Portrait and development of Québec Textile Industry in brief
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1 434 Portrait and development of Québe Textile Industry in brief 324 1,966 TEXTILES PRODUCT PLANTS» SCIAN ,4% ,569 1,651 We are presenting you a new portrait of the textile extrated from our Diagnosti setoriel provinial, published in November 21*. Some eighty (8) businesses and key stakeholders of our TEXTILES PRODUCT PLANTS» SCIAN ,9% setor were involved. The quebeer textile setor has experiened numerous hanges during the ourse of 45,4% the last deade. Even though it324 is still in mutation, new have emerged, market opportunities partiularly in 438 tehnial use and 11 addedvalue textiles whih represent to ,966 for Québe. The omplete version of a high potential this diagnosis is available on our web 1,569 site at 2, ,651 Nombres 1,45 d employés TEXTILES PLANTS» industry SCIAN 313 1, ,45 Have a pleasant reading! KNITTED CLOTHES» SCIAN Number of Enterprises (29) ,7% 2 1, Industry Size and Struture 3 12,69 Total number of jobs, SCIAN 313, 314 and 3151 (21) 62 Nombres d employés TEXTILES PLANTS» SCIAN 313 TEXTILES PRODUCT PLANTS» SCIAN ,9% 1 12,927 to Inludes following types of plants: fibres, yarn and thread, narrow fabris and embroidery Shiffli, knits, finishing, upholstery , , ,7% 1,349 jobs ,45 1,436 Inludes following types of plants: arpets and rugs, urtains and household linens, textile and anvas bags, all other textile produts TOTAL 73 Inludes following types of plants: stokings and soks, and all other types of lothing knitting ,46 emplois KNITTED CLOTHES» SCIAN ,239 TEXTILES PRODUCT PLANTS» SCIAN 314 7,15 jobs 552 1,966 45,4% ,96 jobs 434 KNITTED CLOTHES» SCIAN Plant size based on number of employees Plant size based on number of employees JOB BREAKDOWN ACCORDING TO BUSINESS SIZE, QUÉBEC, 29** 45,4% 2 8,7% 3,679 3, , out by ST Marketing. 5 tobeen 99 arried * The manpower diagnosis for the textile industry in Québe has 21**toThe 49 breakdown of the number of jobs 1,569 aording to size of the businesses, has been realized using 29 data, the 21 data not allowing us to do so, whih explains 555 the differential in the total number of jobs. 1, ,239
2 BUSINESSES BREAKDOWN BY ADMINISTRATIVE REGION, QUÉBEC, 29 Montréal 41.1% 15.2% Montérégie Autres 4.6% 2.1% Mauriie Saguenay LaStJean Laval 2.1% 3.6% 4% 4.2% 4.4% 4.8% 6.7% 7.2% CapitaleNationale Estrie Laurentides Lanaudière ChaudièreAppalahes CentreduQuébe WORLD TRADE (29) Export $523 M IMport $1.4 G Trade balane ($9 M) MAJOR MARKETS OF OUR SECTIONAL BUSINESSES ACTUAL CLIENTELE, QUÉBEC, % Other markets Sports and leisure equipment Clothing and shoeing Constrution and Buildings 3.5% Furnishings and floor ing 28.9% Transportation Personal safety equipment 24.6% Eletroni filtration and other industrial materials 19.4% Hygiene et medial Agriulture, hortiulture Paking Environment 5% 6.2% 7% 8.3% 9.7% 12.4% 12.6% 2 Geotextile, ivil engineering 2.6%
3 IMPORT SCIAN 313 SCIAN 314 EXPORT GERMANY BELGIUM PORTUGAL ISRAEL EGYPT PAKISTAN INDIA BANGLADESH CHINA JAPAN COLOMBIA BRAZIL AUSTRALIA AUSTRALIA Import by the Québe textile industry fall within the range of $1.4 G for 29 and mainly ome from the United States and China ($529.7 M). Sine 25, total import experienes a setbak of 2.7% annually. The numerous plant losures in Québe these last few years, ould explain some of this import setbak. Sine 22, the oming in of some ountries grows onstantly in as far as Québe s import are onerned, i.e.: Israel for the textile plants group (SCIAN 313); But most of all, India, Pakistan, Bangladesh, Egypt and Portugal for the textile produts group (SCIAN 314). In 29, export by Québe textile businesses amounted to $523 M and are mainly meant for the United States ($366.5 M). Total business export represent lose to a third (28.7%) of the revenues generated by the industry ($1.8 G in 28). In spite of the important export setbak of the textile industry observed these last years, some export markets are just the same in strong growth sine 22, i.e.: China, Brazil, Colombia, Australia for the textile plants group (SCIAN 313); Germany, Japan, Belgium and Australia for the textile produts plants group (SCIAN 314). As for profitability, the textile industry generated total net profits of $174 M in 28 representing 1.2% of its total revenues 1. This performane ompares favourably with the whole manufaturing setor in Québe (net profits of 7.2% in 28). Businesses with ativities related to tehnial textile use (TTU) and other added value textiles (OAVT): In 27, 126 businesses were involved in these ativities inluding other added value textiles (OAVT); In 21, as reveals the survey onduted within the frame of this atual diagnosis, than one business out of five (17.2%) was involved in the TTU and OAVT 2 manufaturing. The manufaturing of TTU and OAVT aounted for a world market estimated at $127.3 G in 21: The ategory of impregnated fabris, lined or laminated oatings and tehnial textile artiles strongly ontributed to export by the Québe industry in 29 ($128.7 M total). These export ativities to the United States are inidentally in strong growth sine 22 (a 12.8% inrease). MANUFACTURING ACTIVITIES Profitability (28)* Businesses Net Profits $174 M Net Profits in Perentage 1.2% Businesses involved in tehnial use textiles and other added value textiles (27)* 126 Among the various TTU market segments (28), appliations related to safety equipment (PROTECH), transportation (MOBILETECH) and filtration, eletroni and other industrial materials (INDUSTECH) show the most potential growth in Canada. 1 We are talking here of an estimate based on the ratio between total profits and total revenues of the industry in 28, exluding the lothing knitting setor (SCIAN 3151). 2 This result also inludes businesses of the lothing knitting setor (SCIAN 3151). Businesses involved in tehnial use textiles and/or other added value textiles (21) Businesses subontrating part of their prodution volume (21) (in most ases, than 25% of their prodution volume). 17.2% 5.5% *Note: Exluding lothing knitting setor (SCIAN 3151). 3
4 MANPOWER AND HUMAN RESOURCES MANAGERIAL PRACTICES MANPOWER PROFILE Fulltime jobs* 93.6% Formal Eduation of employees (26) BREAKDOWN OF EMPLOYEES ACCORDING TO SEX, QUÉBEC, 26 High shool diploma 29.3% Voational, apprentie or trade shool diploma 15.1% College, CEGEP diploma 12.2% MALE FEMALE University diploma 9.5% No ertifiate nor diploma 32.9% Businesses employing people born outside Canada (21) 39.7% 1.3% of atual employees SCIAN % 65.4% Businesses with unionized employees (21) 22.6% AVERAGE SALARY (28) Prodution workers $33,392 SCIAN % 54.9% *Note: exluding lothing knitting setor (SCIAN 3151) Other employees (staff, administration, et.) $59,495 BREAKDOWN OF EMPLOYEES ACCORDING TO AGE, QUÉBEC, 26 SCIAN % 64.6% TOTAL 43.5% 56.5% Job Opportunities Aording to Emploi Québe, the setbak in the number of jobs noted these past few years in the textile field should ontinue into 214 (SCIAN 313 and 314) but at a substantially slower rythm 3. Additional losses of 1, jobs are antiipated between 21 and 213 with a slight employment rey around Information on the labour market (IMT). Le marhé du travail et l emploi setoriel au Québe 21214, juillet As per estimates provided by the Diretion du développement des ompétenes et de l intervention setorielle. Commission des partenaires du marhé du travail, 7 septembre 21. 4
5 MAJOR CHALLENGES AND CONCERNS FOR HUMAN RESOURCES The textile setor s businesses mention their exeptionally high onern about reruiting qualified personnel (73%). Invited to omment on the importane of ertain human resoures hallenges, most of the setional enterprises judge the following onerns as very important : Retaining and building employee loyalty of key personnel (63.8% partiipants agree); Personnel skills development for more polyvalene (53%); General personnel training and skills development (52.2%). RECRUITMENT Businesses reruiting personnel during the last six months (21) 73.4% Main positions to be filled by the businesses (21) Industrial sewing mahine operators 53.6% General labour workers 27.6% Sales representatives 19.3% Tailors 18.3% Textile produts handlers 15.9% Reruiting Ativities Shortage of andidates with required qualifiations (74.9%) as well as neessary work experiene (55.4%) are the main pitfalls for reruitment. In order to ome their reruitment diffiulties, businesses have put forward the following three main measures: Inhouse training offered to new personnel (59.2%); Hiring of older than usual personnel (36.9%); Atual personnel training and skills development (31.2%). TRAINING AND SKILLS DEVELOPMENT Businesses having realised training ativities the last six months (21) 55.2% Main Training Needs (21) Sales and Marketing 29.9% Personnel supervision and team management 22.8% Use of new manufaturing tehnology 22% Mastering of textile prodution tehniques 21.8% Data proessing and eletroni ommere 17.7% 5
6 PERCENTAGE OF PAYROLL SPENT ON PERSONNEL TRAINING AND DEVELOPMENT OVER THE LAST TWELVE MONTHS, QUÉBEC, 21 1% to 3%: 39.6% Over 3%: 1.1% Do not know/do not answer 3.1% Less than 1%: 47.2% Employee training and development needs for the oming years, QUÉBEC, 21 Current training ativities Five main topis are favoured by businesses for urrent training % ativities: % Health and Seurity at work (41.6%); Quality and ontinuous improvement (3.8%); Pay Equity (22.9%); Mastering textile prodution tehniques (22.9%); Personnel supervision and team management (2.2%) % The training method known as oahing (75.4%) is the most popular, followed by inhouse workshops (32.4%); Arued polyvalene and produtivity on the part of 2 employees are very learly the major benefits assoiated to training for the businesses of the setor; Businesses training needs for the next years vary very muh % Others 5.3% Management 5 Data proessing and eletroni ommere 17.7% % Usage of new manufaturing tehnology Mastering textile prodution tehniques 22.8% 22% Sales and Marketing No speial need Personnel supervision and team management
7 The textile businesses have implemented some innovative praties the past years: Growing ommuniation and oahing efforts towards personnel, espeially more regular ommuniations on the orientations and objetives of the business (48.2% of partiipants say they have implemented suh pratie); Better flexibility on the part of businesses regarding proposed work shedule, espeially flexible hours or flextime (41.3%) and summer shedule (24%); Improvement of working onditions espeially through a personal holiday bank (31.3%) followed by premiums (16.2%). RESEARCH AND DEVELOPMENT Intramuros and external R & D ativities (21) Businesses having an R & D budget omprising external assignments 77% Businesses having an R & D budget devoting than 5% of their annual turn 61.3% Part of the R & D budget dediated to new produts development 63.6% Use of external partners among those disposing of an R & D budget 42.1% ECONOMIC ENVIRONMENT Among the main hanges whih happened in the eonomi environment of the textile industry, let us note: SUSTAINABLE DEVELOPMENT The urrent presribed ontext is favourable to businesses onerned about taking an important shift in sustainable development. It is also very interesting to observe that sustainable development reveals itself as being a priority (very important/important enough) for the majority (76.1%) of businesses surveyed for this diagnosis. Appreiation of the Canadian dollar and the entry of China in the World Trade Organization (WTO); Abolishment of import quotas sine January 1st 25 favouring ountries with low prodution osts; Adoption in 29 of the United States Buy Amerian At putting aside for a ertain time, the Canadian manufaturers wishing to benefit from gnment ontrats (at federal and loal levels). 7
8 21 main assets Textile enterprises Key ators of the industry Quality produts Great flexibility: a quik answer to ustomer requests and prodution operations adapting swiftly to their requirements. Capaity to answer in a timely manner to ustomers requirements Rapid delivery Well anhored ulture and apaity to innovate, even though arued efforts remain to be done for a good number of businesses. Capaity to adjust their produts aording to hanging markets and ustomer requests. 21 major hallenges Textile enterprises Key ators of the industry Shortage of qualified manpower Pries somewhat nonompetitive Manpower aging Development of new markets, espeially in researh and identifiation of potential ustomers world wide. Qualified manpower reruitment is beoming ruial in a ontext of innovation and development of new markets. Manpower replaement in businesses at the management level as well as manpower in general (a hallenge found very omparable to the whole manufaturing setor). CSMO Textile en route for you! You are operating a textile business and wish to inform us of the hallenges you are faing as regards human resoures and training? Obtain support to implement management tools, hear about available training, get pertinent information on our setor? Broaden your textile ontats network? We dispose of a vast expertise in human resoures and our servies are free of harge. Do not hesitate to ontat us! OUR servies : Planning manpower needs Human resoures pratial management tools Training programs on the work plae Organization of plant tours Preparation of Manpower replaement Provinial textile network RRH Training of ompanions and oahes Quality Control and other training Promoting textile setor and its areers Ave l aide finanière de :
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