It was not unexpected that Canada's textile and apparel industry would be affected by the removal of textile and apparel quotas on 1st January 2005, informed Australian Wool Innovation Limited.
For Canada's wool textile industry, which is heavily dependent on export orders from the USA, a combination of wool industry relocation and closures during 2005 resulted in dramatically falling wool textile and apparel exports compared with 2004, seriously and negatively affecting local textile and apparel manufacturing.
There was a strenghthening in the domestic retail market in 2005, which was positive for parts of the industry but further market penetration of imported finished apparel has come at the expense of local manufacturing.
Not surprisingly there has been a surge in low-priced, imported wool apparel from China.
Retail sales were generally strong in the first nine months of 2005, however clothing sales have been among the slowest growing retail value sectors - this can be mainly attributed to falling prices as volume growth has been reported as 'buoyant'.
This has been reflected in wool retail demand estimates. All wool end-use demand peaked in 1998 and has been in gradual decline until a turnaround this year. Full-year 2005 is estimated to show an improvement.
Australian Wool Innovation Limited
marketing@alchempro.com
