20 people. Broad-woven fabrics — Quebec’s textile mills mainly produce fabrics from natural fibres and chemical staple fibres. The sector is also well positioned in the production of manmade continuous filament fabrics and technical-use fabrics. Production is partly focused on the clothing, household items and upholstery markets, and partly on rapidly expanding industrial markets such as stationary, transportation, construction, and filtration. In this category, Asten Johnson, which has two mills, one in Montreal (80 employees) and the other in Salaberry-de-Valleyfield (115 employees), is a world leader in paper machine clothing and filtering equipment. Narrow fabrics —Quebec’s mills are extremely dynamic on both the domestic and foreign markets, thanks to production geared towards industrial manmade fibre narrow goods (straps for transport, safety belts, camping items, etc.). Many products fall into the wide category of technical-use textiles. Textiles and Clothing •20 / Industrial Chain Fabric and Products There are around twenty mills on greater Montreal territory. Some of the largest are the zip manufacturer YKK with 175 employees followed by Calko (125 employees), Canzip (85 employees) and Block (36 employees), all four located in Montreal. Two others are situated in Saint-Léonard – Dominion Corde (62 employees) and United Trims (32 employees). Caristrap in Laval and Rubans Hubscher in Lachine each employ 45 people. Non-woven fabrics — This is the principal sector for the development of technical-use textiles, which efficiently combine manmade, paper and textile technologies, and clearly have huge growth potential. Quebec’s textile and non-woven fabric mills ship mostly needle felts and other products to industrial sectors such as construction, civil engineering (geotextiles), horticulture, and sports and leisure. They also produce fabrics made of non-woven staple fibres and cotton wadding for hygiene and healthcare sectors, industrial linens, and filtration products. There are only six non-woven fabric mills on greater Montreal territory, three of which are located in Montreal. They are Matador Convertisseurs (73 employees), Fibrofil (24 employees) and Fibres Wadco (5 employees). Fibres Jasztex has two mills, one in Pointe-Claire (95 employees) and the other in Saint-Léonard (32 employees). Finally, Soleno Textiles Techniques (20 employee) is located in Laval. Knitwear —Quebec is Canada’s clear leader in this field, accounting for over 75% of production nationwide. Against all odds, production in Quebec has increased by more than 40% between 1993 and 2000. After peaking in 1997, Canada’s apparent domestic market stabilized for three years at around $835 million. It started to lose ground only in 2000 and 2001, losing 18.5% of its value. Production by Quebec mills fell by 8% in 2001, a probable result of the impact of stricter trade regulations in the United States, the same factor that hit the yarns and threads group. For at least two years still, imports are expected to rise and exports are likely to decline, continuing the trends that started to appear in 2001 and 2002. It is highly likely that the textile mills in Quebec will continue to lose ground in their domestic and foreign markets; however, the signing of the Free Trade Area of the Americas (FTAA) Agreement could significantly change the situation in overseas markets. Knitwear is essentially knitted fabrics that can be categorized into four groups: lace and tulle, plush and velvet, warp-knit fabric (swimwear, lingerie) and circular-knit stitched fabric (teeshirts, polo-shirts, etc.). Almost all Quebec’s production is destined for the clothing and high-tech refined sports apparel sector. The production of circular knits, single knits (jersey) or complex (interlock) is prevalent in Quebec. There are almost 30 knitting mills in Montreal. Vêtements de sport Gildan is the largest with 375 employees in Saint-Laurent, followed closely by Nalpac (320 employees) and Paris Star (300 employees). Two other mills employ more than 100 people – Manoir (190) and Tricots Liesse (105). All the others have fewer than 50 employees, except Agmont with 65. Textiles and Clothing •21 / Industrial Chain Fabric and Products Converting and Finishing The converting and finishing processes are closely linked to the production of textile materials. These activities are often even directly integrated in the production activities of the textile manufacturers. They represent only a small part of all textile production, both for delivery value and jobs – around 15%. In 2003, manufacturing deliveries stood at $306 million, $11 million of which were exported. The conversion process often obliges companies to invest in the prevention and management of environmental risks due to effluents of textile dyes and finishes. Finishing — Financial results for the “finishing” group zigzagged their way through the period from 1993-1999. This group ended 1999 at its lowest threshold ($9.5 million) for the entire period, marking a decline of 33%. The apparent Canadian market ended this period on a very positive note, having grown by around 54%. Quebec contributed for approximately 61% of the Canadian market, but this proportion is low compared to over 72% of the market achieved in 1994. Three trends are hitting Quebec’s finishing plants hard: 1) the large concentration of clothing chains in Toronto instead of Montreal; 2) the tightening of US trade laws; and 3) the vertical integration of fabric producers, who are integrating finishing into their daily activities. Exports are weak and will stay that way. The future will lie in developing greater capacity to meet the needs of the domestic market or to evolve towards more specialized niches. The finishing plants mainly serve the companies that manufacture and distribute yarns and knits for the clothing sector. In Quebec they use mostly “conventional” methods as opposed to more advanced techniques (plasma, polymers, etc.). The largest plants in the Montreal area are Doubletex (388 employees), Teinturiers Concorde (110 employees) and Teinture Agmont (100 employees). Coating — The very small number of mills in Quebec (fewer than 10) that make up this group enjoyed strong production growth (82%) during 1993-1999. It increased its share of the domestic market and slightly increased exports. There was a cyclic fall in deliveries of around 17% in 2001. Exports started to pick up again in 2002, and this growth should remain steady in the short term. The demand for these products remains very high in many industrial sectors; however, Quebec’s production remains relatively weak in the circumstances and leaves too much room for imports, which have remained stable since 2000. This is another sector which concerns technical-use textiles. The mills in this group are primarily involved in the coating and impregnation of fabrics. Growth lies primarily in rubberized and plasticized fabrics. The main applications involve the emergency services, work apparel, transportation equipment, construction and health care sectors. Textiles and Clothing •22 / Industrial Chain Fabric and Products Textile Products Textile products are located downstream of the primary textiles cluster. They make up the final transformation of textile materials and products for the consumer market, either the domestic market, as is the case for carpets, rugs, curtains or household textiles, or for the industrial or leisure and sports markets, such as burlap, bags and other cloth products. A whole range of articles designed to meet consumer or trade needs are included in this category. In 2003, manufacturing deliveries of textile products stood at $900 million for the whole of Quebec and exports were close to $275 million. As for textile materials, almost 90% of exports are shipped to the United States. Imports of textile materials on the domestic market stood at $393 million in 2003. The steady rise of these imports during the last few years has increased pressure on domestic manufacturers. Textile product mills account for approximately 4,000 manufacturing jobs in the Montreal metropolitan area. This figure represents close to 60% of total jobs in textile products mills in Quebec. There are thought to be around 150 companies on CMM territory whose production activities are linked to textile products. Some have links with other industrial sectors. Nearly 25% of Quebec’s textile product mills are located in the Montérégie administrative region. Even though a part of Montérégie is included in CMM territory, there are some large centres of activity which do not form part of the CMM, such as Granby, Cowansville and SaintHyacinthe. Textile product mills are categorized into two major groups: household textiles and other textile products. Included in the first category are carpet and rug manufacturers and curtain and household linen manufacturers (including bedding). In the second there are, on the one hand, manufacturers of cloth bags and burlap articles and, on the other, a heterogeneous class including all the products that fall outside all other categories. Carpets and rugs — Production in Quebec has been steadily rising since 1993, aside from a pause in 2000, as has the apparent Canadian market, which grew a little over 5% in 2001 compared to 2000. Quebec exports increased at a steady rate, reaching a peak of $77.3 million in 2001, while Canadian exports slowed somewhat. On the other hand, imports to Quebec and Canada increased significantly. Quebec’s mills accounted for over 30% of the apparent Canadian market in 2001. Taking into account the maintenance of trends in Quebec exports and Canadian imports, Quebec’s mills were able to maintain their overall position in 2002 on the domestic market. Quebec’s few carpet and rug mills are vertically integrated, from the manufacture of artificial and synthetic fibres and filaments to the finished product. It is an extremely concentrated sector, resulting from mergers and acquisitions. Some companies specialize in woven carpets for the transportation materials industry. Most carpet and rug production is concentrated in Montérégie, especially in Acton Vale, home to the largest Canadian manufacturer, la Compagnie Beaulieu, which runs five mills in Quebec. This Canadian giant, subsidiary of the Beaulieu of America group, whose headquarters are in Dalton, Georgia, was incorporated in the 1990s when it acquired Tapis Coronet of Farnham Textiles and Clothing •23 / Industrial Chain Fabric and Products and Tapis Peerless of Acton Vale. The company employs over 1,600 employees and its business volume exceeds CAD$300 million. More specifically, on Montreal metropolitan territory there is RCR International (250 employees) in Boucherville, which makes carpets and rugs as a secondary production to its wide range of plastic and metal products. There are also two companies in Saint-Jean-sur-Richelieu, very near the outer limits of CMM territory: Tapis I.B.E (120 employees) and Carpettes Lanart (60 employees). The other companies on CMM territory employ fewer than 20 people. Curtains and household textiles — The mills of this group in Quebec were victims of very slow growth (only 13%) between 1993 and 1999. Exports to the United States, on the other hand, were extremely high, increasing almost fourfold during the same period. This strong growth was not repeated on the domestic market, however, where the group lost quite a lot of ground in Canada as a whole due to a high volume of imports since 1997. Production fell sharply by 18% in 2001 over the previous year. With imports to Canada increasing by another $50 million in 2002, the Quebec group is likely to lose ground on the Canadian stage. The only encouraging factor is that exports surged by $25 million in 2002, a rise of 39%, the highest in the subsector of textile products mills. Quebec’s mills are strongly concentrated on the production of bedding and furnishing accessories, with a small breakthrough into garden furniture. Very little production is for industrial use. Only two players dominate this sector. They are Décors Commonwealth in Montreal (360 employees) and Industries Beco in Anjou (330 employees). They are followed by three medium-sized mills employing between 100 and 200 people. Cloth bags and burlap — Production increased by some 31% between 1993 and 1999, but fell back by 6% in 2001 compared to 2000. Exports from Quebec doubled, while imports to Canada did the same. Quebec’s share of the Canadian market was 10 percentage points lower in 2001 than in 1993 and this trend is likely to continue for 2002. Exports from Quebec remain strong, however. After having more than doubled (168%) between 1993 and 1999, they soared by 38% in 2001. But these gains do not offset the decline in other Canadian market segments. Aside from their large production of awnings and temporary garages, Quebec mills make numerous textile products for technical use: tarpaulins, canvas roofs and sails for boats, jeep doors, belts, harnesses, canvas lifting material, protective padding, filters, tents, sealed airlock systems, safety clothing, working aprons, armoured vests, therapeutic articles, salvage booms, blanket insulation for concrete curing and for blasting, welding screens, protective covers, etc. Evidently, the list is long and varied. Other products include bags for practical or sporting use such as shipping, travel, school, laundry or shopping bags, medical bags for bandages and dressings, backpacks, filter bags, etc. This group also includes a good number of technical-use products such as tarpaulins, tents and protective covers. This group does not include only cottage industries that manufacture (sew) awnings, as is often widely believed. There are many cottage industries but they do not create many jobs. A more precise segmentation of the burlap sector and the following sector relating to other textile products mills might lead to a better analysis. Some of the more noteworthy companies in this group are Canning (55 employees) in Laval, Emballages Workman (95 employees) in Saint-Laurent, Tentes Fiesta (57 employees) in Lachine and Gazebo Penguin (52 employees) in Montreal. All the others employ fewer than 50 people. Textiles and Clothing •24 / Industrial Chain Fabric and Products All other products — Analysis of this group is of little use, as there is no strong link between the products manufactured. The important thing to note is that the group is making strong inroads into the US market along with all the other groups, with a 175% surge in exports. Another point worth mentioning is that the production value of this group is now almost double that of the cloth bags and burlap group, whereas in 1993 burlap group production was the higher of the two. The products in this group do not fall into easily identifiable categories. They range from coffin linings to promotional material, embroidery to cleaning wipes, animal accessories to toiletries, furniture felt to breastfeeding pads, hoses for artificial snow to padding cord, electrical wire insulating twine to fire hoses, flags to incontinence articles, theatre curtains to hammocks, and certainly many others. By and large, the textile mills and textile product mills in Quebec recorded growth of 39% and 25% respectively during the period between 1993 and 1999. And despite a slight decline in activity for the former at the start of the current decade, they have been more successful in many cases than their North American counterparts. This group tends to be overlooked, on the pretext that it is a catchall category. It does, however, include several technical-use textile products for commerce and industry (transport, health, leisure, rubbers, plastics, etc.). Unfortunately they are lost among many promotional fabric products and various embroidery items. Textile waste transformation also belongs to this group. Textiles and Clothing •25 Development Factors Textiles and Clothing •26 Development Factors Fabrics and Products / Research All the textile industry companies, especially those in the technical textiles sector, can benefit from the expertise and work carried out by the Centre for Textile Technologies (CTT Group), an organization in Saint-Hyacinthe, whose mission is to answer industry needs and encourage the progress of textile technologies in the textile industry. It comprises four divisions: the Centre for Textile Technologies (CTT), the Geosynthetic Technology Centre (SAGEOS), the SAGEOS Laboratories and the Textile Journal. The staff at the centre includes researchers, engineers and technicians, who are assisted by textile companies who need to design increasingly highperformance products with considerable added value. CTT Group’s main commitments lie in the following areas: plasma for surface treatments, nanotechnology: functionalization of fibre surfaces; and finally smart textiles, a sector in which research avenues have been defined but for which no practical applications exist yet. CTT Group is also planning to become involved in about a dozen other areas, such as protection (which already accounts for 50% of its activities), industrial applications, medicine, agriculture, valueadded apparel, sports, geotextiles, environment, construction, the home (value-added textiles), packaging and the car industry. With regard to protection, the CTT participated in establishing the Chaire de recherche en matériaux et équipements de protection utilisés en santé et en sécurité au travail (Research Chair in materials and equipment for protection in healthcare and work safety). Created by the École de technologie supérieure (ÉTS), this Chair enables the development of new knowledge in the spheres of health and safety. It is the result of collaboration between the ÉTS and the Institut de recherche Robert-Sauvé en santé et sécurité au travail (IRSST) (Robert-Sauvé research institute for health and safety in the workplace). By joining the expertise of research centres with those of protection equipment manufacturers, the Chair has been able to direct its research towards improving the performance of protective clothing against cuts, perforations, damage due to industrial solvents, fire and extreme heat, with the aim of optimizing flexibility and efficiency. The Chair also carries out research into problems relating to the ageing and degrading of materials used in fall protection equipment for work at height. CTT Group also works with the Centre des Technologies des Systèmes Ordinés (computerized systems technology centre) and the Centre de géomatique du Québec (Quebec geomatics centre) in a techno-commercial alliance. The goal of the project, entitled Le Regroupement technologique pour les textiles intelligents (Technology Group for Smart Textiles) is to develop and promote the use of technologies and applications for the incorporation of miniaturized electronic components (with tracking functions, among others), into textiles and apparel. By combining the strengths of the textile sector with the processes of miniaturizing electronic circuits, and by banking on telecommunications and geomatics, the CTT aims to accelerate the already advanced research into smart textiles and in doing so exploit new market opportunities. Various research work is being led at the École Polytechnique de Montréal, where students can follow specialized courses on materials. The Université de Sherbrooke also houses several researchers working in industrial textiles. The work of the Cégep de Saint-Hyacinthe should also be underlined. This institution works hand in hand with CTT Group, and the two establishments constitute the hub of textile research in Quebec. Textiles and Clothing •27 Development As a final note, it should be remembered that industrial innovation is not only reliant on R&D activities. According to the Canadian Textiles Institute, with respect to large investments in new technologies, professional training, industrial design and engineering, and electronic business are all important foundations for innovation and competitiveness. Fabrics and Products / The textile industry is the leading manufacturing industry with respect to automated handling and quality control technologies. It is in second position, behind paper and related products mills, for computer-integrated production. Only the drinks industry leads textiles for the number of businesses using inter-company electronic communications technology. On this same subject, the Canadian Textiles Institute highlights the results of a study on advanced technologies in Canadian manufacturing published by Statistics Canada. The textile industry is one of the five industries, along with drinks, paper and related products, primary metals and electronic and electrical products, that have integrated functional technologies into their activities the most quickly and efficiently. Financing As far as financing is concerned, companies in the textile sector can count primarily on the support of two government partners: the (MDERR) in Quebec, and Industry Canada at the federal level. Sponsored by Industry Canada, the Canadian Apparel and Textile Industries Program (CATIP), administered regionally by Canada Economic Development in Quebec, focuses on programs and procedures that will help textile and clothing industries adjust to new competition demands. In this way, it aims to improve new technology-linked practices that reinforce marketing strategies, identify potential markets, diversify products and will contribute to the growth of electronic business capacities. Canadian textile companies can also obtain financial assistance to hire graduates from junior colleges (CÉGEPS), colleges, or universities. The Perspectives textiles program offers salary grants of up to $13,000 per eligible graduate. The companies can also sign agreements for the financing of different projects and, according to the nature of the products, other organizations and ministries can provide financial support. It should be noted, however, that financing has become one of the main problems of small and medium-sized businesses. Banks are often their only source of financing. Several organizations in Quebec, such as the Caisse de dépôt et de placement, the FTQ Solidarity Fund and the Société générale de financement (SGF), could help back their development, but the high level of perceived risk and financial sector bias prevent many projects from getting off the ground. Textiles and Clothing •28 Development Fabrics and Products / Training The textile industry in Quebec benefits from training programs at secondary, college and university level. The Cégep de Saint-Hyacinthe is a pioneer in this field. It is the only establishment to offer a complete program of study leading to a college diploma in textiles. Four regional school boards offer vocational study programs leading to vocational diplomas, to train general operators in textile production. The school boards involved are those of Beauce-Etchemin, des Chênes, from the Sherbrooke region and Val-des-Cerfs. The Comité sectoriel de main-d’œuvre de l’industrie textile (textile industry workforce sector committee) also strives to develop training programs in the workplace, including a program for spinning machine operators. As for university training, the Cégep de Saint-Hyacinthe formed a partnership in 2002 with the Université du Québec à Trois-Rivières with a view to offering a certificate in textile studies. Several businesses recruit graduates of technical programs with a concentration in mechanics or heavy machinery operation. They also look to engineering students. This can be explained by the fact that specialization and production needs vary greatly from one company to another. Some prefer, for example, to hire mechanics students and to complete their training within the company. As there exists no bachelor’s degree in textiles, textile firms often approach engineering graduates. For example, in the Greater Montreal Area, the university degree courses linked to textile industry are the Bachelor’s in Mechanical Engineering, the Certificate in Quality Management and Assurance and the Certificate in Industrial Production, all three offered by the École de technologie supérieure (ÉTS). The Ecole Polytechnique de Montréal also offers a bachelor’s program in mechanical engineering, providing relevant training for the textile industry. The Comité sectoriel de la main-d’œuvre de l’industrie textile also plays a leading role in manpower planning and development. It is a joint organization, financed entirely by EmploiQuébec, whose mandate is to develop human resources and a culture of continuing education in the textile companies of Quebec, and to promote the textile sector and its careers. All the textile sector committee’s decisions are made in agreement with business leaders, training institutions, the Ministry of Education and external training providers. There is also the Textiles Human Resources Council (THRC) whose goals are essentially the same as those of the sector committee. It was created from an independent, non-profit alliance between unions and management. The Council develops innovative training and education solutions to respond to established and emerging human resources needs. It also offers skills improvement programs to meet industry learning needs. Textiles and Clothing •29 Development Fabrics and Products / Structuring Organizations In Quebec, the Centre for Textile Technologies and the Geosynthetic Technology Centre (CTT Group) is the industry’s primary structuring organization. As well as carrying out research in technical textiles, it offers commercial services to help mobilize the industry and its partner organizations. In this way, it is able to organize trade missions and fairs abroad and interact directly with Quebec companies. Every year, CTT Group, in collaboration with the Textile Federation of Canada and other Canadian textile associations, organize the HIGHTEX Conference & Trade Show for business leaders and industry players. In 2003, the event was held in Saint-Hyacinthe on the theme of protective fibres and textiles. In 2004, the conference was held at the Montreal Science Centre on the theme of technical textiles. Another key textile industry association is the Canadian Textiles Institute (CTI), which lobbies governments on behalf of all Canadian textile companies. The CTI organizes an annual trade show on technical textiles. In 2004 the event focused on military textiles and protective equipment. The textile industry in Quebec can also count on the support of the Canadian Association of Textile Colourists and Chemists - Quebec section, the Association des textiles des Cantons de l’Est and the Textile Federation of Canada, which operates within the CTT Group in SaintHyacinthe. Recently, in response to an initiative of the MDERR, the SGF and Hydro-Québec, partners from industry, research and training set up an Issue Table for the Quebec textile industry with the mission to improve networking and information transfer within the industry and to strengthen avenues for future growth, especially in technical textiles. It will also promote the textiles sector in an attempt to counter its prevailing negative image. Nineteen people currently make up the Table, including seven industrialists. SAGEOS and its partners invite the professional engineering community to its annual Forum on Geosynthetics, the only event of its kind in Canada relating to the geosynthetics industry. The textile industry workforce sector committee and the THRC are also two associations that help industry networking. The THRC organizes the annual Futur-Tex conference to discuss exemplary human resources practices and technical developments to overcome labour force challenges. Over 200 representatives of textile firms, unions, suppliers and related businesses attend this national event annually. Specialized unions — Textile sector workers are represented by three main unions: the Fédération des syndicats du textile et du vêtement (CSD), the Syndicat du vêtement, textile et autres industries (SVTI), an FTQ affiliate, and the Fédération du commerce, secteur textile, vêtement, chaussure (TVC), an affiliate of the CSN. Textiles and Clothing •30 Development Fabrics and Products / Consultants Companies in the Greater Montreal Area can rely on the services of three large textile consulting firms: Groupe textile (consulting firm), Fintex Mécaniques et Procédés and Guilbault et Associés, in Saint-Bruno, offering advice on planning, research and consumer and industry marketing strategies. The Canadian Technology Network (CTN) is a nationwide network of experts which includes advisors from the National Research Council and Canada Economic Development (CED), among others. Through this network, SMBs have access to competent resources for all their questions of a technical or commercial nature. A joint initiative between CED and the Ordre des ingénieurs du Québec (OIQ – Order of Quebec Engineers) allows manufacturing SMBs access to the Operation SMB program to help them evaluate and improve their technological capacity and benefit from consulting and accompanying services provided by human resources experts skilled in technology. The network of 21 institutes and federal organizations dedicated to research and development in Quebec share their scientific knowledge with the SMBs and work with them towards the transfer of this knowledge. In collaboration with CED, the Association de la recherche industrielle du Québec (ADRIQ) makes available to industrial SMBs a network of advisors in each region of Quebec, with a view to structuring technological innovation efforts and facilitating access to tax credits for R&D. The Institut de développement de produits (IDP) offers SMBs development and skills transfer services (workshops, seminars, conferences), as well as accompanying and networking. These services are offered with the aim of developing, distributing and establishing efficient practices in product development so as to improve SMBs’ productivity. There is also the Centre spécialisé de technologie physique du Québec (CSTPQ), which focuses on the development of high-tech products and production procedures. The organization also offers consulting services to companies and a laboratory specialized in the development of computer integrated manufacturing. Textiles and Clothing •31 Sub-cluster Clothing and Fashion Textiles and Clothing •32 Industrial Chain Fabrics and Products / Montreal, the Fashion Capital According to the MDERR, the Montreal metropolitan area is home to the third largest clothing industry in North America, behind Los Angeles and New York. Approximately 30,000 people are employed in this industry, almost 10% of Montreal’s entire manufacturing sector. Of this number, 85% are involved in production, 8% in administration and 7% in design and marketing. In 2002, in Quebec, 71% of jobs in clothing manufacturing were held by women. The average hourly wage was $11.01 (excluding overtime), $5.80 lower than the average hourly wage for the whole of the manufacturing sector. It is an ageing and relatively uneducated workforce. Immigrants, especially in Montreal, occupy the majority of jobs relating to production. For the whole of Quebec in 2002, manufacturing shipments of apparel stood at $3.9 billion and exports at close to $1.8 billion. Approximately 96% of exports were for the US market. Imports of clothes to the domestic market have been steadily rising for the last few years and domestic manufacturers are suffering from increased foreign competition. While clothing manufacturers have to deal with competition from emerging countries, the fashion sector seems to be concentrated in more developed countries. Thus, Montreal’s fashion and design industry in is in direct competition with that of New York, Milan, Paris, and even Toronto. Fashion and design are the mainsprings of the whole clothing industry. Its jobs are also the least likely to be affected by industry delocalization. Design and promotion account for around 7% of all manufacturing jobs relating to clothing production. There are also many jobs in retail commerce related to fashion design. Textiles and Clothing •33 Industrial Chain Textiles and Clothing •34 Industrial Chain Clothing and Fashion / Clothing Manufacture As with the manufacture of textile products for domestic, sporting or industrial use, clothing manufacture is located downstream in the textile cluster. It consists in transforming textile materials to finished clothing products for consumer or industrial and institutional markets. This sub-cluster is focused on three major markets: men and boys, women and girls, and children and babies. In addition to the clothes produced for these three main markets, it also produces gloves, hosiery and socks, sweaters and knitted shirts, lingerie and underwear, beach wear and professional wear. It also produces leather and fur items which will be the subject of a separate section. Another characteristic of the clothing industry is that it is subdivided into two manufacturing groups, those that make and sell their own products and those that manufacture as subcontractors for order originators. The latter is known as custom manufacture. Numerous strategies are followed in the industry. Some companies prefer to concentrate on a single activity – design, for example – and outsource the mass production. Others make certain types of more personalized products themselves and outsource the less distinctive ones. The subcontractors can therefore work for big designers who market their own labels and for large retail chains that are developing their own brands. In some cases, manufacturers and subcontractors can even do the distribution themselves or have it done under contract. One thing remains certain: an increasing number of large integrated groups are being formed. Most of the 500 companies of the clothing and fashion sub-cluster make clothing for women and girls. A significant number of large companies, however, offer products for both women and men. Generally speaking, the large firms are spread more widely across CMM territory than the small companies. The biggest concentration of apparel manufacturers is situated in the Cité de la mode (Chabanel district). Women’s and girls’ wear — This is the largest sector. It comprises almost 200 companies, several of which also make men’s and boys’ wear. A large proportion are small companies. Only about twenty have over 100 employees. There is also a marked concentration of companies in this sub-sector in the area of the Cité de la mode. Underwear and swimwear manufacturers make up a large proportion of the biggest firms in this sector. Les Maillots Baltex (1,000 employees), Lingerie Château (665 employees), Canadelle (600 employees) and Christina Amérique (550 employees) are some of the major employers. There are also large manufacturers of women’s and girls’ wear other than swimwear, such as Ballin (500 employees), Samuelsohn (350 employees), and Jeno Neuman (370 employees). Men’s and boys’ wear — There are a just over a hundred or so companies manufacturing men’s and boys’ wear in the Montreal metropolitan area – almost half the number of companies making women’s and girls’ wear. Nevertheless, the number of employees in each sub-sector is relatively similar, which would indicate that there are more large companies in the men’s and boys’ wear sub-sector. Textiles and Clothing •35 Industrial Chain Clothing and Fashion / The company Vêtement Peerless, with its some 2,000 employees, is a prime example. Other large companies in the sub-sector are Tricot Main, Vêtements de sport Gildan, la Cie manufacturière Jack Spratt, Lingerie Château, Ballin, Corporation de vêtements SFI, Vêtements S & F (Canada) ltée and Samuelson. It should be noted that the companies in this sub-sector are less concentrated around the Cité de la mode than those in the women’s and girls’ wear sub-sector. Children’s wear and other specialized clothing — In this sub-sector there are about a hundred companies manufacturing primarily baby clothes, technical sports apparel, technical work apparel and specialized clothing for hospital use. There are very few large companies – barely a dozen. Since they are each so different from one another, they are not concentrated in one area but are spread across CMM territory. Babies’ wear — Around twenty companies, small and medium-sized, specialize in manufacturing clothes for babies. This market represents around 3% of the clothing market in Quebec. Hosiery, socks and knitted clothes — This sub-sector includes about thirty companies inside the Montreal metropolitan area. Some of them also have activities in other sectors. A dozen companies employ more than 100 people. Some of the largest hosiery and sock manufacturers are Manufacturier de Bas Iris, with nearly 1,000 employees, Canadelle, Doris Hosiery Mills Canada Ltd., and The Lamour Hosiery Mfg Inc. In knitted clothing, one of the largest companies is Manufacture les Tricots dorés. Around a dozen companies in this sub-sector are located in the vicinity of the Cité de la mode. Other specialized clothes — Sport Maska Inc, hockey apparel manufacturer, and the Filmar Ski Corporation, ski clothing manufacturer, are two of the largest specialist sports clothing companies. North Safety Products Ltd. is one of the biggest technical work apparel companies. Courey Inc. and Med-i-pant are key producers of absorbent clothing and hospital wear. Clothing Accessories This sub-sector includes mainly companies producing leather goods (bags, belts, braces and shoes). They will be described later in this document. Leather and Fur Leather and fur form a sub-cluster parallel to the textile cluster. Unlike clothing manufacturers, leather and fur manufacturers’ input is not derived from textile materials. Instead, their supplies come directly from raw materials, i.e. animal pelt. They make finished products for retail sale. Trapping activities make up the majority of the workforce in this sector. It is estimated there are 8,000 or so trappers in Quebec, but naturally they are not all present in the Montreal metropolitan area! Trappers are seasonal and temporary workers and their activities are strictly regulated. Around 2 million fur skins are produced on average each year in Canada, half of which come from fur farms. Textiles and Clothing •36 Industrial Chain The leather and fur industries use the same raw materials. Tanning and finishing activities are, however, specific to each industry, so the sub-cluster is divided into two sub-sectors: fur products and leather goods. Clothing and Fashion / Leather goods — There are only a few tanning companies in the metropolitan region. Tanning activities are often integrated with the production of leather goods. There are thought to be around forty leather products companies in the Montreal area. Their main products are belts, straps, various types of cases and wallets, handbags and harnesses. Most of these products also come under the heading of clothing accessories. Fur products — The fur trade is without doubt one of the oldest trading activities in Canada, along with agriculture and fishing, and Canada is still a world leader in this realm. No less than 80% of Canada’s fur industry is situated in the Montreal metropolitan area, accounting for close to 2,000 manufacturing jobs. There are about a hundred companies located on CMM territory, mainly small businesses, concentrated in the fur district to the west of Bleury Street, between De Maisonneuve Boulevard and Sainte-Catherine Street, in Montreal. Their activities are highly integrated, ranging from finishing to the making and retailing of fur clothing. Shoes — Shoemakers also fall into the category of leather goods manufacturers. However, the majority of these manufacturers in the Montreal metropolitan area specialize in making boots, mainly with manmade materials. There are about fifteen shoe and boot makers in the metropolitan region. Related Sectors Perfume and cosmetics — The cosmetics industry is part of the personal care products sector, or Toilet Preparation Manufacturing sector (NAICS 325620). It includes companies manufacturing three types of products: personal hygiene products, perfumes and cosmetics. Shampoos, hair-care, skin-care and bath products are all part of the personal hygiene products family. Perfumes include all types of perfumes, toilet waters, and cologne waters. Cosmetics include makeup and nail care products. Quebec is home to around sixty cosmetics and beauty care product manufacturers. The vast majority, around fifty companies, have their headquarters in Montreal and surrounding areas. Several are large clients of the United States and their products are world-renowned. By and large it is the European and US multinationals that set the fashions and the rules in this sub-cluster. They dominate a significant share of the sector in Quebec, the rest being managed by Quebec-owned SMBs. Textiles and Clothing •37 Industrial Chain Clothing and Fashion / The main players in personal care products in Quebec are L’Oréal Canada, Avon and Lise Watier. There are around fifteen contract manufacturers in the province, including Laboratoire Cosmépro, Laboratoire Du-Var Inc., Dermolab Cosmetics Ltd and MPL Cosmetics. Some of them have their own manufacturing labels. There are over 130 distributors of personal care products in Quebec. The leading international manufacturers, including L’Oréal, Avon and Gillette, have the lion’s share of the market. Several small companies share the remaining share and work, in many cases, for large multinationals. It is important to note that no studies exist that chart the current situation in Montreal’s personal care products industry. According to the Canadian Cosmetic Association, the only precise data available for the Montreal sector were collected and compiled by companies for marketing reasons and were therefore not made public. Jewellery, Gold and Silver —Quebec is home to a hundred or so jewellery makers. Their interests are represented by the Quebec Jewellers’ Corporation, which comprises more than 250 associate retail members and over 250 participating industrial members (manufacturers, wholesalers, retailers, jewellers and clock makers by trade, and craftsmen). Fashion and Distribution On the fashion scene, business is focused more on the design and promotion of clothes than on their manufacture. It could be said that this sector spans both the clothing manufacturing industry and retail commerce. It is also increasingly concentrated in the hands of a limited number of large international stakeholders. There are three types of major players and order originators. First, the designers, who concentrate on designing and marketing clothes and accessories under their own labels, and outsource the production. Second, the manufacturers, whose primary business is to design, manufacture and market clothes and accessories under their own labels or on behalf of others (including the designers). Finally, the big retailers, who manage their own network of specialized stores and develop their own brands. The singularity of designers is to grant licenses to large manufacturers to produce and even distribute their clothes and accessories. The large manufacturers also develop their own brand names and sometimes manage a network of stores. Some also act as manufacturers of exclusive (private) labels, which, although they remain the property of the group, are limited to exclusive distribution in selected department stores or chains. Fashion Design The principal activity in the development of the clothing manufacturing sector is without a doubt fashion design. Quebec companies dedicate on average 3% of their labour force to this activity, which is integrated primarily in clothes manufacturing: in Montreal, design activities are mainly Textiles and Clothing •38 Industrial Chain Clothing and Fashion / done within clothing mills. An increasing number of retailers, however, are becoming involved in design; they are creating their own lines of clothing and contracting out the manufacture of these. The major labels, also key players on the international scene, do only the design and promotion of selected lines of clothing and outsource their manufacture to subcontractors. These companies are almost all multinationals with headquarters abroad. Insufficient relations between designers and producers is a barrier to the expansion of the Montreal fashion industry. For some, this lack of collaboration can be explained by fundamental differences between the artistic visions of the creators and the more economical and practical standpoint of the producers. The lack of cohesion between the two groups could even be the reason why Quebec’s major labels do not figure on the top international fashion scene. It would appear that manufacturers are focusing their production on major US labels and large retailers rather than developing Quebec labels. Several paths can be explored in an effort to improve collaboration between designers and producers in Montreal. One example of a project along such lines is the Toronto Fashion Incubator, set up by the City of Toronto, whose mandate is to promote and to stimulate the growth of the fashion industry by helping new designers. It nurtures fashion entrepreneurs by analyzing their needs, giving them access to subsidized studios, industrial equipment, showrooms and a resource centre. The City of New York also has such an incubator. There has already been a past attempt to set up a fashion incubator in Montreal, but the project fell through due to lack of funds. Currently, it seems that there is no other viable major project to assist Montreal designers. In addition, there is no association or organized group of designers in Montreal, which makes it more difficult for designers to further their cause when dealing with governments or interest groups. This is a weakness in a crucial sector of Montreal’s fashion industry. The clothing industry today, in all developed countries, relies more than ever on fashion design. In this respect, the Greater Montreal Area, which has no local fashion promotion program, registered a slight reduction in employment levels in the clothing sector from 1991 to 2001, while the Greater Toronto Area, which supports its local designers, maintained positive growth in this sector. Brand names The clothing market is characterized by a surge in the number of brand names or labels, which consumers see as bringing added value to products. Both nationally and internationally, brand names have cornered a large share of the market; in the United States, this share amounts to approximately 30% of wholesale sales in the clothing sector. These labels are also backed by major advertising and promotional campaigns. The smaller companies, which have brand development strategies but tighter advertising budgets, are feeling threatened. While the designer labels attempt to create value by reflecting a certain image or lifestyle, retailers’ private labels are more focused on price. These private brand names are in fact trademarks created for the exclusive needs of a retailer. Some large chains carry their own design department and manufacture their own products or have them made externally. Others buy exclusive clothing ranges designed by manufacturers, to which they add their own logos. This approach, although it reduces manufacturers’ marketing costs, makes suppliers invisible and reduces the available space in-store for the manufacturers’ own brands. Clothes marketed under private labels represent almost 40% of retail sales in Canada. Textiles and Clothing •39 Industrial Chain Clothing and Fashion / Two categories of product Clothing products can be divided into two main categories: basic products and fashion products. Each product is produced and distributed in a particular way. Basic products, for example, are rarely affected by fashion trends and are brought out season after season with little variation. Demand for such products is predictable and enables easier long-term production and distribution planning. Fashion products, on the other hand, vary from one season to the next and involve higher levels of risk. Orders placed for collections are made at specific times of the year, and manufacturers must leave some leeway for clients to reorder stock during the selling season if needed. The lifespan of most of these products ranges from three to six months and is strongly influenced by fashion trends. Convenience, basic or standard products are often made in large quantities, while fashion products rely on the production of short series of differentiated products. For basic products, manufacturers seek to optimize inventory management and cost control, while for fashion products they are increasingly using fashion design in the process of researching and developing products. Retail commerce According to the MDERR, department stores (Sears, The Bay, etc.) and discount stores (WalMart, Zellers, Winners, Croteau, etc.) represent 43.7% of retail commerce in the clothing industry. Clothing store chains (Simons, Fairweather, etc.) make up over one third of the market, while independent clothes retailers (fewer than five stores) only represent 12.5%. The large retailers therefore dominate the entire distribution chain of the apparel industry. More and more, they are imposing their standards and are becoming true order originators. As an additional note, retailers are becoming increasingly integrated in the textiles and apparel production process. They often run their own mills or contract out their own collections for manufacture. They are also producing household textiles such as curtains, carpets, etc. Increased free trade, brought about by the North American Free Trade Agreement (NAFTA), has contributed to important changes in retail commerce, making it easier for large US retailers such as Gap, Costco and Wal-Mart to enter the Quebec market. Their arrival has, on the one hand, led to the closure of a number of retail stores and, on the other hand, created new business opportunities, especially for manufacturers of mass consumer products. At the same time, NAFTA has enabled Quebec retailers such as Le Château, Aldo and Tristan & America to start operating in the United States. These changes have caused a significant rationalization of retail commerce and a high concentration of stakeholders, so that today 16 retailers generate 50% of clothing sales in Canada. The consolidation of the retail industry is expected to continue, which will make the large stakeholders even larger and the small ones even smaller. Electronic commerce The arrival of the Internet is democratizing inter-company trade. Companies can now communicate and make transactions with their business partners online, a secure and costeffective way of enabling them to manage their affairs and their supply and distribution chains more efficiently. It is difficult to anticipate all the effects that electronic commerce will have; Textiles and Clothing •40 Industrial Chain Clothing and Fashion / however, our review of documentation shows that it is a much-discussed topic in the apparel industry. Experts are divided on the real outlook for the development of sales of clothing online. For some, Internet commerce in the clothing sector will always be limited by the fact that it is impossible to try on clothes and by problems with returns and refund guarantees. For others, on the contrary, electronic commerce has great development potential. Online clothes purchases are likely to increase with secure payment methods, the resolving of disputes between distribution networks, and technological advances. Today, however, online sales are made primarily through retailers’ vendor sites and mail-order specialists. Manufacturers are still hesitant about competing with their traditional distribution network by selling directly to consumers. It remains that the arrival of new technologies is causing increased mass personalization. This new phenomenon, which opens up new market opportunities, can be split into three categories: • Firstly, there is personalization whereby the consumer orders a standard product and has it personalized according to his wishes (e.g. having a sweater printed). • Then, there are alterations, where the consumer’s measurements are sent to the manufacturer and each item of clothing is made individually according to these measurements. • Finally, there is design, where the consumer is not only a part of the first two personalization processes, but also participates electronically in the design and colouring of individually produced clothes. Trade fairs and events The fashion sector can count on a number of key showcase events to show off its talents and products. Montreal plays host to the majority of fashion events in Canada, including some that are highly prestigious. Expomode is without doubt Montreal’s biggest fashion event and the largest fashion industry show in Canada. It attracts all the key players in women’s, men’s and children’s fashion, the accessories manufacturers and the designers. The show, held over three days, includes 600 exhibition stands and offers conferences, catwalk shows and presentations by well-known designers. It also attracts some 6,000 buyers. Liaison Mode Montréal organizes the annual Montreal Fashion Week, intended as a springboard for young creators but which also presents established designers. The event features catwalk shows and presents new collections. Also during the week there are various different seminars organized on industry-related themes. Sensation Mode presents each year the Montreal Fashion and Design Festival: four days of shows highlighting the work of around thirty designers and manufacturers. The event takes place on the Saint-Laurent Boulevard and brings together creators, models, musicians and artists producing shows on the theme of innovative design. It takes place during the Canadian Formula 1 Grand Prix festivities. Montreal is also host to the only trade fair for clothing industry suppliers in the country, the National Apparel Technology Show (NATS). This event, organized by the Apparel Manufacturers Institute of Quebec, is a meeting place for sewing companies, manufacturers and major suppliers Textiles and Clothing •41 Industrial Chain Clothing and Fashion / of technology, machinery, accessories, textile and related services. Visitors can participate in conferences and workshops presented by renowned experts. Fur and fashion — The North American Fur and Fashion exhibition in Montreal is the largest trade show in the Canadian fashion industry and the only one in North America specifically devoted to fur and fashion. It is also the fifth largest in the world. This fair is held every year at Place Bonaventure and brings together some 200 exhibitors and 5,000 buyers. Jewellery, gold and silver — The Quebec Jewellers’ Corporation organizes each year Expo Prestige, an exhibition for retail jewellers, offering 250 stands. Cosmetics and perfumes — Montreal is home to two industry events in the personal care products sector: the International Congress of Applied Esthetics, held mid September, and Esthétique SPA International, held end September. Other international fairs related to this sector are held elsewhere in the world, the largest of which is the HBA (Health & Beauty Aids) trade show, held in New York every 18 months. This event attracts more than 500 exhibitors from across the world. Textiles and Clothing •42 Development Factors Textiles and Clothing •43 Development Factors Clothing and Fashion / Research R&D in the clothing sector is not oriented towards new products but towards manufacturing methods and the use of more technical textiles. It is therefore highly dependent on research carried out in the textile materials sector. The Centre de transfert technologique de la mode (Centre of Fashion Technology Transfer), a subsidiary of the LaSalle College Group, is the only establishment to offer research services specifically for the apparel industry. It makes diagnoses of production facilities, establishes new management methods and carries out planning and quality control. It supports companies wishing to improve the quality of their products and productivity to stay competitive at local and international levels. Training There are several vocational, technical or university training schools on CMM territory linked to clothing manufacture. The Compétences 2000 school in Laval, the des Patriotes school in Montérégie and the Métiers des Faubourgs-de-Montréal institute in Montreal all offer programs in this field. LaSalle College and the Cégep Marie-Victorin offer technical programs in fashion design and clothing manufacture. The Cégep du Vieux-Montréal runs several programs in art trades related to the apparel industry. Several private institutes such as the Académie internationale de design et technologie (international design and technology academy) and the Institut supérieur du design de mode (higher institute for fashion design) offer college-level training. The UQAM, along with LaSalle College, offers university programs in fashion styling and design, fashion industry management and fashion marketing. In light of the structural changes expected in the clothing industry, new training needs are very likely to emerge. These could be new training programs for functions directly linked to production delocalization or to improving fast response time. The Apparel Human Resources Council and the Comité sectoriel de main-d’œuvre de l’habillement (clothing industry workforce sector committee) are also two organizations with a mission to develop human resources and support continuing education within clothes manufacturing companies. Their role is to promote the apparel industry and its careers to future workers. Jewellery, gold and silver — Several vocational training programs exist in this field. The Métiers du Sud-Ouest-de-Montréal school offers a vocational diploma (DEP) in jewellery making, and the Cégep du Vieux-Montréal, in conjunction with the École de joaillerie de Montréal, runs a program leading to an attestation of college studies. Textiles and Clothing •44 Development Factors Clothing and Fashion / Financing As far as financing is concerned, textile-sector companies, as mentioned previously, have the support of the Canadian Apparel and Textile Industries Program (CATIP), administered regionally by CED in Quebec. The CATIP focuses on projects and procedures that will help clothing companies adjust to new competition requirements. It aims to strengthen marketing and product diversification strategies, to identify burgeoning markets and to explore electronic business capabilities. Government aid programs also exist for fashion design, such as tax credits and customs duties rebates for designers. To this we can add the numerous modernization and export support programs that fashion entrepreneurs have access to. Many designers apparently do not use the tools at their disposal, however, because they lack the patience, time or training to use them to their advantage. Associations The apparel industry is long-established in the Montreal metropolitan area and benefits from many inter-relationships. There are many national and provincial associations of clothing manufacturers, both for specific areas such as baby clothes and for more general fields. The vast majority of these associations have their offices in Montreal. Four main sector associations cover the apparel industries: the Quebec Clothing Contractors’ Association (AECQ), the Children’s Apparel Manufacturers’ Association (CAMA), the Fur Council of Canada (FCC) and the Apparel Manufacturers Institute of Quebec (AMIQ). The need for consensus in the industry led to the establishment of Liaison Mode Montréal (LMM), whose mission is to combine the efforts of the four associations to promote the whole apparel industry in domestic and foreign markets. There are several other organizations, often with more specific missions, such as the Apparel Human Resources Council, the Comité sectoriel de main-d’œuvre de l’habillement (clothing industry workforce sector committee), the Canadian Fur Trade Development Institute (CFDI), the Canadian Textile and Garment Council, the Centre d’entreprises de mode de Montréal, the Fondation de la mode de Montréal, Liaison mode Montréal, the Association des manufacturiers de vêtements pour hommes (MCMA), Montreal Clothing Contractors Association (MCCA), the Quebec Council of Odd Pants Employers (QCOP), and the Quebec Joint Council (from the Union of Needle Trade and Industrial & Textile Employees). Textiles and Clothing •45 Development Factors Clothing and Fashion / Cosmetics and perfumes — Companies in the personal care products sector are represented by a single association: the Canadian Cosmetic, Toiletry and Fragrance Association (CCTFA), which has over 200 member companies. The CCTFA is located in Mississauga, Ontario. Cluster businesses can also count on the Quebec branch of the Society of Cosmetic Chemists (SCC), whose headquarters are in New York, to defend their interests. Jewellery, gold and silver — This sector is represented by the Quebec Jewellers’ Corporation, comprising jewellery makers and retailers. The Corporation displays its products at Canada’s largest jewellery show, Expo Prestige, held every year at the Palais des congrès in Montréal. Another annual showcase for jewellery and clock makers is the annual Montréal Salon des métiers d’arts (art and craft trade show). Agencies and Promotion There are a number of modeling agencies in the Montreal area, in addition to casting agencies, which also offer television- and film-related services. According to listings in Montreal directories, there are about twenty modeling agencies on the CMM territory. As far as promotions are concerned, Montreal Collections is a promotional banner for Quebec clothing sector exporters in the US market. Created to increase the visibility of clothing products from Quebec, this banner aims to help manufacturers and designers strengthen their presence in this huge market. Textiles and Clothing •46 Assessment and Outlook Textiles and Clothing •47 Assessment and Outlook Increasing Complexity In the past, the textile and apparel industries were rigorously protected by quotas and customs duties. Today, they are being hit head on by market globalization. Even though Quebec businesses have, overall, done well under free trade with the United States, industry players do not necessarily consider the multilateral liberalization of this sector to be beneficial. Competition from emerging countries, whose labour costs are much lower, encourages the industry’s delocalization. Even if it is always to companies’ advantage to keep their development activities (research, design and marketing) at a domestic level, it is likely that a number of them will be tempted to carry out their production in countries with the lowest salaries. During the 1990s, the free trade agreements enabled textile and clothing manufacturers in Quebec to increase their exports to the United States considerably. However, the situation took a turn for the worse at the beginning of the 2000s: not only did the US tighten its protection measures (USTDA 2002), but the Canadian dollar also rose. These two events led to a slowdown in exports. Complete abolition of duties On January 1, 2002, the member countries of the WTO entered the last of four phases dismantling the Multifibres Agreement. This agreement, which protected the markets of industrialized countries against the mass invasion of products from low-cost countries, will be completely abolished on January 1, 2005, eliminating at the same time all the quotas on imports of textile products and apparel. In 2003, Canada decided to accelerate the process in part by doing away with all its customs duties and quotas for 49 low-income countries. Although most of these countries only make up a small part of the world markets, some, like Bangladesh, have highly developed textile and clothing industries, even in technical sectors. China, the world’s leading textile and apparel exporter, which recently joined the WTO, is adding to this threat. Mixed production strategies The textile industry is being badly shaken, but historically it has always shown its ability to adapt; once again, it will have to prove this ability. Inevitably, the industry will need to deal with the growing trend of delocalizing production to low-cost countries. Competition based on price alone will then no longer be enough to keep the industry going. If they are to survive, companies will need to develop mixed production strategies, which will include some local production and some subcontracting abroad. They will have to integrate new technologies in their manufacturing processes. Some of these challenges include adapting to newgeneration pre-production software, adopting just-in-time manufacturing methods, improving methods of analysis and sales forecasts, and setting up ways to optimize localization strategies. The new products must be developed according to well-targeted clienteles. The industry must invest more in developing strong brand names and high value-added products. Textiles and Clothing •48 Assessment and Outlook Job losses are to be expected, especially among low-skilled workers; however, the domestic market will stay competitive in less labour-intensive sectors or those requiring special labour skills, and the proximity of the US market is always an advantage for industry in Montreal. Changes in the clothing sector Traditional roles are also changing in the clothing sector. The large retailers are increasingly dominating the market. They have their own design teams to develop, in whole or in part, exclusive collections sold as private labels. They are thus becoming real order originators in this sector. Some retailers own mills and have their collections manufactured by foreign subcontractors. Conversely, clothing manufacturers are increasingly into retail, and are developing their own distribution networks. Technical Textiles Technical textiles are of paramount importance to the future of the cluster (see following page). Not only is this sector enjoying rapid growth, but it is also the least likely to suffer the adverse effects of globalization. These textiles are better integrated in the rest of the economy and demand for them is wider. They are much less likely to delocalize due to their high use of skilled labour and the importance of their R&D activities. Currently around sixty companies in Quebec are involved entirely or partly in the technical textiles field, and employ over 3,000 people. Their production is estimated at $0.5 billon, or over a quarter of manufacturing deliveries, which represents 40.75% of Canadian production of textiles and non-woven industrial fabrics. Technical textiles represent the cluster’s future. Technical textiles, functional textiles, industrial textiles, smart textiles, geotextiles, engineering textiles and high-tech textiles all describe this cutting-edge sector. Technical textiles come primarily from polymers such as polyester, polypropylene, polyamide (nylon), viscose and even cotton or jute derivatives. It is important to remember that the word ‘technical’ refers more to the know-how and technologies that enable the use of these fibres in new industrial contexts such as aerospace, defence, medicine, health, safety, transportation, construction and leisure. The organizers of the largest world fair on technical textiles, named Techtextil, held each year in Frankfurt, have divided technical textiles into 12 distinct categories. This taxonomy is used widely by many international statistics firms and is often cited in specialized studies: Agrotech — The fishery and agriculture sectors have always used textile materials for preserving, grouping and stocking their products. Nowadays, modern materials are used — especially nonwovens — to improve the strength, lightweight and durability of traditionally used products and for new applications. In this sector, many different applications now make use of new fibres (ropes Textiles and Clothing •49 Assessment and Outlook and nets, for example), and the replacement market is already mature. There are considerable opportunities for specialized applications, however, such as fish farming equipment, and nonwoven textiles in agriculture. Buildtech — In the building and construction industry, new textiles offer benefits with respect to solidity, resilience and flexibility, as well as being lightweight. These modern textiles already complement or replace some traditional materials in permanent constructions. They provide economical solutions today for building temporary or semi-permanent structures. Asian countries, where seismic risk must be taken into consideration in all construction, could make great use of these new textile materials. However, the market seems to be currently very pricesensitive and relatively unstable. Geotech — Geotextile applications represent one of the fastest–growing sectors, if not the fastestgrowing sector, in technical textiles. The North American market is showing signs of maturity, but all the emerging countries, which are currently building their infrastructure, are going to have significant needs in this area. Sporttech — Demand is growing along with a worldwide interest in sport. New textiles are increasingly present in sports equipment (manmade fibres and coating). The need for comfort and safety is encouraging the development of new fibres or new applications for existing materials. It is a promising, although still relatively small market. Indutech — The industrial world already makes extensive use of technical textiles, which are used in making all kinds of conveyor belts and filters, in polishing and cleaning, and in many other processes. Demand is likely to remain high, with a probable increase of more than 4% per year. Medtech — The medical sector, like that of health and hygiene products, is growing strongly, due to two main factors: the economic development of countries which are continuing to catch up with the large industrialized countries, and the ageing of the population in the more industrialized countries, whose health care needs are rising as a result. Included in the medical sector are some extremely specialized applications with high added-value, but they are subject to low volumes. Volumes of hygiene products are higher, but they concern products based on low value non-wovens. Demand should increase in emerging countries, but it appears to be relatively mature in the more industrialized countries, whose growth is not expected to develop strongly over the next few years. Clothtech — Most technical textiles used in the apparel industry (interfacing, sewing threads, wadding, etc.) already require elaborate technology. Clothes manufacturers impose very strict specifications on these textiles. This means that, while the fibres themselves are relatively unsophisticated, their price-volume ratio is one of the highest in the technical textiles sector. It is a market in which the share of non-wovens will grow and which will filled by a growing demand for “high-performance” clothing fabrics. Hometech — Textiles used in home furnishings and furniture have long been made of natural fibres, but manmade textiles are rapidly becoming more popular, and demand is likely to grow further, particularly in non-wovens. Demand is also strong for fireproof or flame retardant textiles. Textiles and Clothing •50 Assessment and Outlook Mobiltech — Transport industry applications have spearheaded the development of technical textiles. Their use in tire cords, flexible hoses and all kinds of belts in cars, boats and aircraft (including exhaust collector actuating sleeves for rockets) is not growing as fast as it used to in more technically advanced countries but is on the rise in the rest of the world. Having become a major part of large-scale markets such as the automobile or aviation sectors, the manufacture of technical textiles for these sectors is now increasingly exposed to economic cycles and erratic consumer trends. Oekotech — Environmental applications sometimes overlap with other sectors, as in the case of filters for effluents or industrial dust. The boundaries are easier to trace when it comes to soil erosion, permanent airtight storage of toxic materials or thermal insulation of buildings. Solving problems relating to recycling and obtaining biodegradable materials are other development channels in the oekotech category. Despite its rapid growth, this category has the smallest volume and value for the whole technical textiles sector. Packtech — Traditional textiles have always been used as packaging materials. Natural fibres such as burlap or cotton are still widely used, but manmade fibres (especially polypropylenes) have all but replaced traditional fibres in industrial usage. A new market has opened up with the manufacture of large flexible containers called Flexible Intermediate Bulk Containers (FIBC), used increasingly for the transhipment of goods in ports, for example. Non-woven textiles are now used in markets until now served by paper only, such as resistant or protective envelopes or food-product packaging. Protech — Technical textile applications in protective clothing (wherever there is a risk of fire, electrocution, or contamination by liquids, gas or bacterial agents) and leisure apparel (for protection, to keep warm/cool, to waterproof/aerate, all with minimal bulk and weight) have offered exceptional market opportunities for a number of years now. Demand should remain steady, particularly in the industrial sector. But the application of advances in sports apparel for extreme conditions to everyday clothing should expand the market even further. Textiles and Clothing •51 Textiles and Clothing •52 Fabric and Products Sub-cluster Women’s ntth s efe VêtemCelo smmes uu FoF rrrusres Men’s enlotsthheosmmes VêtemC LeCauth ire srs FaésfihléiosndS e hmoowdse D Shoes NonwNoovnentisFsaébsrics Miinneerraall F iibbrreess FM ibres miF né rales Tra SdaeloF na s,irs veenntsts em éavnédnE Children’s Vêtem Celontthseesnfants KnTirtw oa ice tsr Féibtirqeuses FS ibyrn etshseytincth M gdeling Ao de A mgaencies Clothing Accessories SVpêetceim aleiznetd s hleissés spCéloctia GrB ou ssrleaptoile Leader ioontsioannd mro ProP otm A g ed t vpeurbtilsicin ité Deficient W Ghrooslessisatleesrs Promotion and Distribution Chain Clothing and Fashion Sub-cluster Prpinretisnsgion Im SC aclosthenBategxstile CuRrtia dienasu/xS , lhinegeets Cnodauticntgion E WoveTnisFsaébsrics VFeibgreetsabvléegFéitbarle ess EmBbrroodideerirey C Taaprpise, tcsa/rR peutgtess Textile Products D Teyienitnugre Converting and Finishing s ils ExC peorntss-ucltoannste Industry Chain inegnt innacnecm na FiF YarnsFailé nsd eTthfrie lsads Textile Materials FTorraminaitniogn Development Factors Competitive Loécdaia l ires Interm Intelrom eu dxiaries ca BBuâiltdim inegn/t, Ccoonnssttrruuccttiioonn stare, TrLaannsdpo/ rA t itre/rrS ee oratarittiiomne aTérraienns,pm Lacking rnéadtiioaniraels InInteterm iInternmaetidoinaariuexs PPearfrufummess, / sm cC osom éteiqtiucess Undetermined RDeéttaailie llarsnts Jewellery / Bijouterie, Goo ldrfaènvd ilver reS rie Related Sectors Sports and É quipement Recsrepaotriotsn eEtqluoiipsm irsent EPnrvoitreocntm ioenndtael ncnteiomnent l’enPvriroote HT oeuxsteilh eo s ld deTemxatiilseosn giyegnieènaend HyH ine etMmeéddiceince PePrsrootneacltiaonnd PpreorpseorntynePsroettebciteionns ShoCehsa/uC ssloutrheisn,g vêtements FFiltilrtaratitoionn/, Celettaonyiangge n ab ckaalla gg inegs EPm Agricu turriceu/ltFuorere, stry Alg fore/ sFtiesrhiee,ripeêsche Technical textiles FeassihginondeDe D msoigdne Geo eo xttielexstila en sd Gté Civeilt Egnégniineeceivriinl g Asssso occiia attiio on nss A Textiles and Clothing braelses lF FAibnrim niim esaa Raw Materials Research Comppetitive cluster Interregional Links Textiles and Clothing •53 Interregional Links Elsewhere in Quebec Once thriving, then declining, the textile sector today has to face major challenges that are forcing it to redefine its role. Unrelenting pressure from countries with lower labour costs is forcing stakeholders to turn increasingly towards niche markets such as technical textiles, whose twelve categories offer many different possibilities for innovation. Although Quebec’s textile industry is concentrated on CMM territory, the rest of the province is home to numerous support bodies in R&D, training, integration of advanced technology and expertise. Montérégie, the other textile champion Around a quarter (24%) of Quebec’s textile production comes from Montérégie, which places this region second in this sector, after Montreal. In fact, the six largest textile companies (over 500 employees) outside the CMM are based in Montérégie. Granby, Cowansville and SaintHyacinthe are the main regional sector hubs. With its 1,550 employees, Beaulieu (Acton Vale) is the leading producer of carpets and rugs in Quebec and the biggest textile manufacturer outside the CMM. The Montérégie region also has many training and research centres. The Val-de-Cerf school board (for the Granby and Cowansville areas) offers a vocational diploma for textile production operators. The Des Patriotes vocational training centre gives training in the fashion industry and the Cégep de Saint-Hyacinthe offers three technical programs linked to textiles: textile production technology and textile production management (continuing education). The Cégep also created CTT Group, which houses the Centre for Textile Technologies, whose mission is to improve productivity, R&D, and knowledge-sharing. In partnership with the Centre géomatique du Québec (Quebec geomatic centre) in Chicoutimi and the Centre des technologies des systèmes ordinés (computerized systems technology centre) in Sainte-Thérèse, the CTT set up the Regroupement technologique pour les textiles intelligents (technology group for smart textiles). This techno-commercial partnership aims at developing, promoting and incorporating technologies and miniature electronic systems applications such as remote transmitters, into textiles. The offices of the Quebec chapter of the Canadian Association of Colourists are in SaintHyacinthe. This organization seeks to increase knowledge on the use of dyes and chemical products in the textile industry, encourage research on chemical methods and on materials, contribute to the spread of knowledge and ideas and back technical training in textile science. Also in Montérégie are consulting firms like Groupe Textile, a Granby-based company whose goal is to be an exchange and advice forum for the textile industry. Quebec City, second fashion podium In 1999, the Chaire pour la santé/sécurité au travail (Chair for health and safety in the workplace) at Université Laval in Quebec City, published a research document entitled “La prise en charge de la sécurité dans les petites enterprises des secteurs de l’habillement et de la fabrication de produits en metal” (‘Taking charge of security in small businesses of the clothing sector and metal products manufacturing sector’). Like Montreal, but on a smaller scale, Quebec City is a choice setting for fashion industry promotion. Every August, the city hosts the “Plein Art” show, Quebec City’s counterpart of the Salon des métiers d’art in Montreal. Textiles and Clothing •54 Interregional Links Specialized training in the Eastern Townships The Eastern Townships are home to the Association des textiles des Cantons de l’Est (Eastern Townships textiles association), part of CTT Group. In addition, the Department of Engineering of the Université de Sherbrooke runs a program in mechanical engineering, useful training for the technical textile industry. Centre-du-Québec banks on technical textiles The presence of promising new companies in applications relating to transportation, sports articles, health and hygiene, construction and civil engineering is moving this region to explore the emerging technical textile market under the Accord program. R&D and investment activities have also intensified during the last few years, signifying that the sector is likely to become stronger in this region. The Accord (Action concertée de coopération régionale de développement) program was created jointly by the Société générale de financement (SGF) and the Ministry of Economic and Regional Development and Research (MDERR). The program aims to establish a regional production system that is competitive in both North American and world markets, by identifying and developing preferred markets of excellence in each region that can become those regions’ mark of distinction. The Des Chênes school board in Drummondville offers vocational training possibilities for textile production operators at its Paul-Rousseau training centre. Chaudière-Appalaches focuses on industrial markets Technical textiles for the industrial market make up the primary production of the companies in the Chaudière-Appalaches region – in sectors as varied as manmade fibres (Filature Lemieux), needle felt, geotextiles, non-wovens (ADS-Texel) and weaving of manmade fibres, as well as wool blankets and fabrics (Victor Innovatex). The Beauce-Etchemins school board offers vocational training in textile production operations. As is the case throughout Quebec, this region suffers from the lack of several links in the textile chain, for example equipment suppliers. Nevertheless, it considers itself a “determining partner” of the Centre-du-Québec region under the Accord program in the technical textiles market. Textiles and Clothing •55 Perceptions Textiles and Clothing •56 Textiles and Clothing •57 Montréal 15 22 33 7 115 82 3 34 37 184 Other Textile Products Narrow Fabrics Dyeing and Finishing Household Products Hygiene Products Wire Sub Total : Textile Related Products Motor Vehicule Accessories Other Product Sub Total : Total : 8,380 247 1,090 1,337 349 1,273 2,019 502 238 4,381 314 73 479 866 Montérigie 95 5 19 24 3 9 7 2 3 24 0 7 21 28 2 14 3 19 7,325 459 174 633 273 606 63 79 248 1,269 0 2,218 196 2,414 142 2,688 179 3,009 38 4 4 8 0 4 4 0 3 11 0 1 10 11 3 3 2 8 2,442 340 69 409 0 300 55 0 48 403 0 129 136 265 247 954 164 1,365 Employm. Centre du Québec Companies Employm. Companies Note : The list of manufacturing is based on the classification Des activités économiques du Québec (CAEQ) Sources : Ministère des Finances et de la Recherche du Québec (MFER) Centre de recherche industrielle du Québec (CRIQ) 6 1 23 30 Textile Products Felts and processing of natural Fibres Carpets, Mats and Rugs Canvas Products Sub Total : 12 41 1,743 1,796 Compagnies Employm. 2 3 30 35 Textile Sectors Primary Textiles Manmade Fibers Yarn and Woven Fabric Knit Fabric Sub total : 37 0 5 5 0 2 5 0 5 12 1 0 8 9 6 5 0 11 Companies Estrie Other regions Total 2,405 0 62 62 0 179 60 0 410 649 215 0 184 399 802 493 0 1,295 31 1 6 7 1 2 4 0 4 11 0 0 6 6 0 6 1 7 2,281 59 187 246 71 23 973 0 413 1,480 0 0 49 49 0 411 95 506 131 1 28 29 4 8 24 1 1 38 3 3 51 57 2 2 3 7 2,378 11 332 343 256 220 284 6 25 791 121 32 499 652 291 246 55 592 516 14 96 110 23 47 77 10 21 178 10 12 119 141 15 33 39 87 Employm. Companies Employm. Companies Employm. Companies Chaudière Appalaches Quebec Textiles Industry Regional Profile 25,211 1,116 1,914 3,030 949 2,601 3,454 587 1,382 8,973 650 2,452 1,543 4,645 1,494 4,833 2,236 8,563 Employm. Strategic Elements Textiles and Clothing •58 Strategic Elements Challenges of Globalization Globalization is the biggest challenge the Textiles and Clothing cluster has to face. With the January 2005 deadline fast approaching, stakes are so high that industry players are focusing all their attention on the issue and are giving it top priority. All eyes are fixed on future foreign competitors. Montreal companies are seeking new competitive advantages to exploit. They know that they will have to fight to retain their market share, both on home ground and abroad. The future for some seems uncertain, and their survival depends more than ever on innovation and on increasing their competitiveness. Despite the importance of the globalization issue for the entire cluster, its two subclusters will have to adopt different strategies to meet the challenges involved. First, the Fabric and Products sub-cluster must turn its attention towards innovating new products. The accent should be placed on R&D and technical textiles opportunities. Improving production methods and productivity is also an issue that should be addressed, especially by producers of more traditional products. The textile products sector must also strive to ensure the availability of skilled labour. The Clothing and Fashion sub-cluster must concentrate more on innovating its production methods, such as automated manufacturing. It needs to switch its production jobs to design and marketing positions. To achieve this, the fashion design industry should take on a larger role, and marketing strategies should be focused on differentiating products and creating local brands. Manufacturers of fabrics and textile products are going through a period of reorientation. With looming threats posed by more open markets, every issue becomes critical. Some of the challenges this sub-cluster needs to face are to increase R&D, focus more on the manufacture of technical textiles, ensure the availability of a skilled workforce, combat its negative image and adopt a market strategy. Encourage Research and Development Textile manufacturers must constantly adapt to innovation. Growth strategies need to be changed and adjusted to new competitive requirements. Work methods are no longer standard. Equipment needs to be renewed regularly. To contend with foreign competition, companies in Quebec must continually offer new products and new methods, which requires a strong commitment to R&D. Industry-research partnerships in the sector appear to be particularly successful already. Researchers in various fields (chemistry, nanotechnology, fibre conductivity, biotechnology, etc.), offer new fibres to companies which, in turn, ask laboratories to find them fibres and fabrics to meet their increasingly demanding, high-tech specifications. This research dynamic is one of the strengths of the sector, whose future will depend on how well it is maintained. Textiles and Clothing •59 Strategic Elements The internationalization of competition, both commercial and industrial, also keeps up constant pressure on retail prices. If they want to stay in business, Quebec’s textile companies that produce spun or woven fabrics with low added value and very low profit margins must commit themselves to a program of continuous development, which will allow them to lower their costs due to improvements in their methods. Such a renewal of production methods, which aims to reduce costs, necessarily means investing in R&D. It is important that these investments be continuous and permanent, rather than ad hoc. Fabric producers have everything to gain by using an efficient monitoring system to guide them in their investments and enable them to stay at the cutting edge of information on the most recent innovations and the best procedures to follow. Focus production on technical textiles Technical textiles are of paramount importance to the future of the sub-cluster. Not only is this sector enjoying rapid growth, but it is also the least likely to suffer the adverse effects of globalization. Technical textiles are better integrated in the rest of the economy and demand for them is wider. These businesses are much less subject to delocalization due to their high use of skilled labour and the importance of their R&D activities. Future prospects for the different technical outlets are outlined in the next section. Ensure the availability of skilled labour If it is to rise to the major challenges resulting from market globalization and accelerated technological change, the textile industry must be able to rely on a skilled workforce. To ensure constant gains in productivity, to innovate and to adapt quickly to change, the industry needs broad-based capabilities that can evolve within a more flexible work model and that encourage versatility, creativity and continuous improvement. Overall, textile company managers are increasingly aware that human resources are their main asset. In fact, the percentage of their investments devoted to training is estimated at 3.5%, which is relatively good. Steps have been made in the right direction, but there is a long way to go to reach goals related to added value and to ensure the arrival of a new generation of well-prepared and motivated workers. Indeed, low interest by students for this industry and the poor choice of competent, serious candidates for hiring are two factors for concern. Textile workers are getting older and knowledge transfer is not always assured. Combat the negative image and build an accurate profile of the situation The textile sector’s current negative image has significant adverse effects on financing, on morale in the industry and, of course, on recruiting new workers. While remaining cautious and realistic, it is nonetheless important to draw up a fairer picture of the situation, to focus on a more pointed analysis and to restore the balance of information. Indeed, the hardships experienced by certain sectors of the textile industry in Quebec receive considerable media attention and are presented as an overall picture to both the general public and the economic community, while some eloquent examples of companies adapting to new commercial demands and evolving in specific high-tech fields such as technical textiles are like well-kept secrets. Probably the simplest and most effective way to improve the sector’s image would be to promote its successes. This approach would be beneficial not only for the general public and the business community, but also and especially for young people, who represent the cluster’s future. Problems relating to image and recruitment are inextricably linked and cannot be resolved as separate issues. Textiles and Clothing •60 Strategic Elements Adopt a market strategy The fabrics and textile products industry must engage in strategic alliances with foreign players. For some products, it can also seek partnerships with “gate openers”, whose strong brands or distribution areas can absorb production runs that are too long for Quebec or Canada. The industry must also differentiate itself in market niches. Most of the time, new products correspond to certain market niches. Also, countries with high labour costs, product differentiation is a more effective strategy than one based on price competition. Considering the relatively small size of the Canadian domestic market, the industry must rely more on international commerce than on its own domestic market to grow and to justify major, structuring investments. Exports must therefore play a central role, since they are almost always a critical factor in a company’s development. Exporting their products allows them to reach critical mass, expand their client base and counter trade offensives from other industrialized countries. Other concerns In addition to these main issues, there are other concerns at stake. The textile industry must, among others, face up to the inadequate local availability of raw materials, equipment suppliers and technology suppliers. These resources are currently imported, especially from Europe and Japan, at a relatively high cost. Access to venture capital is still somewhat difficult. Emerging markets offer few openings and there are no international agreements as yet for the mutual recognition of technical standards. Clothing and fashion The clothing and fashion industry is anticipating negative consequences from the complete opening of the markets. Several studies have been commissioned to estimate the effects of globalization on employment in this sector. The Conseil régional de développement de l’Île de Montréal (regional development council for the Island of Montreal – CRDÎM) conducted a study on the subject for the Montreal administrative region in summer 2003. The Apparel Human Resources Council also published, in winter 2004, a report on the question covering the industry across Canada. The figures vary considerably from one study to another. If we are to believe their estimates, the January 2005 shock will result in between 4,000 and 16,000 job losses in the Montreal metropolitan area. Delocalization has therefore become a major concern for the clothing industry. Clothing and fashion companies in Montreal will need to adapt to this new reality. The main challenges facing them lie in their capacity to modernize their manufacturing processes, improve their skills, focus on design and distribution and adopt market strategies centred on exports and product enhancement. Modernize manufacturing processes The apparel industry must accommodate a growing trend towards the delocalization of production to low-cost countries. Local production will remain an advantage, however, for a certain number of products. Many companies will also find it an advantage to develop a mixed production strategy, including some local production and some outsourcing to foreign manufacturers. Textiles and Clothing •61 Strategic Elements If they are to maintain an acceptable level of competitiveness in the world market, local industries will need to invest in modernizing their manufacturing processes. Local production must become automated and more economical from a labour standpoint, if it is to remain cost-effective. To achieve this, it must build on adapting to new generations of pre-production software (design, pattern, grading and placement) and establish new production methods to allow just-in-time manufacture, such as modular production. Other challenges that need to be met are improving methods for analysis and sales forecasts and establishing ways to optimize production localization strategies. To encourage new manufacturing processes in the clothing industry, business leaders need to be made aware of the importance of investing in R&D. A strategic monitoring system would also be extremely useful to keep local businesses informed of recent innovations and best practices. Improve skills There is currently a shortage of skilled office workers with training in the clothing industry. The industry’s poor image and its pay practices are detrimental to recruitment efforts. Training is often inappropriate for supporting the launch of new operational models. Most companies do not apply the best basic human resources practices to attract skilled employees for the current context. The use of information technology in the supply, production and distribution chains will increase, which will bring the need to integrate new skills and new methods into company practices. The industry must work with training centres to guarantee skilled labour that can not only master current leading-edge technology, but also contribute to the design of new, more efficient tools. The current profile of clothing industry workers and their working conditions are barriers to modernization. Negative perceptions of working conditions in this sector affect the possibilities of recruiting more skilled labour and decrease the chances of seeing innovations emerge out of the workplace. Focus on design and distribution One of the greatest challenges facing the clothing and fashion sub-cluster will be to transform blue-collar jobs, which may be delocalized, into white-collar positions. Production automation and delocalization will have the effect of lowering the number of workers assigned to production. From another standpoint, the integration of design and distribution activities into the production chain will enable the creation of new jobs. Distribution networks are seeking to improve their supply management with the aim of increasing efficiency in a strongly competitive context; this requires close partnership ties and the sharing of strategic information between retailers and suppliers, and between suppliers and subcontractors. In creating such ties, the networks are linking product development to retail sale. Through integration, local distribution networks are expanding and could become ideal vectors for increasing exports. Design activities are also a way to secure the future of Montreal’s fashion industry. There are currently no local labels or large design companies that are internationally known, and links between designers and manufacturers here are poorly developed. Textiles and Clothing •62 Relational Assets Textiles and Clothing •63 Relational Assets Breaking Down Barriers It is clear, from reading the first part of this document, that the “Textiles and Clothing” cluster is quite fragmented, which does nothing to facilitate exchange and discussion among industry players. To this should be added the fact that Quebec’s textile industry is largely controlled by foreign interests. More than 50% of earning assets in this sector belong to US or European groups. Third important element: the unanimous opinion of those consulted is that there is a complete wall between the decision-makers of the two sub-clusters, “Fabrics and Products” and “Clothing and Fashion”. Both industry players and their respective partners believe that the two sectors each have their own development forces and that they belong to two separate worlds. Share the challenges Despite the challenges of globalization, the stakeholders of the two sub-clusters do not feel the need to show solidarity. There are no links between them and they both prefer to leave things that way. The issue of quotas “that protect one industry at the expense of the other” increases this lack of understanding and the feeling of each sub-cluster that it has to deal with sets of rules that are not only different, but unfair. Some go as far as saying that no links will ever be possible, and the two sides still avoid sitting at the same tables. Within each of these sub-clusters, however, mentalities are changing and industrialists are forging ties among themselves and with certain development partners. The threat of stiff competition is moving them to set up common strategies and to identify specific targets. The development of technical textiles is also a factor in breaking down sectoral barriers. The “Fabrics and Products” sub-cluster, which already has ties with other industry clusters such as forestry products (pulp and paper), petrochemicals (plastics) and aerospace, is tending to strengthen those ties to the point where we will soon be able to refer to cross-sector alliances. These budding relations among industries, training institutes, unions and financing bodies need to be intensified; however, they are compromised by lack of optimism for the future. This situation means industry needs are ill-understood at a critical time where rapid adjustments must be made, as dictated by the acceleration of technological advances and by the opening of the markets. The establishment of the Table de concertation de l’industrie textile (textile industry consultation committee) is admittedly a step in the right direction, especially since industry players have accepted to be a part of this committee to develop a common vision, whether it be to share the same analysis of a situation or to identify agreed courses of action to rise to today’s biggest challenges. Furthermore, the work carried out at the beginning of the year by the Comité sectoriel de l’industrie textile du Québec (Quebec textile industry sector committee), leading to a provincial analysis of the textile sector, built up a clear picture of the situation and identified the issues at stake with respect to human resources. Last June, the key players in the sub-cluster agreed to Textiles and Clothing •64 Relational Assets participate in an exploratory conference whose goal was to adopt a plan of action to improve the following: a common and modern vision for the sector, cooperation between decision-makers, basic training, continued skills development and planning for the new generation of workers. The result of this strategic reflection was presented last June 16 at the industry consultation committee and provides inspiration in turn for the industry’s choice of priorities. Develop a new generation of workers To go with added value and concentrate entirely on new technical textile opportunities, it is important to be able to count on a motivated and well-trained workforce. But there is no new generation of workers, and the ageing of the current workforce may worsen the situation. Despite these factors, industries and training institutes have not yet expended all their efforts to attract new candidates, enrich skills or facilitate the labour force’s adaptation to change. Schools and colleges deplore business leaders’ lack of commitment at a time when a well-planned offensive could make all the difference. The companies retort that the training establishments are unable to respond efficiently to their needs. All the while, hiring standards are being lowered and no longer require a high school diploma to fill vacant positions, and the institutions are unable to start or continue their textile programs due to insufficient students. During their summer 2004 deliberations, the Textile stakeholders did however identify strategic actions to strive against this vicious circle. The majority of them believe that the recruitment of students is currently the main concern and that the training offer can be clarified once the students are back again. The recruitment problem is closely linked to the sector’s image. So this problem needs to be addressed in priority by uniting efforts to increase awareness among target groups. Offer shorter and more specialized training Furthermore, industrialists and training institutions both agree on the need to innovate with shorter but more specialized training programs. Businesses agree to become more involved by helping with internships or work study programs. Plans are even afoot to work with the ministries concerned (Emploi Québec, Human Resources Canada) and the unions to facilitate workers’ access to skills development, by making use of slower periods or temporary work stoppages. Clearly, the flexibility of management practices, employment-related measures and training programs must be improved in order to adapt quickly and effectively to the current situation. In the “Clothing and Fashion” sub-cluster things are changing too, thanks to consultations recently held with control groups to identify the industry’s needs. Even if certain reservations persist, closer ties are being forged between training institutions and industry. The Groupe Affinité, created through an initiative of the Association of Community Colleges, is a clear example of this. The Collège Lasalle, Cégep Marie-Victorin and École des métiers des Faubourgs de Montréal are representatives of this group. Much work remains to be done and the industries are not yet convinced of the training institutions’ capacities to respond to their needs. This no doubt explains why companies continue to train Textiles and Clothing •65 Relational Assets employees internally. Businesses are not open to internships either, even if they concede that this approach would allow their sector of activity more exposure and would probably contribute to changing people’s attitudes. Such little harmonization hampers efforts to improve the situation, while labour shortages are already being felt in some areas. For example, companies are crying out for pattern makers but there simply aren’t enough of them. The same situation applies to positions in logistics or shipping management. Industries deplore the time scales set by the Ministry of Education for the modification of training programs. Just-in-time, quality control, IT management and market launches are still not part of course curricula, but mastering these techniques is becoming a priority for the industries. Bureaucracy, much more cumbersome here than in other provinces, is being criticized. Encourage union-management dialogue It would also be beneficial to encourage more sustained dialogue between management and the unions. According to the unions, there seem to be two management models in operation. In the first model, managers are willing to adopt more motivating human resources management practices, which would help adopt more flexible work organization models and encourage unions to act as partners for change. The second model is traditional; the power relationships are more rigid, management wants to impose new cost-reduction methods, and multitasking is thereby synonymous with loss of acquired rights for the unions, who do not see the long-term job protection that improvements in manufacturing processes can bring. Profound mistrust between both parties does not allow for reasonable analysis of the issues at stake, nor for the adoption of models founded on continued improvement. In the case of clothing and apparel, unions are themselves undergoing fundamental restructuring, which prevents them from fully playing their role as partners in work reorganization. Their membership has fallen and is likely to continue to do so, since the average age of workers in this sub-cluster is 47 years. In addition, the order issued five years ago has slowed unionization. Internal wars are being waged. One example of this is the women’s clothing and men’s clothing unions, which have been merged for a long time but are still not fully integrated. Raise awareness among financers and investors on the changes underway Many financing companies and development organizations are pessimistic about the future of the sector and are hesitant to back it right away. Industries deplore the fact that these institutions only have a global vision of the “Textiles and Clothing” cluster, which prevents them from seeing the potential of certain value-added sectors or the technical textiles sector. One of the priorities of the textile industry consultation committee is therefore to give partners a full and detailed account of the situation. A number of players in the “Clothing and Fashion” sub-cluster seem to want to lead the same type of campaign, even if they have not yet organized any focus groups on the question. In each case, they point to the number of jobs at stake and the history of a cluster that has always displayed a capacity to adapt to change through different economic cycles, which helps provide a clearer, more lucid view of a changing industry. Textiles and Clothing •66 Avenues for Growth Textiles and Clothing •67 Avenues for Growth Two Segments, Two Speeds The emerging sector of technical textiles is opening numerous growth channels for the fabrics and products cluster. R&D, which fuels the sector with new materials and products, guarantees the renewal of production in more promising areas. In the clothing and fashion field, Montreal’s industry is in a more precarious situation. Future avenues such as design and distribution network integration are still out of local hands. Since it did not focus on these issues earlier, Montreal’s industry now finds itself having to sign agreements with large international designers and foreign distribution networks to guarantee its production. The following text is an overview of the different avenues open to the cluster. The paragraph relating to fabrics and products is more detailed as there are more possibilities and more information available for this sector. Moreover, the synergy between the two sub-clusters needs to be developed. Many outlets for technical textiles also directly affect the clothing and fashion branch. For example, protective, sports and other technical apparel rely both on technical textiles and on clothes manufacturing. In this case, even if the avenues for technical textiles apply more to fabrics and products, we should bear in mind that they also represent a future for clothing and fashion. Fabrics and products Manufacturing of fabrics and textile products has slowed across the board during the last few years; however, the sector of non-wovens has managed to maintain its position on the domestic and international markets. It is one of the most promising sectors for the industry’s future. Technological advances in spun fabrics could also be a channel for future growth. Montreal’s history as a producer of knitted fabrics can also work to its advantage. Non-wovens — Unlike other textile materials, Canadian imports of felts and non-woven fabrics come almost exclusively from developed countries (United States, Europe, Japan). Quebec can play its cards with its own competitors, whose production restrictions are similar, for example in thermal spinning composites and thermal blowing of chemical filaments, such as non-wovens made via air or hydraulic methods. Industries in Quebec can also watch developments in this non-wovens sector and look for future market opportunities. Almost all North American production of non-wovens is currently geared towards the manufacture of short-term applications for the health and medical care, wiping, filtration and industrial production markets. However, there is more to this sector, which includes a whole family of staple fibre non-wovens for long-term applications. These include geotextiles and agrotextiles, fabrics for car interiors, plastics reinforcements, floor coverings and backing coatings. This sector is expanding and offers an extraordinary variety of products. Spun yarns — Although Quebec produces little in this field, there have been a number of new openings recently. Industrial hemp has been rediscovered; its flexibility and resistance look promising for construction applications. Textile recovery programs are being developed. At the cutting edge of biotechnology, a Montreal firm is attempting to regenerate the exceptional Textiles and Clothing •68 Avenues for Growth properties of spider silk by fixing the properties in goat’s milk protein. The NAFTA has allowed Canada to become the first foreign supplier of spun yarns and chemical fibres to the United States. As US spinning mills are abandoning this sector in favour of cotton, this could give Quebec the opportunity to increase its presence there. Knitted fabrics — Quebec manufacturers are reputed for their creativity and innovation in this sector. In fact, they account for over 90% of Canada’s production and exports of knitwear. These products are almost entirely destined for the clothing industry. The industry has been hit hard by the delocalization of clothing manufacturing firms and the opening of the markets, but its traditional vitality and know-how could help it to promptly reposition itself. Technical textiles Until now, Quebec’s textile industry had focused primarily on producing mainly aesthetic and functional materials for traditional markets such as clothing and interior decorating. Thanks to the NAFTA, this strategy has been relatively profitable up to now. Today, however, it seems that the industry needs to take a different course. Technical textiles are now the most promising guarantors of the industry’s growth. In this respect, Quebec has a critical mass of fabric producers, which will allow the province to make the adjustment more easily to new technical and commercial applications requiring advanced materials. A recent study carried out by Fintex and Groupe Textile proposes five avenues for growth in the technical textiles field. They are textiles for use in protection applications, industrial textiles, textiles used for making sports and leisure equipment and apparel, textiles developed for the transportation industry and textiles with medical and healthcare applications. The following text summarizes the study’s arguments in favour of these five future growth channels. Safety textiles — Several products in the safety and protection field constitute a protected market in which local firms are preferred suppliers. Uniforms for emergency services show especially good growth potential; these include police, firefighter and military uniforms. Uniforms providing ballistic protection or protection against cutting or stabbing weapons are expected to occupy an increasing market share, especially in the correctional services field. Technologies used to manufacture non-wovens or composites, and the incorporation of intelligent or interactive systems into textiles will be in greater demand. Several local textile firms, considered industry leaders, are already at an advantage in this sector. Industrial textiles — The growing concerns of the population in Montreal with regard to household, industrial, air and water pollution, create extremely interesting opportunities for the filtration market. In fact, the use of filtration products is growing, primarily in applications relating to the filtration of contaminated air, waste water or various industrial liquids. Belts and filter membranes will be used increasingly by the pulp and paper industry and the transportation industry respectively. Industrial absorbents and abrasives are also interesting markets. Manufacturing technologies for non-wovens and composites or for plasma processing are used commercially in this sector and are becoming increasingly a factor. Some local companies appear to have acquired good skills in this field already. Sports and leisure textiles — Outdoor activities and extreme sports are becoming increasingly popular. These activities often require specialized material and make up very lucrative markets. In fact, they have hardly any competition. These markets incite the development of specific textile Textiles and Clothing •69 Avenues for Growth materials such as luminous night apparel, light composite sports equipment, or sports apparel with enhanced comfort properties. Technologies such as the manufacture of non-wovens or composites and the incorporation of smart or interactive systems will also be required in this sector. As previously mentioned, some local companies are already at an advantage when it comes to these types of production procedures. Transportation textiles — There are new applications for modern textiles in the aerospace, automobile, tire and other transportation materials industries. Generally, in these sectors, continued efforts are made for the development and use of lighter-weight parts. Composites reinforced with textiles are good candidates for such applications. They combine solidity with light weight while respecting reliability and safety criteria. Current trends in the automobile market also include a combination of improvements for luxury fabrics with simple lines and minimum decorative features. These products should lead to more comfort, durability, resistance to stains and humidity, as well as improved odour control. As with the other technical outlets, manufacturing technologies for non-wovens and composites, combined with plasma processing, will be increasingly used in this sector. These procedures will be centred on the production of parts and other lightweight components that possess enhanced structural cohesion. Healthcare textiles — There are already several companies in Quebec specialized in this sector. Competition is stiff, however, and the market is dominated by large US firms. Local industry therefore has to show resourcefulness, innovation and leadership if wants to remain competitive. Quebec companies are primarily involved in the market for external textiles of a highly varied nature such as surgeons’ aprons, bed sheets, sterile wipes, masks, caps and shoe covers, dressings for wounds, prep pads, disposable sheets for surgery, medical tape, bedcovers, multilayer gloves, emergency blankets, compresses, etc. Of all the sectors, the medical and sector is the most likely to profit from technologies such as the manufacture of non-wovens or composites, the incorporation of smart or interactive systems, and plasma processing. Clothing and fashion In addition to the future channels created by new technical opportunities in the clothing sector, there are other expansion possibilities for the industry. We have already mentioned the importance of focusing on design and distribution. In this respect, however, local control is insufficient. If they do not develop their own labels, lines of clothing and distribution networks, local manufacturers must come to agreements with foreign order originators to guarantee their production. A strategic alliance with a “door opener”, who gives access to a market or a label or both, is therefore an interesting option. The future avenues for the growth of the clothing and fashion industry in Montreal are also a part of Montreal’s strategic strengths. For example, the quick response and small quantity needs of the nearest geographical markets, the proximity of the US market and the opening of new markets all represent good development opportunities. Textiles and Clothing •70 Appendices Textiles and Clothing •71 Appendices Sources Studies and analyses La filière industrielle de l’habillement au Québec, Enjeux, tendances et perspectives de développement [The Clothing Industry in Quebec: Issues, Trends and Development Outlook], Quebec, MDERR, Direction des biens de consommation, October 2003. L’industrie montréalaise du vêtement et de la mode : Les défis à court terme et les mesures pour les surmonter [Montreal’s Clothing and Fashion Industry: Short-term Challenges and How to Respond], Charest, Caroline, Hamel, Judith et Vaillancourt, François, study conducted for the Conseil régional de développement de l’Île de Montréal and the Ville de Montréal, September 2003. Le vêtement au Canada : Perspectives d’avenir, [Clothing in Canada: Outlook for the Future], Apparel Human Resources Council, Labour market study prepared by Richter Conseil, March 2004. La filière industrielle des textiles au Québec : Enjeux, tendances et perspectives [The Clothing Industry in Quebec: Issues, Trends and Development Outlook], Ministère du développement économique et régional et de la recherche (MDERR), Quebec, 2003 L’industrie québécoise des produits de soin personnel, Profil industriel [The Personal Hygiene Products Industry in Quebec, Industrial Profile], Ministère du développement économique et régional et de la recherche (MDERR), under the direction of Clément Drolet, Direction des industries chimiques et de la métallurgie (Chemicals and Metals Industry), Quebec, 2003. Diagnostic provincial pour le secteur textile [Provincial Diagnostic for the Textile Sector], Comité sectoriel de main-d’œuvre de l’industrie textile du Québec, Bell Nordic/IPSÉ, December 2003 Conférence exploratoire du 1er juin 2004 [Exploratory Conference of June 1, 2004], ConsensusAction for the Textile Sector, Institute for Socio-economic Progress, May 2004 Conférence exploratoire du 1er juin 2004 [Exploratory Conference of June 1, 2004], Minutes, Consensus-Action for the Textile Sector, Institute for Socio-economic Progress, August 2004 La nouvelle économie textile au Québec, les secteurs de développement [Quebec’s New Textile Economy, development sectors], Richard Cormier, Fintex mécanique et procédés/Groupe textile, 2002 Textiles and Clothing •72 Appendices Technical Support from the Ministries Involved Marie-Annick Drouin, ministère du Développement économique et régional et de la Recherche (MDERR) Lise Grenier, ministère du Développement économique et régional et de la Recherche (MDERR) Christian Champagne, ministère du Développement économique et régional et de la Recherche (MDERR) Individuals Consulted Jean Rivard, Advisor, Apparel Human Resources Council Diane Savard, Advisor, Emploi Québec Paul Legault, Director General, Comité sectoriel de main-d’œuvre de l’industrie textile du Québec Richard Cormier, CTT Group, Table de concertation de l’industrie textile du Québec Gérard Lombard, Director, Textile Department, Cégep de Saint-Hyacinthe Textiles and Clothing •73 Appendices Credits Editorial Director Michel Lefèvre Research and Marie-Eve Fortin Copywriting Jean-Philippe Meloche Research Assistants Jean-Pierre Meloche Charles-Albert Ramsay Julie Ranger Language Editing Frédéric Simmonot Dominique Chichera Graphic Design Pascale Detandt Metropolitan Cluster Technical Committee Michel-Marie Bellemare Economist – Regional Policy, Ministère du Développement économique et régional et de la Recherche Daniel-Joseph Chapdelaine Advisor – City Planning and Institutional Relations, Ministère des Affaires municipales, du Sport et du Loisir Yves Charette Coordinator – Economic Development, Communauté métropolitaine de Montréal André Gagnon Advisor – Industrial File Development, Ministère du Développement économique et régional et de la Recherche Michel Lefèvre Advisor – Economic Development, Communauté métropolitaine de Montréal Christine Phaneuf Advisor – Local and Regional Development, Ministère des Affaires municipales, du Sport et du Loisir Ramata Sanogo Economist – City Planning and Institutional Relations, Ministère des Affaires municipales, du Sport et du Loisir Francine Rivard Director – Regional Development Coordination, Société générale de financement du Québec Textiles and Clothing •74