Currency effects impact Canada’s technical textile sector
A new report from IBISWorld suggests that while Canada’s technical textile sector has been under strain, it continues to show positive signs.
According to industry analyst Hayden Shipp, the country’s textile industry has been in decline for several decades and has continued to struggle over the past five years. The economic downturn, coupled with competition from overseas textile manufacturers and currency effects, has taken its toll.
Mr Shipp says: “The dollar's appreciation had a negative impact on sales of technical textiles and home furnishing textiles, potential growth segments that also declined due to foreign competition.”
These trends have resulted in annual revenue loss of 6% over the past five years, falling to C$2.7 billion. Revenue is expected to fall by 8.2% in 2013.
While IBISWorld claims that the technical textiles and home furnishing textiles continue to show promise in Canada, it believes that well-funded research and development (R&D) programmes are needed if either is to realise its potential.
Over the next five years, revenue losses are expected to decelerate to an annualised rate of 3.7%, bringing revenue to approximately C$2.2 billion each year. Furthermore, the Canadian dollar is expected to appreciate at a slower rate than the US dollar, making the country’s technical textiles more price-competitive.
