The textile and apparel industry in Canada has long been a cornerstone of the country’s manufacturing sector, particularly in regions like Ontario and Quebec, where factories once employed thousands. Yet, over the past decade, this sector has undergone a dramatic transformation—one driven by globalization, automation, and shifting consumer preferences. For workers, the implications have been profound, forcing them to adapt to a new reality where production lines are increasingly outsourced, while domestic jobs face relentless pressure from cheaper imports. The ripple effects extend beyond wages and job security, touching everything from local economies to the broader cultural identity of communities that once thrived on textile manufacturing.
At the heart of this shift is the rise of what industry analysts call “vertical disintegration,” where companies fragment production into discrete stages—design, sourcing, assembly, and distribution—often relocating each phase to countries with lower labour costs. For Canada, this means that while some segments of the industry remain locally based, the core of production has largely moved offshore, leaving behind a workforce that must now compete with foreign competitors on new terms. The result is a workforce that is both more skilled and more precarious, as jobs that once required minimal training are being replaced by roles that demand adaptability in tech-driven environments.
Globalization and the Decline of Domestic Textile Jobs
By the early 2000s, Canada’s textile industry was already under strain, but the full impact of globalization became apparent in the late 2010s. Data from Statistics Canada shows that employment in the apparel manufacturing sector dropped by nearly 30% between 2010 and 2020, with the steepest declines occurring in Ontario’s southern regions, where once-thriving mills like those in Hamilton and Toronto’s industrial corridors now operate at a fraction of their former capacity. The decline was not uniform—some cities, like Montreal’s textile hub, managed to retain a portion of their workforce by shifting into higher-value sectors like technical fabrics and specialized materials, but for the majority, the transition was abrupt and often uncompensated.
The realignment of supply chains has been particularly brutal for workers in smaller towns, where textile employment once provided a lifeline. Take the case of a former mill worker in Thunder Bay, who lost her job in 2018 after a factory closed after 50 years of operation. Unlike larger cities, Thunder Bay had no alternative manufacturing sector to absorb her skills, leaving her to navigate a job market where her experience was no longer in demand. The story is repeated across the country, with entire communities now grappling with depopulation as younger generations leave in search of better opportunities elsewhere.
- Employment in Canada’s apparel manufacturing sector fell from 125,000 jobs in 2010 to 87,000 in 2020.
- Ontario accounts for about 65% of Canada’s remaining textile production, but its workforce has shrunk by nearly half since 2010.
- Between 2015 and 2020, Canada imported $1.2 billion worth of apparel from countries like Vietnam, Bangladesh, and China, far surpassing domestic production.
- Montreal’s textile sector, once a key economic driver, now employs less than 5,000 people compared to the 15,000 it had in the mid-1990s.
- The average annual wage for textile workers in Canada has dropped by 12% since 2015, largely due to job losses in lower-paying assembly roles.
The Role of Automation and New Technologies
While globalization has been the primary driver of job losses, automation has accelerated the shift, particularly in the production of standardized garments. Companies like H&M and Zara, which once relied on Canadian factories for mass production, now use robotic sewing machines and AI-driven design tools to cut costs further. In 2021, a major Toronto-based textile firm announced it would replace 200 manual stitching machines with automated systems, citing efficiency gains—though the impact on local wages was immediate. The transition has been slow to implement for smaller businesses, leaving many workers without alternatives, while larger players have been able to absorb the cost of upgrades by passing savings on to consumers through lower prices.
Yet automation isn’t just about replacing workers—it’s reshaping what jobs remain. The future of the industry lies in roles that require manual dexterity combined with digital skills, such as quality control inspectors who use augmented reality to spot defects, or technicians who maintain advanced textile machinery. Training programs in these areas are emerging, but access remains uneven, with workers in rural areas often left behind. For example, a vocational school in Windsor launched a pilot program in 2022 to upskill textile workers for roles in smart manufacturing, but enrollment was low due to a lack of awareness and transportation barriers.
Community Resilience and the Push for Local Adaptation
Despite the challenges, pockets of resilience are emerging as communities seek to adapt. In Quebec, initiatives like the *Réseau Textile* have emerged to support small-scale producers who specialize in high-end fabrics, such as medical textiles or sustainable materials. These businesses often collaborate with universities to develop innovative products, creating jobs that align with Canada’s growing demand for eco-conscious goods. Meanwhile, in Ontario’s Niagara region, a collective of former textile workers has formed a cooperative to produce upcycled clothing, leveraging local resources and reducing reliance on imported materials.
Political interventions have also played a role, with Canada’s recent trade agreements—particularly the Canada-US-Mexico Agreement (CUSMA)—including provisions to protect domestic supply chains in certain sectors. However, critics argue that these measures have been insufficient to reverse the trend, as loopholes allow companies to exploit lower labor costs in other regions. The real challenge lies in fostering a workforce that can transition seamlessly into these new, often tech-driven roles. Without targeted investment in education and retraining, the cycle of decline may continue, leaving behind a generation of workers who feel increasingly disconnected from the economy they once helped build.
www.allyspin-canada.net/en-ca/ offers a detailed breakdown of how Canada’s textile industry is navigating these shifts, including case studies from communities across the country.
The Long-Term Outlook: A Shift Toward Specialization and Sustainability
The future of Canada’s textile industry is likely to be defined by two key trends: specialization in niche markets and a growing emphasis on sustainability. As consumer demand for ethical and eco-friendly products rises, companies are investing in circular economy models—where waste is minimized, and materials are reused. For example, a Canadian startup in Vancouver has developed a process to turn post-consumer textiles into new fabric, reducing the need for virgin materials. Meanwhile, the industry’s shift toward technical fabrics—used in aerospace, medical devices, and even fashion—could create new high-skilled jobs, though these roles may require entirely new skill sets.
Yet the transition won’t be painless. The current workforce, many of whom have decades of experience in traditional textile production, will need to adapt quickly. Without systemic support, the risk is that the skills gap widens, leaving behind those who cannot keep up. The question for policymakers, employers, and workers alike is whether Canada can harness this transformation to build a more dynamic and inclusive economy—or if it will continue to struggle with the legacy of a sector that once defined its industrial heartland.