canadian textile industry labour market information and hr needs

i

thrc-crhit.org2010

Canadian Textile Industry Labour Market Information and HR Needs Assessment

A report on the of Canada’s textile industry.

changing face

Textiles Human Resources Council500 – 222 Somerset St., Ottawa, ON K2P 2G3Tel.: (613) 230-7217 | Fax: (613) 230-1270email: [email protected]

©2011

An electronic copy of this report, the fact sheet, and the executive summary are available online at http://www.thrc-crhit.org/en/lmi.

This project is partially funded by the Government of Canada’s Sector Council Program

Report prepared by:

ContentsEXECUTIVE SUMMARY 1The Textile Industry 1Challenge: Defining the Textile Industry 1Challenge: Engaging and Supporting the Development of Canada’s Small Textile Firms 2Challenge: Succession Planning 2Challenge: Recruitment and Selection 2Challenge: Skills Development 3Challenge: A Move to Green and Technical Textiles 4

SECTION 1: BACKGROUND 51.1 Information Sources 51.2 Estimate of the Total Workforce Based on the Industry Survey 61.3 Estimation Methodology 6

SECTION 2: THE TEXTILE INDUSTRY’S ENVIRONMENT 72.1 Operating Environment 72.2 Changes in Firms 8

SECTION 3: THE TEXTILE INDUSTRY PROFILE 93.1 Industry Firms 93.2 Employment in the Textile Industry 133.3 Textile Employment in NAICS Codes Other Than 313-314 133.4 Overview of Industry Size 143.5 Firm Size 153.6 Firm Location 163.7 Sales Revenue Range 183.8 Scope of Operations 18

SECTION 4: THE WORKFORCE PROFILE 194.1 Distribution of Employees by Firm Size 194.2 Occupational Groups in the Textile Industry 214.3 Demographic Profile of the Workforce 224.4 Wages and Salaries 24

SECTION 5: SKILLS SUPPLY AND DEMAND 255.1 Turnover Rates 265.2 Demand for Selected Occupations 275.3 Human Resources Challenges 285.4 Recruitment and Selection 29

SECTION 6: SKILLS DEVELOPMENT 316.1 Adequacy of Skills 316.2 Approaches to Training 326.3 Obstacles to Training 34

SECTION 7: A MOVE TO GREEN TEXTILES 35

SECTION 8: CONCLUSIONS AND RECOMMENDATIONS 378.1 Defining the Textile Industry 378.2 Engaging and Supporting the Development of Canada’s Small Textile Firms 378.3 Succession Planning 388.4 Recruitment and Selection 398.5 Skills Development 398.6 A Move to Green and Technical Textiles 408.7 The Role of the Textiles Human Resources Council 41

APPENDIX A: INDUSTRY SURVEY METHODS 43Survey Sample 43Survey Administration 43Distribution of Survey Responses 43Interview Sample 45Interview Administration 45Interview Participants 45

APPENDIX B: OCCUPATIONAL GROUPS IN THE TEXTILE INDUSTRY 47

APPENDIX C: WORKFORCE ESTIMATES FROM SURVEY RESPONSES 49Industry Estimates 49

APPENDIX D: WORKFORCE ESTIMATES FROM RELATED INDUSTRIES 51Background 51Estimation Methodology 51

APPENDIX E: SURVEY QUESTIONNAIRE AND RESULTS 53Section A: Your Organization 53Section B: Your Workforce 57Section C: Recruitment and Retention 61Section D: Training and Learning 64

APPENDIX F: DEFINITIONS OF TERMS 67Definition of Terms Used in This Report 67

1

EXECUTIVE SUMMARYThis report is part of the Textiles Human Resources Council’s 2010 Labour Market Information Study.

The information included in this report has been sourced from:

• Anenvironmentalscanofpubliclyavailable statistical information;

• Interviewswith50seniorindustryrepresentatives;

• Agroupdiscussionwith20industryleaders;and

• Anindustrysurveyrespondedto,atleastinpart, by 304 textile firms from across Canada and sourced from lists of firms in NAICS 313 and 314. The firms responding to the survey provided a good representation of the geographical spread of firms and of firm size.

The numbers provided in this document are estimates extrapolated from the survey findings to the industry as a whole. The distribution of survey responses plus alignment of survey estimates with data from sources such as the 2006 Census and the Labour Force Survey provides confidence in the validity of the survey estimates.

The Textile IndustryTextile manufacturing is one of Canada’s oldest and mostdiverseindustries.In2008,StatisticsCanadaandthe Canadian Business Patterns Register1 estimated thattherewere2,950textileenterprises2 (which will bereferredtoas“firms”inthisreport),including1,391“employerestablishments”,inNorthAmericanIndustryClassification System (NAICS) 3133 ,3144 ,325225 and 336366.In2010,895ofthesewereidentifiedandapproached for the industry survey.

43,526 number of textile employees in the

textile and associated industries

The number of direct7 and related8 employees in the industryisestimatedtobe43,526.ThenumberofemployeesinNAICS313,314,32522and33636isestimatedtobe23,531,basedonthe2009LabourForceSurvey. Approximately the same number are employed in relatedindustries,themainonesbeingClothing(NAICS315) and Personal and Household Goods Wholesalers/Distributors (NAICS 414). Ontario and Québec continue to be the provinces where the majority (72%) of textile firms arelocated,althoughapproximately28%offirmsarelocated outside these provinces.

The last decade has been a time of major transformation for the Canadian textile industry with significant changes in its international operating environment and a strategic move away from traditional products and markets. Industry leaders have recognized that tomoveforwardandcontinuetosucceed,theymustfocusontechnological,specialized,high-endor value-added products and expand their markets. Firms are also now increasingly working together and pooling their knowledge to develop new products for the marketplace.

Challenge: Defining the Textile IndustryEstimating the number of firms and the industry’s workforce is difficult. The obvious NAICS codes of 313 (Textile Mills) and 314 (Textile Product Mills) do not adequately reflect the full scope of the industry. InadditiontoNAICS313and314,textile-relatedactivitycanbefoundinNAICS315(Clothing),NAICS414 (Personal and Household Goods Wholesalers/ Distributors),NAICS325(ChemicalManufacturing),NAICS 336 (Transportation Equipment Manufacturing) and NAICS 339 (Miscellaneous Manufacturing).

nearly 50% of firms reported having international operations

1 Data supplied by Statistics Canada2 Enterprises include employers in the textile sector but also include businesses with no or an indeterminate number of employees.3 NAICS 313 – Textile Mills4 NAICS 314 – Textile Product Mills5 NAICS 325 – Chemical Manufacturing: Artificial and Synthetic Fibres and Filaments Manufacturing6 NAICS 336 – Transportation Equipment Manufacturing: Motor Vehicle Seating and Interior Trim (10%)7 AllemployeesinNAICS313,314,32522and336368 Thisanalysisisbasedontheextenttowhichemploymentinthreetextilespecificoccupationswasfoundinindustriesoutsideof313and314,basedonCensus2006andSEPHdata. ThethreeoccupationswereSupervisorstextileprocessing(J016),Machineoperatorsandrelatedworkersintextileprocessing(J15)andLabourersintextileprocessing(J316)(AppendixC).

TextilesHumanResourcesCouncil•R.A.Malatest&Associates Labour Market Information Study 2

Recommendation:

• Inordertofullyunderstandthelabourmarket dynamicsaffectingthetextileindustry,textile-relatedactivityinNAICScodes313and314aswellasinotherNAICScodesmustbeexamined.

Challenge: Engaging and Supporting the Development of Canada’s Small Textile FirmsMany surveyed firm representatives noted that their firms and the industry as a whole are just emerging from an extremely challenging period. Some industry leaders have a clear vision of the future; others remain focused on the short term and on achieving stability from which to move forward.

Thetextileindustryiscomprisedoffirmsofallsizes,butincludes a large number of small firms. Based on 2008 StatisticsCanadadata,64%offirmshavefewerthantenemployees (41% of firms have a workforce of one to four employees and 23% employ five to nine employees).

Small firms represent a considerable proportion of the industry’s revenue. The predominance of small organizations poses challenges for the industry in terms ofcommunication,butalsowithrespecttomobilization,increasingspecialization,developingnewproductsandupskilling the workforce.

Nearly 50% of firms included in the industry survey reported doing business internationally and a further 22% reported business activity was national. While doing businessinternationallywasafocusformostlargefirms,just over one third of small firms also did so.

Recommendations:

• Considertheroleofsmallfirmsandhowtoengage andinvolvetheminthestrategicdevelopmentof theindustry.

• Identifywaysinwhichsmallfirmscanincreasetheiraccesstoknowledgeandlearnfrombestpractices andeachother.

Challenge: Succession PlanningGood leadership and planning are crucial to managing changeinfirms.However,theindustry’sleadershipandworkforce are aging and challenges were identified in the context of succession planning.

Approximately 30% of senior and specialist managers are 55 years of age or older. The forecast demand for workers in senior management positions is approximately 20% of existing positions. The implications for leadership within the industry and for succession planning are significant.

Keyoccupationalgroupssuchasmanagement/business,applied sciences and production operationsare also aging,anddemandforworkersforreplacementandexpansion ranges between 11% and 23%.

While the age of the workforce is an issue for many industries,theproportionofworkersintheolderagegroups in the textiles industry is higher than that in the manufacturing industry and in Canada as a whole.

Recommendations:

• Strategicplanningbestpracticesarerequiredto developoptionsforsuccessionplanningforindustryleadership,includingwaystoidentifyanddeveloppotentialleaderswithintheindustryand/ortoattractexternalcandidates.

• Successionplanningbestpracticesandprograms arealsoimportantforoccupationalgroupssuch asmanagement/business,appliedsciencesand productionoperations,andthereisaneedtoattractmoreskilledworkersandupskillexistingworkerstomeetthesignificantlabourdemandsforecastedoverthenextfiveyears.

• Considerdevelopinginternshipswithafocusonkeyoccupations(management/business,appliedsciencesandproductionoperations).

• Considerenablingfirmsandemployeestoimplementknowledgetransferandnetworkingsystems.

Challenge: Recruitment and SelectionThe industry survey estimated turnover rates of 10% over the past 12 months. Approximately two-thirds (64%) of firms reported their turnover rates in the past 12 months had been the same as the previous 12 months. The most common reasons given for staff turnover were layoffs(36%),workersquitting(34%),retirement(16%),and termination (14%). Approximately one-half of the employers in the industry survey felt that turnover rates wereaproblemforthem,butonly4%describedthemasbeing “a major” problem.

3

Over 4,000 estimated replacements

in textile industry by 2015

Firms looking to expand identified current and future challenges in recruiting suitable workers. Industry-wide estimates of combined replacements and expansions total4,000positionsby2015.Whilesomeofthesepositionswillbefilledfromwithintheindustry,additional workers will clearly need to be recruited from outside.

The most commonly used recruitment methods were wordofmouth,newspaperprintadvertisingand, toalesserbutincreasingextent,Internetjobboards.Recruitmentstrategiessuchasincreasedwages,on-sitetraining,flexibleworkinghoursandvarioustypesofbenefitswereusedbymanyfirms.However,21%of firms reported using no recruitment strategies.

Firm representatives felt industry-wide strategies werenecessarytoattractyoung,skilledworkers,andcommonly noted the importance of improving the image of the textile industry among young people. They felt it was necessary to promote the advantages of working in textile manufacturing such as the diversity of jobs and the potential advantages of living and working in smaller urban areas.

Recommendations:

• Foreign-trainedworkerprogramsmaybeanapproachtoattractskilledworkerstothetextileindustry.

• Acampaigntocaptureanddistributebestpracticeprocessesandtoolstoenhancetheimageoftoday’sCanadiantextileindustrytokeytargetaudiencesisrecommended.

• Attractingyouthtotheindustry,especiallythosewithtechnicalskills,iskeytoexpandingtheindustryinthelong-term.Improvinglinkswitheducationalinstitutionsandofferingjointlydevelopedprogramssuchasintern-shipsisoneapproach.

Challenge: Skills DevelopmentThe textile industry has a higher proportion (53%) of female workers (especially in 314 – Textile Product Mills) and immigrant workers (31%) compared with manufacturing as a whole where 29% of workers are female and 28% immigrant workers.

74% of firms provided informal training

and 23% provided formal training

A higher proportion of textiles workers have no certificate,degreeordiploma(27%)whencomparedwith manufacturing as a whole (20%) or the Canadian workforce (15%).

Participants in both the industry survey and the interviews were asked about how they provided training to their staff. Informal training was provided by 74% of firms and formal training by 23%. Small firms are less likely to be able to provide skills development for staff. It is also likely that the absence of well-defined human resources strategies (especially with respect to skills development and retention) reflects the predominance of small firms in the industry.

Intheindustrysurvey,approximately20%ofrespondents felt that the skills of entry-level workers were not adequate. A similar number of respondents felt accesstotrainingforexistingworkerswasnotadequate,and 49% reported a lack of training relevant to their organizations’ needs was a barrier to providing training. Manyfirmsusedin-housetraining,oftenbecausetheythoughttheirtrainingneedswereunique.Inparticular,in-house training was used to develop skills in the use of machinery and equipment in the workplace.

87% of firms reported adequate access to training


Other reported barriers to providing training included difficultiesinreleasingstaff(52%),lackofexternalfunding for training (53%) and financing the training (52%). Lack of programs providing credit towards a diploma or other credential was noted as a barrier by 34% of employers and may be associated with 44% of respondents reporting a lack of interest in training on the part of employees.

Recommendations:

• Bestpracticeincentivestohelpfirmsreleaseemployeesfortrainingshouldbeexplored.

• Anin-depthsurveyofsmallfirms’businessneedswillfurtherhelptoidentifyHR-relatedgapsandsupportthedevelopmentofanindustry-widestructuredapproachtoupskilling.

• In-housementorshipandinformalskillsdevelopment willalwaysbeimportanttotheindustry.Waysto supporttheprovisionofin-housetrainingsuchascontinueduseofWeb2.0technologies,train-the-trainerprogramsorfacilitatingcollaborationbetweenfirmsarerecommended.

• Encouragefirmstoundertakemoreskillsdevelopmentbyidentifyingandpromotingtangibleandintangiblebestpracticeresultsofworkplacelearningandits impactonfirmprofitability.

Challenge: A Move to Green and Technical TextilesA move to “green textiles” and “technical textiles” presents both significant challenges and opportunities for the industry. While there is concern amongst some industry leaders about the competitive implications of governmentpolicyrelatedtoclimatechange,thereisalso growing opportunity for small- and medium-sized firms to engage in technical product lines. Many firms in theindustry,especiallylargefirms,hadstartedplanningfor sustainable activity. Planning was most advanced for efficiencyinmaterialshandlinganduse,energyuseandefficiency and minimizing waste. Although sustainable activitybysmallfirmswasleastadvanced,itistheagilityand nimble positioning characterized by these firms that will potentially allow them to adapt in response to the requirementsoftechnicaltextileproduction,allowingthem to capitalize on these business opportunities.

Recommendations:

• Considerenablingfirmsandemployeesto implementknowledgetransferthroughWeb2.0 networkingsystems.

• Reviewthesurveyfindingsandconsiderthe developmentofHRbestpracticesolutionswithrespecttojobprofilesskillsdevelopmentandcertification programsastheyapplyto“greentextiles”occupations.

• Considerinternshipswithafocuson‘green’and ‘technicaltextiles’bestpracticesandresearchskills.

5

SECTION 1:BACKGROUNDThe Textiles Human Resources Council (THRC) is a non-profit, sectoral partnership created in 1994 to ensure that

workers in Canada’s technology-driven textile industry have the world-class skills the industry demands. By bringing

together textile producers, unions, suppliers, government departments and educational institutions, THRC develops

innovative human resources solutions that respond to established and emerging needs.

THRC’s mission is to assist textile and related manufacturers and its workers achieve business success and

professional development through enhancing workforce performance by enabling the capturing, developing and

sharing of knowledge, skills development programs, and HR best practices through the joint efforts of employers

and employees.

THRC’s priorities are industry-driven and based on extensive labour market research. For the past 17 years, the

identification of industry needs and the development of corresponding programs have been the foundation of

THRC’s workplace skills strategy.

This report is part of THRC’s 2010 Labour Market Information Project which provides the following information to update THRC’s previous sector studies (InvestinginPeople (1996) and Investing inPeopleII (2001)):

• Mapoftheindustry,trendsrelatedtoindustrychange,andcriticalHRandskillsissues;

• Databaseoftextilefirmsdevelopedfromsearchesofdirectories and firm listings and data purchased from infoCanada9;

• Descriptionofthesizeandprofileofthetextile workforce,emergingoccupationsandchanging skills and educational requirements; and

• HRandskillsdemandforecastwhichexamines occupations aligned with the current and future industryrealitiesandtrends,andidentifiescurrentand future gaps between supply and demand for key occupations.

1.1 Information SourcesThe information included in this report has been sourced from:

• Anenvironmentalscanofpubliclyavailable statistical information

- Reports and articles about the industry.

- Analysis of Statistics Canada data from the 2006CensusofCanada,theCanadianBusiness Patterns Database10,theLabourForceSurvey, the Annual Survey of Manufacturers and Logging,GrossDomesticProductbyIndustry, as well as statistical information provided by Statistics Canada.

- Analysis of a custom-data set provided to THRC by Statistics Canada.11

9 infoCanada,adivisionofinfoGroupInc.,isaninternationalproviderofbusinessandconsumerinformationproducts,databasemarketingservices, data processing services and sales and marketing solutions.

10 Data sources from the Industry Canada website http://www.ic.gc.ca/cis-sic/cis-sic.nsf/IDE/cis-sic3131etbe.html.11 This Statistics Canada data was also based on the Canadian Business Patterns Database but additional breakdowns of data were provided

which were not available through the data released on the Statistics Canada website.


• Interviewswith50seniorindustryrepresentatives

- Telephone interviews with 18 executives from mediumandlargetextilefirms,16executives fromsmalltextilefirms,and16representatives oforganizationssuchasTHRCBoardofDirectors, unions,associationsandacademicinstitutions.12

- Participants were asked about past and future changes in the industry and the factors drivingthesechanges,keycurrentandemerging occupations in their firms and any shortages in theseoccupations,recruitmentandretention issues,andtheirapproachestotraining and learning.

• Agroupdiscussionwith20industryleaders

- An in-person group discussion with members of the Textile Technology Roadmap Steering Committee about past and future industry trends.

• AnindustrysurveyoftextilefirmsacrossCanadasourced from lists of firms in NAICS 313 and 314

- Firms were identified by THRC and from lists purchased from infoCanada. Firms were contacted by email and by telephone and asked to complete the industry survey.

Firms in NAICS 313 and 314 were invited to take part in the industry survey. When asked to confirm their NAICS code it became clear that a number offirms,particularlythoseinNAICS31499,were either miscoded to the textile industry or had changed the nature of their business and were no longer making textiles. A total of 55 firms (includingacafé,retail-onlybusinesses,andfirms producing only non-textile goods) were excluded from the industry survey as ineligible because they did not represent textile manufacturing activity.

- The firms responding to the survey provided a good representation of the geographical spread of firms and of firm size.

- The questionnaire included questions about each firm’smarkets,location,thesizeandcomposition oftheirworkforce,workforceturnoverrates andcurrentvacancies,salaries,recruitment andretentionissues,staffskilllevelsandtraining and learning.

Thesurveywascompleted,atleastinpart,by 304 firms representing 34% of identified firms.13 A total of 213 (24% of identified firms) completed the survey fully. The industry survey captured data about8,508employees(36%ofthe2009LabourForceSurvey estimates of the textile industry workforce).

1.2 Estimate of the Total Workforce Based on the Industry Survey Usingthe2006Census,itispossibletoidentifytextileworkers who work in textiles occupations outside of the textile industry (namely NAICS 313 and 314). Based on availableCensusinformation,estimatesweredevelopedof textiles-related employment that can be found in industries outside of NAICS 313 and 314.

Analysis was based on the extent to which employment in three textiles-specific occupations were found in industries outside of 313 and 314. The occupations were as follows:

• Supervisors–textileprocessing(J016);

• Machineoperatorsandrelatedworkersintextileprocessing (J15); and

• Labourersintextileprocessing(J316).

Basedonthe2006Census,thesethreeoccupationsaccounted for approximately 37% of total employment in thetextileindustry.Basedonthisinformation,foreachjobinthosethreeoccupations,therewere1.7relatedjobsinother occupations in the textile industry for each specific textilesjob(i.e.,thoseemployedinJ016,J15,J316).

1.3 Estimation MethodologyAs part of the estimation of related textiles employment inotherNAICScodes,employmentintextiles-specificoccupations across all industries was examined. As notedinTableA-7,inadditiontoemploymentintextilesindustries(313,314),thereisalsoconsiderabletextiles-relatedemploymentinotherindustries,namelyClothing(NAICS315),MiscellaneousManufacturing(NAICS339) and Personal and Household Goods Distribution (NAICS414).Inaddition,employmentintextiles-specificoccupations is also found in a range of other industries. In2006,acrossthethreespecifictextilesoccupations,only slightly more than one-half (54%) of the total numberof24,505individualsemployedinthissectorwereemployedinthetextileindustry(NAICS313,314),with 46% employed outside of the textile industry.

12 A full list is provided in Appendix A. 13 Firms identified and included in the survey.

7

SECTION 2:THE TEXTILE INDUSTRY’S ENVIRONMENTThe last decade has been a time of major transformation for the Canadian textile industry with significant changes

in its international operating environment and a strategic move away from traditional products and markets.

Industry leaders have recognized that to move forward and continue to succeed, they must focus on technological,

specialized, high-end or value-added products and expand their markets. Firms are also now increasingly working

together and pooling their knowledge to develop new products for the marketplace.

2.1 Operating EnvironmentThe last several years have been a time of major change for the textile industry during which it has undergone substantial restructuring. This parallels the situation in Canadianmanufacturingasawhole,althoughthetextile

industry has been among the hardest-hit sectors. Textile shipments decreased 43.5% during the period 2005to2009,comparedtoanoverallmanufacturingdecline of 18.1% (Table 2-1).

Table 2-1: Shipments 2005 to 2009 for the Textile Industry

Industry2005 2009 Change 2005-2009

$ millions $ millions Percent

Textile Mills 3,269.3 1,487.2 -54.5%

Textile Product Mills 2,551.3 1,801.2 -29.4%

All Textiles (313, 314) 5,820.6 3,288.4 -43.5%

All Manufacturing 599,205.9 490,743.1 -18.1%

Source:StatisticsCanada,CANSIM,table304-0014

Although the recent economic downturn may have accelerated the decline in textile industry shipments and employment,thedownwardtrendhadalreadybeguninprevious years. Key contributors have been:

• TheappreciationoftheCanadiandollar,making Canadian exports relatively more expensive in foreign markets;

• Increasingproductioncostsdrivenbyincreasesinthe cost of raw materials and transportation;

• ShrinkageofthedomesticmarketduetothelossofCanadian customers who have closed or moved their operations due to low-wage competition;

• TherapidandunilateraleliminationofCanadian textile tariffs and other trade policy measures that have been detrimental to the industry; and

• Anunlevelinternationalplayingfieldwhere competitors in some countries enjoy advantages not available to Canadian firms.


2.2 Changes in FirmsThe impacts of the changes in the last decade have seen firms adapt by moving away from manufacturing traditional and/or commodity products and switching to technical textiles and value-added products.

“We will never compete with China, Pakistan and India for traditional products, so our firms must offer innovative products if they want

to survive.”

–THRCBoardMember

Firms are also now increasingly working together and pooling their knowledge and expertise to develop new products for an increasingly demanding marketplace. Many industry representatives surveyed echoed a relatively consistent vision of the future for Canadian textiles: a dynamic industry developing and producing high quality technical goods using modern technology and processes.

“The business strategy is to upgrade technology: out with the old and in

with the new.”

–FirmRepresentative

However,someweregenerallymorepessimistic,forecasting that the textile industry would remain stable or continue to see a decline.

It is clear that many firms see themselves as having “weatheredthestorm” and at a turning point after experiencing the ravages of the economic downturn. They are looking to an improving economy for an upturn in firm output and profitability. But some firms have movedoffshore,shutdownallorpartoftheirtextilemanufacturing or disappeared entirely. Downsizing has not been uncommon and firms have utilized strategies such as reduced hours of work to avoid layoffs and the loss of skilled employees.

“There are no more big textile firms… those days are over.”

–Association/Organization

“We try to keep as much of our production in Canada as possible, but this is becoming increasingly difficult.”

–Firm

9

SECTION 3:THE TEXTILE INDUSTRY PROFILETextile manufacturing is one of Canada’s most diverse and oldest industries. Estimating the number of firms and

the industry’s workforce is difficult. The obvious NAICS codes of 313 (Textile Mills) and 314 (Textile Product Mills)

do not adequately reflect the full scope of the industry. In addition to NAICS 313 and 314, textiles-related activity

can be found in NAICS 315 (Clothing), NAICS 414 (Personal and Household Goods Wholesalers/Distributors),

NAICS 325 (Chemical Manufacturing), NAICS 336 (Transportation Equipment Manufacturing) and NAICS 339

(Miscellaneous Manufacturing).

Textile firms today are moving away from commodity products and dependence on the traditional apparel and

footwear markets and into technical products and markets such as construction, personal protection, the military,

sports and leisure industries, boat and shipbuilding, aerospace and medical textiles.

In 2008, data from Statistics Canada identified 2,950 establishments including 1,391 employer establishments directly

involved in textile manufacturing. In 2010, THRC identified 895 textile firms through scans of the Internet, textile

organization membership lists and purchased firm lists.

The number of direct and related textile employees is estimated to be 43,526.14 The number of direct employees was

estimated to be 23,531 from the 2009 Labour Force Survey. Approximately the same number is employed in related

industries. The workforce is primarily full-time: part-time employees make up 6% of the total workforce but 25% of the

workforce in small firms.

The textile industry is characterized by a predominance of small establishments. Based on 2008 Statistics Canada

data, of the 1,391 firms in the industry, 41% have a workforce of one to four employees and an additional

23% employ five to nine employees. Small firms are very important to the industry and represent a

considerable proportion of the industry’s revenue. Approximately one-third reported they do business/sell

their goods internationally.

Most textile firms are located in Ontario and Québec. The location of 41% of firms in rural and small urban areas

has implications for recruitment.

3.1 Industry FirmsEstimating the number of firms and the total textile workforce is difficult. Traditionally the textile industry has been defined as including: Textile Mills (NAICS 313) and Textile Product Mills (NAICS 314). Statistics Canada also considers that Artificial and Synthetic Fibres and

Filaments Manufacturing (NAICS 32522: Chemical Manufacturing),and10%ofthemotorvehicleseatingand interior trim manufacturing sector (NAICS 33636)15

are appropriately counted as part of the textile industry (Chart 3-1).

14 This analysis is based on the extent to which employment in three textile specific occupations was found in industries outside of 313 and 314. ThethreeoccupationswereSupervisorstextileprocessing(J016),Machineoperatorsandrelatedworkersintextileprocessing(J15)andLabourersintextileprocessing(J316).

15 Industry Snapshot: Textiles Manufacturing: 2004 – 2008. http://www.ic.gc.ca/eic/site/textile-textile.nsf/eng/tx03224.html


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3149

1 –

Text

ile B

ag

and

Canv

as M

ills

425 /

2,85

1

3141

2 –

Curt

ain

and

Line

n M

ills

473 /

2,39

0

3149

9 –

All O

ther

Te

xtile

Pro

duct

Mill

s

912 /

3,35

5

3252

– A

rtifi

cial

and

Sy

nthe

tic F

ibre

s and

Fi

lam

ents

Man

ufac

turin

g

51 / 1

,687

3252

2 –

Artifi

cial

and

Sy

nthe

tic F

ibre

s and

Fi

lam

ents

Man

ufac

turin

g

51 / 1

,687

3363

– M

otor

Veh

icle

Pa

rts M

anuf

actu

ring

8 / 1,

080*

*

3363

6 –

Mot

or

Vehi

cle

Seat

ing

and

Inte

rior T

rim

8 / 1,

080*

*

Char

t 3-1

: Tex

tile

Indu

stry

and

Rel

ated

NA

ICS

Code

s

11

Inadd

ition

,the

rearete

xtile-related

employ

eesinotherNAICSindu

strie

s,includ

ingClothing

(NAICS31

5),Persona

land

Hou

seho

ldGoo

ds

Who

lesa

lers

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trib

utor

s (N

AIC

S 41

4) a

nd M

isce

llane

ous

Man

ufac

turin

g (N

AIC

S 33

9).

The

char

t bel

ow (C

hart

3-2

) pro

vide

s an

illus

trat

ion

of th

e “t

extil

e in

dust

ry

univ

erse

” inc

orpo

ratin

g th

e va

rious

NA

ICS

code

s app

licab

le to

the

text

ile a

nd

rela

ted

indu

strie

s.

Char

t 3-2

: The

Tex

tile

Indu

stry

Uni

vers

e

Sour

ces

Num

ber o

f ent

erpr

ises

/em

ploy

ees:

Stat

istics

Cana

da –

Bu

sines

s Reg

ister

- 20

08 (I

ndus

try C

anad

a)

Indi

rect

NAI

CS co

des:

1.

Text

iles H

uman

Res

ourc

es Co

uncil

’s La

bour

Mar

ket I

nfor

mat

ion

Se

ctor

Stud

y – 2

00 in

dust

ry su

rvey

s, Oc

tobe

r 201

0

2. Te

chno

logy

Roa

dmap

for t

he Ca

nadi

an Te

xtile

Indu

stry

pho

ne in

terv

iew

s

with

13

Stee

ring

Com

mitt

ee se

nior

exec

utive

s, Au

gust

201

0

Prim

ary

Text

ile

NAIC

S Co

des

313-

314-

325-

336

1119

Ag

ricul

ture

&

Othe

r Cro

p Fa

rmin

g

3399

2Sp

ortin

g &

Athl

etic

Goo

ds

3231

Prin

ting

& Re

late

d Su

ppor

t Ac

tiviti

es

3162

Foot

wea

r

3334

1Ve

ntila

tion,

Hea

ting,

A/

C, C

omm

erci

al

Refr

iger

atio

n Eq

uipm

ent

3352

10Sm

all E

lect

rical

Ap

plia

nces

122 /

1,09

9

3391

Med

ical

Eq

uipm

ent &

Su

pplie

s2,

610 /

19,2

19

3261

Plas

tic P

rodu

cts

3379

1M

attr

esse

s

2383

30Fl

oorin

g Co

ntra

ctor

s

3379

2Bl

inds

/Sha

des

187 /

2,41

9

3151

1Ho

sier

y &

Sock

Mill

s63

/ 1,1

73

3262

Rubb

er P

rodu

cts

3222

Conv

erte

d Pa

per

Prod

ucts

315

Appa

rel

23Co

nstr

uctio

n

326

Plas

tics &

Ru

bber

336

Tran

spor

tatio

n

337

Furn

iture

&

Rela

ted

Prod

ucts

2373

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ghw

ay, S

tree

t &

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onst

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l & In

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tion

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ract

ors

3152

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en &

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t & S

ew C

loth

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661 /

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37

3151

9Ot

her C

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ing

Knitt

ing

Mill

s21

2 / 2,

182

3152

3W

omen

& G

irls

Cut &

Sew

Clo

thin

g1,

012 /

6,33

5

3222

91Sa

nita

ry P

aper

Pr

oduc

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3366

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&

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ldin

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3364

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spac

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3363

Mot

or V

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63,8

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289 /

5,52

7


The Textile Universe was created based on information identified by industry chief executives during the key informant interviews as well as the 2010 LMI Industry survey. The NAICS codes situated closer to the centre represent a closer relation to the textile industry. This graphic also illustrates the industry’s horizontal integration with other sectors which use textile components or processes in their final products.

EstimatesfromStatisticsCanada,theLabourForceSurvey,the2006CensusandtheIndustrySurveyprovideslightly different estimates of the numbers of firms and employees in the textile industry.

In2008,datafromStatisticsCanadaidentified2,950textileestablishmentsincluding1,391firmsdirectly involved in textile production (Table 3-1).16 A search of firms and a survey of employers was undertaken to gain an accurate picture of the industry in 2010. A total of 895 firms were identified.17

Table 3-1: The Number of Firms (Employer Establishments) in the Textile Industry in 2009

3-Digit NAICS 4- or 5-Digit NAICS2008 Statistics Canada

Number Percent

Textile Industry Primary NAICS (4-Digit NAICS)

313 – Textile Mills

3131 – Fibre, Yarn and Thread Mills 59 4%

3132 – Fabric Mills 169 12%

3133 – Textile and Fabric Finishing

and Fabric Coating 218 16%

All 313 446 32%

314 – Textile Product Mills

3141 – Textile Furnishings Mills 237 17%

3149 – Other Textile Product Mills 672 49%

All 314 909 66%

Textile Industry Related NAICS (5-Digit NAICS)

325 – Chemical Manufacturing

32522 (7%) – Artificial and Synthetic Fibres and

Filaments Manufacturing28 2%

336 – Transportation Equipment Manufacturing

33636 (10%) – Motor Vehicle Seating and

Interior Trim8 1%

Total Establishments1 1,391

1Source: Statistics Canada 2008 Labour Force Survey 2009. Note: Percentages may not add to 100 due to rounding.

16 This accounts for 47% of Textile establishments. Other establishments are categorized as indeterminate or non-employers. Little or no data are available from these establishments in terms of their activities.17 A total of 895 firms were identified and invited to participate in the survey. Some information was provided by 304. Workforce data was provided by 218 and complete surveys were provided by 213.

13

3.2 Employment in the Textile IndustryThe Labour Force Survey (2009) estimated the textile industryworkforceas23,531.However,mostoftheinterviewed industry representatives reported that over thepasttwotofiveyears,18 there had been a decline in their workforce. Information collected through the industry survey provides an updated profile of the industry for firms who responded to the survey.19

The industry survey captured information about 8,508(8,136full-timeand372part-time)employees

(Table 3-2). Industry survey data were used to develop workforce estimates for the total industry.20 The estimateddirectworkforcefortheindustrywas18,816.The workforce consisted of mainly full-time employees (96%);however,thepart-timeworkforcewasmoreimportant for small firms where 25% of the workforce was part-time. The industry also employed an estimated additional1,151workersincontractpositions.Contractworkers was employed by 28% of firms.

Table 3-2: Estimates of the Total Textile Workforce Based on the Industry Survey

FT Workers Survey

Industry Estimate

PT Workers Survey

Industry Estimate Total

Contract Workers -

Survey

Industry Estimate

Small 365 1,948 90 480 2,428 77 411

Medium 3,567 8,822 269 665 9,487 284 702

Large 4,204 6,879 13 21 6,901 23 38

Total 8,136 17,649 372 1,167 18,816 384 1,151

Source: Industry Survey

3.3 Textile Employment in NAICS Codes Other Than 313-314InadditiontoNAICS313,314,32522and33636,thereare a number of other NAICS codes under which textile-relatedemploymentisfound.Usingthe2006Census,estimates were developed of textiles-related employment found in industries outside of NAICS 313 and 314. The analysis was based on the extent to which employment in three textiles-specific occupations was found in industries outside of 313 and 314. An overview of the estimation method is provided in Section 1 and further details regarding the analysis are provided in Appendix D. The occupations were:


• MachineOperatorsandrelatedworkersintextileprocessing (J15); and


A scan of these three textile specific occupations (JO16,J15,J316)revealedthatalmostone-half(44%)of individuals classified to these occupations actually worked outside NAICS 313 and 314. Additionally there are other textile-related jobs that support such workers that should also be included when computing thesizeofthetextileworkforce.Forexample,withinthetextileindustry,itwasfoundthatforeachjobinJ016,J15orJ316therewereanadditional1.7jobsthatsupported these specific occupations. Based on the shareofemploymentaccountedforbyJO16,J15,J316outsideofthetextile-specificindustries,itwaspossibleto develop an estimate of textile-related employment in other industries in Canada. It should be noted that employment estimates presented in Table 3-3 are from theSurveyofEmployment,PayrollandHours(SEPH)anddo not directly align with the Labour Force Survey (LFS).

18 Not all textiles firm interviewees were asked about their workforce in the last two to five years as this question was a later addition to the interview guide in response to information gathered in initial interviews. 19 The Industry survey workforce profile data is based on the sample of firms that completed the survey. Although firms completing the survey were similar to the textiles firms as a whole in terms of

geographical distribution it is possible that the data are biased towards medium- and larger-sized firms. 20 Methods used to provide workforce estimates are detailed in Appendix C.


Table 3-3: Estimated Textiles-Related Employment – Canada 2009 (SEPH Basis)*

NAICS % Share Total Employment Estimated Textiles Related Employment

Textile Industry

NAICS

313 100% 8,609 8,609

314 100% 10,842 10,842

32522 100% 1,687 1,687

33636 10% 10,800 1,080

Related Industries

Clothing 315 19% 27,113 5,151

Misc. Mfg. 339 1% 53,897 539

Personal Household Goods 414 4% 103,444 4,138

All other Industries excluding above industries

.08% 14,349,629 11,480

Total 43,526

*See Appendix D for a full description of the methodology used to obtain these estimates.

3.4 Overview of Industry SizeThe numbers of employees in the textile industry were estimated from information provided by Statistics Canada and from information from the Labour Force Survey. Estimates of the size of the textile-related workforce in other industries has been calculated using data from the 2006 Census and SEPH. These data differ as they are obtained from different sources and at different times. Table 3-4 provides an overview of

estimates of the size of the textile industry using data from different sources.

The direct contributors to the industry consist of between895and1,391firmsthatemploybetween18,816and23,531employees.Textile-relatedemployment in other industries contributes an estimatedfurther21,308textileemployees.21

21 Lower estimates of both employers and employees from the industry survey are likely to be as a result of the exclusion of employers in NAICS 31499 who did not appear to be correctly classified as part of the textile sector.

15

Table 3-4: The Size of the Textile Industry

Source Enterprises/Employers (Firms) Employees Estimated Textile Related

Employment

Statistics Canada (data provided to THRC)* 2,950 Enterprises 22,867** -

Statistics Canada, 2008 1,391 Employers (firms) -

Labour Force Survey, (2009 data) - 23,531 -

Industry Survey 895 Employers (firms) 18,816 -

2009 (Estimated) SEPH - 22,218 21,308

*ProvidedbyStatisticsCanada,2008 ** Includes 32522 and 10% of 33636

3.5 Firm SizeThe textile industry is characterized by a predominance of small establishments (Table 3-5).

Basedon2008StatisticsCanadadata,64%oftotaltextileestablishments employed fewer than ten people. In the

industrysurvey,43%offirmstakingparthadfewerthanten employees. It is not known whether the number of smaller firms has decreased over the past two years or whether they were less likely to be identified and/or take part in the survey.

Table 3-5: The Size of Firms in the Textile Industry

Firm Size313 – Textile Mills 314 – Textile Product

MillsNAICS 32522 &

33636 (10%) Total

Number Percent Number Percent Number Percent Number Percent

Small (0 to 9) 257 19% 614 44% 16 1% 887 64%

Medium (10 to 99) 152 11% 272 20% 10 1% 434 31%

Large (100+) 37 3% 23 2% 2 <1% 62 4%

Total 446 32% 909 66% 28 2% 1,383

Source:StatisticsCanada,2008

It is also notable that 68% of establishments in NAICS 314(TextileProductMills)fallwithinthe“small”range,whereas 58% of establishments in NAICS 313 (Textile Mills) are “small.” Fewer than 3% of Textile Product Mills establishments are considered “large”; the equivalent percentage for Textile Mills is over 8%. Given the substantive differences in survey responses from “small”

and“large”firms,amoredetailedexplorationoftheneeds of these two industry sectors may be warranted.

Fifteen percent of all firms reported having multiple branches (facilities). Almost all (98%) small firms in theindustrysurveyoperatedasinglebranch(facility),compared with 83% of medium-sized firms and 40% of large firms.


3.6 Firm LocationFirms identified in the 2010 list were primarily located inOntarioandQuébec(nearlythree-quarters),witha smaller proportion located in British Columbia and Atlantic Canada and the remainder dispersed in other provinces and territories (Table 3-6).

Textile firms were located in both rural and urban areas. Forty-two percent of firms in the industry survey were locatedinruralorsmallurbanareas,18%werelocatedinurbancentresofbetween100,000and500,000peopleand41%inurbanareasof500,000ormorepeople.

Table 3-6: The Location of Textile Firms

LocationFirms 20081 Firms 20102 Survey Responses3

Total Percent Total Percent Total Percent

Alberta 274 9% 46 5% 17 6%

British Columbia 425 14% 74 8% 24 8%

Manitoba 78 3% 30 3% 9 3%

Atlantic Canada 131 5% 73 8% 34 12%

Ontario 1,154 39% 308 34% 111 39%

Québec 817 28% 343 38% 84 30%

Saskatchewan 58 2% 21 2% 4 1%

Other PTs 5 <1% 0 - 0 -

Total 2,942 895 283

Source: 1Statistics Canada 2008 – all establishments; 22010 list of firms; 3Industry Survey

17

The map below illustrates the distribution of firms across Canada (blue circles) and the distribution of firms who responded to the industry survey (green squares).

Chart 3-3: Location of Textile Firms in Canada in 201022

22 Ashighlightedinthechart,thedistributionofsurveyresponsesgenerallymirroredthatoftextileestablishmentsonthebasisofregionallocation.Forexample:69%ofsurveyswerecompletedbyfirmslocatedinOntarioandQuébec,anditisestimatedthat72%ofalltextileestablishmentsarelocatedinthesetwoprovinces.


3.7 Sales Revenue RangeIntheindustrysurveyfirms,wereaskedtoindicatetheirsales revenue range (Table 3-7). Nearly three-quarters ofsmallfirmsreportedrevenuesbelow$500,000 and over one-half of large firms reported revenues

in excess of $10 million. Most (70%) medium-sized firms reported revenues in the range of $3 million to $10 million dollars.23

Table 3-7: Revenue Ranges for Textile Firms

Size of the Firm

Sales Revenue Range

Less than $50,000

$50,000 to

$499,999

$500,000 to $1 M

$1 M to less than

$3M

$3 M to less than

$5M

$5M to less than

$10M

$10M to less than

$25M

$25M to less than

$50M$50M +

Not Provided

Total

Small 16% 53% 12% 7% 2% 2% 1% 0% 0% 9% 100%

Medium 2% 5% 10% 24% 15% 17% 14% 1% 11% 11% 100%

Large 0% 0% 0% 3% 0% 7% 20% 13% 23% 33% 100%

Total (n=283)

8% 25% 10% 13% 8% 9% 9% 3% 3% 14% 100%


3.8 Scope of OperationsNearly 50% of firms participating in the industry survey reported their scope of operations (the areas where they do business/sell their goods) as international. A further

22% described their operations as national. While international operationswereafocusformostlargefirms,justoverone-third of small firms also operated internationally (Chart 3-4).

Chart 3-4: Scope of Operations of Textile Firms


23 Smallfirmshave1to9employees;mediumfirmshave10to99andlargefirms,100+.

0

10%

20%

30%

40%

50%

60%

70%

80%

Local Regional Provincial National International

12%7% 11%

22%

48%

Small

Medium

Large

All companies

19

SECTION 4:THE WORKFORCE PROFILE

“Every industry is only as successful as the employees in the industry.”


A small number of large firms account for approximately 52% of the industry’s workforce. One-third of industry

workers are unionized, and slightly more than one-half of large firms have unionized employees.

The textile industry has a high proportion of female workers compared with manufacturing as a whole. Female

workers were concentrated in small firms.

Immigrant workers are important to Canadian manufacturing, where 28% of workers are immigrants. In textiles,

this percentage is slightly higher at 31% (although industry survey estimates were lower at 22%).

A higher proportion of textile industry workers (27%) have no certificate, degree or diploma compared to

manufacturing as a whole (20%) or the Canadian workforce (15%). Lower levels of education pose challenges for

skills development along with creating other constraints within the firm.

As with other manufacturing sectors, the textile industry workforce is aging. Approximately 57% of the workforce

is aged 45 years or older. Within the next ten years 19% will reach retirement age. The proportion is even higher for

senior and specialist managers, where 30% of the workforce is 55 or older. The implications for leadership within the

industry and for succession planning are significant.

4.1 Distribution of Employees by Firm SizeAlthoughthetextileindustryischaracterizedbyalargenumberofsmallfirms(44%oftotalestablishments),most(96%)of the workforce is concentrated in the medium and large firms (Chart 4-1).


Chart 4-1: Distribution of Firm Size and Employees


AshighlightedinChart4-2,approximately17%offirmsreported they were unionized. It is estimated that these firms represent a unionized workforce of approximately

34% of the total industry workforce. More of the large firms had unionized workforces than the small firms.

Chart 4-2: Proportion of Firms with any Unionized Employees


0

10%

20%

30%

40%

50%

60%

Small Medium Large

44% 44%

52%

4%

9%

46%

% Companies

% Employees

0

10%

20%

30%

40%

50%

60%

Small Medium Large Total

1%

24%

59%

17%

21

4.2 Occupational Groups in the Textile IndustryInterviewed industry representatives were asked to identify up to three positions that they felt were key for their firms. They were asked to consider occupations thatalreadyexistedintheirorganization,aswellasnew occupations for which they would like to hire. Respondents listed a range of occupations that can be grouped under three general types based on the skills set required:

• Management/Business(management,supervision,sales and business development);

• AppliedSciences(researchanddevelopment, engineers,technicians);and

• Production/Operations(mechanics,machine operators,productionworkers).

These occupations cover a large spectrum of positions within firms and also reflect the production chain. It is

clear that respondents perceived each position within their organization as key to the overall functioning of the firm. Good management and leadership are required to support firm changes. Research and Development staff are important in developing the new technical and value-added products required for expansion. Capable and well-skilled production workers are critical to quality products and customer satisfaction. A good sales team is key to establishing new markets for the new products.

Aspartoftheindustrysurvey,firmswereaskedabouttheir number of employees in eight key occupational groups and whether they outsourced various types of work (Table 4-1). The “other” occupations include assemblers,labourers,tradeshelpers,andothermanagerial and administrative positions. A full list of textile industry occupations is appended (Appendix B).

Table 4-1: Occupational Groups in the Textile Industry

Occupation Group

Firms with Employees in

Occupation (%)

Outsourced Only (% Firms)

Positions (FT and PT)

Percent of Textiles

Workforce

Percent of 313, 314 3363 (10%) in Census 20061

Senior/Specialist Managers 62% <1% 1,077 6% 4.5%

Supervisors 60% 1% 1,193 6% 4.1%

Engineers 21% 8% 183 1% 0.8%

Technicians 43% 6% 614 3% 2.5%

Research and Development 45% 5% 470 2% 1.7%

Mechanics 41% 8% 646 3% 4.8%

Machine Operators 72% 3% 6,979 37% 33.4%

Sales, Business Development 76% 1% 1,732 9% 4.2%

All Other2 86% 1% 5,956 32% 44.0%

Total Workforce 18,8503 100% 100%

Source: Industry Survey 1Percentagesofcorrespondingoccupationalgroupsinthe2006CensusworkinginNAICS313,314and10%of3363.Includedforcomparison,butoccupational groups do not align. Census data were not available to the 5-digit level so estimates were not available for 32522. 2Allotheroccupationsincludesothermanagementoccupations(notseniororspecialist)(A2,A3),tradeshelpers(H8),assemblersinmanufacturing(J2),someoccupationswithintrades,transportandequipmentoperators,labourersinprocessingmanufacturingandutilities(J3),business,financeandadministrative occupations (B). Occupations are described in Appendix B. 3Notethatthetotalworkforceestimatedbyaddingeachoccupationalgrouptypediffersslightlyfromthe18,816workforceestimatedbytheindustrysurvey. The reason for this is the rounding error within the estimates for each occupational group. See Appendix C for method of estimation.


Outsourcingisgenerallyuncommonbutmostprevalent,whereitdoesexist,forEngineersandMechanics,followedbyTechniciansandResearch&Development.

The changes in textile manufacturing in recent years (particularly the move to increasingly technical

production) have led to an evolution and expansion of occupational skills required by firms in the industry. Surveyed firms were asked about whether they currently employed,orintendedtoemployinthenext24months,people in a range of specialist occupational groups (Table 4-2).

Table 4-2: Occupational Groups in the Textile Industry

Occupational Type Currently Employ(% of all Firms)

Seeking to Employ in Next 24 Months(% of all Firms)

Quality and Process Control Coordinators 27% 9%

New Product Developers 23% 6%

Designers 16% 7%

IT Specialists 15% 7%

Laboratory Technicians 12% 2%

Electro-Technicians 11% 4%

Chemists 7% 1%

Source: Industry survey

Morethanone-thirdoffirmsalreadyemployed,orwereseekingtoemploy,qualityandprocesscontrolcoordinators. New product developers were employed

or being sought by 29% of firms. These survey results highlight the industry’s focus on developing quality products for new markets.

4.3 Demographic Profile of the WorkforceThe textile industry has a higher proportion of female and immigrant workers than the manufacturing sector as a whole and relative to the overall Canadian workforce (Table 4-3).

Small firms had a higher proportion of female workers (52%) compared with medium (44%) and large (46%) firms. Female workers represent a greater proportion of 314 – Textile Product Mills workers.

Table 4-3: The Demographic Profile of Employees (Percentages)

Category Female Immigrants

Total Textiles1 53% 31%

Industry Survey2 46% 22%

All Manufacturing2 29% 28%

Total Canadian Workforce2 48% 21%

1Census 2006 2Source: Industry Survey

23

Immigrant workers are increasingly being employed in the textile industry and at the time of the 2006 Census represented31%ofthetextileworkforce,comparedto 28% in manufacturing as a whole and 21% in the total Canadian workforce. In the industry survey firms reported that 22% of their workforce was comprised of immigrant workers. This lower percentage may reflect respondents’ lack of knowledge of the immigrant status oftheirworkforce,confusionbetweenimmigrantsandnewimmigrants,orachangedproportionsince2006.

A number of obstacles to successful workplace integrationofnewimmigrantshavebeenidentified,includingculturaldifferences,languagebarriersandalack of technical skills.24Itshouldbenoted,however,thattheindustry,throughTHRC,isdevelopingtrainingprograms to facilitate the integration of immigrant workers into the textile workforce.

The Canadian textile industry faces considerable demographic challenges from an aging workforce. Forexample,while42%oftheoverallCanadianmanufacturing workforce and 40% of the total Canadianworkforcewas45yearsoldorolder,thetextile industry percentages are markedly higher across all key occupational groups (as detailed in Table 4-4). The percentage of workers 45 years old or older (and therefore retiring within 10 to 20 years) in theSenior/SpecialistManagergroupwas74%,fortheSales/BusinessDevelopmentgroup,itwas71%.Otheroccupational groups ranged from 45% to 61%.

These demographics and challenges faced by textile firms in attracting new skilled workers present significant human resource issues that will need to be addressed by the industry if it is to accomplish its vision of manufacturing high quality technical products for an expanded customer base

Table 4-4: The Age Profile of Workers in Key Occupational Groups (Percentages)

Occupation Type Less than 35 years 35 to 44 years 45 to 54 years 55 years and older

Senior/ Specialist Managers 3% 22% 44% 30%

Supervisors 11% 29% 46% 15%

Engineers 16% 25% 50% 9%

Technicians 23% 32% 38% 7%

Research and Development 22% 26% 37% 15%

Mechanics 9% 31% 45% 16%

Machine Operators 15% 31% 33% 21%

Sales, Business Development 9% 21% 50% 21%

Total Workforce 14% 28% 38% 19%

Source: Industry survey. This question was answered only by employers employing staff in a particular occupational group.

Finally,workereducationlevels,whichcanhaveimportantimplicationsforafirm’soperations,flexibility,versatilityandfuture,alsopresentachallengefortextilemanufacturers.In2006,alargeproportion(63%)ofthetextile industry workforce consisted of workers whose highest qualification was a high school certificate or less (Table 4-5). This compares to 50% for manufacturing as a whole,and41%fortheCanadianworkforce.

The educational level of the workforce has implications withrespecttoupskillingstafftousenewtechnology,tofillnewroles,andtoactivelycontributetonewproduct/newprocess/new market development. While in some areas of the business many employees with long tenure in the industry can substitute “hands-on” experience for formal education,highereducationlevelscanplayameaningfulrole in enhancing a firm’s opportunities for success.

24 GlobalSkillsConnection:AlookintotheIntegrationofSkilledImmigrantsintheTextileIndustry,November2007.


Table 4-5: The Highest Educational Qualification for Workers in Textile and Manufacturing Industries Textiles Manufacturing Canada

No certificate, diploma or degree 27% 20% 15%

High school certificate or equivalent 36% 30% 26%

Apprenticeship or trades certificate or diploma 11% 16% 12%

College, CEGEP or other non-university certificate or diploma

15% 18% 20%

University certificate, diploma or degree 12% 17% 27%

Source: Census 2006

4.4 Wages and SalariesIntheindustrysurvey,employerswereaskedtoprovidethe entry level wages and average wages for eight occupational groups. Table 4-6 below provides the median wages and the range of wages for each group.

The salary ranges reported are very broad within occupational groups. It is not clear whether this is the

result of small/medium/large firms paying different wagesforthesameposition,orbecauseofvaryingunderstandings of what each of the occupational groups cover.Generally,medianwageswerelowerinsmallcompanies than in medium or large ones.

Table 4-6: Entry Level and Average Pay Ranges for Occupational Groups in the Textile Sector

Occupation Type

Entry Level Pay (per annum) Average Pay (per annum)

Median Annual

Range1 Num2 Median Annual

Range1 Num2

Senior/ Specialist Managers

$60,000 $31,200 $100,000 51 $70,000 $37,440 $130,000 40

Supervisors $37,440 $25,000 $70,000 69 $42,375 $25,000 $70,000 51

Engineers $60,000 $41,600 $85,000 23 $62,400 $42,000 $145,000 20

Technicians $35,000 $24,960 $60,000 37 $41,600 $26,000 $55,000 30

Research and Development

$45,000 $30,000 $83,200 36 $52,000 $33,280 $93,600 28

Mechanics $40,000 $24,960 $75,000 39 $45,000 $29,120 $75,000 31

Machine Operators

$24,960 $19,760 $41,600 91 $31,200 $22,880 $41,600 69

Sales, Business Development

$40,000 $22,568 $80,000 66 $50,000 $24,960 $120,000 51

Source: Industry Survey 1Salary range is the 95th percentile range – i.e. excluding the top and bottom 5% 2Number of companies responding to the question

25

SECTION 5:SKILLS SUPPLY AND DEMAND

“The textile industry has a very negative image and employees are not always proud to work in this industry. We have to be proud to work in this industry: it takes a lot of skills.”


Current workforce shortages were identified by firms ready to change and expand. Shortages in sales and

management positions and in technical occupational groups were expected to limit expansion of the industry.

For other firms, the recent economic downturn and the slow recovery have meant there are sufficient numbers of

production workers available at the moment.

The move towards high quality and technical textile production requires a skilled workforce that can adapt to

the changes. Recruitment of skilled workers was reported as a challenge. For example, approximately 40% of

respondents reported they found it difficult or very difficult to hire qualified workers, particularly managers,

technicians and mechanics.

Firms most commonly recruited by word of mouth or by posting positions in print or on Internet boards. Recruitment

and retention strategies most commonly included increased wages, on-site training, flexible working hours and the

provision of benefits.

Respondents felt industry-wide strategies were necessary to attract young, skilled workers to fill positions. They felt

it was necessary to promote the advantages of working in the industry, such as the diversity of jobs, opportunities

for advancement, and the potential advantages of working in smaller urban areas. Firms commonly noted the

importance of improving the image of the industry among young people.

Workforce projections for the next two to five years seemed to be heavily influenced by workforce changes over the last two to five years. For the next two to five years,interviewedtextilefirmrepresentativeshaddifferent forecasts regarding their workforce: about one-third felt that they would continue to see a decline; about one-third felt that employment levels would remain stable; and about one-third felt that there would beanincrease.Therefore,contrastingviewsemergedwhen firm executives and industry leaders25 were asked about whether there were shortages in key occupational groups at the moment and looking forward two to five years.

Industry leaders (including firm executives and organization representatives) talked about a current shortageofworkers,especiallyworkerswithtechnicalskills in emerging occupations.

Whilefeelingoptimisticaboutthefuture,manyfirmrepresentatives reported no workforce shortages. Some firms still had staff working reduced hours to avoid layoffs and felt expansion would come from increasing the hours existing staff worked.

Lookingtothefuture,industryleadersandfirmexecutives reported concerns about their aging workforce and identified succession planning as a priority for the industry.

25Industry leaders refer to leaders of organizations in the textile industry.


5.1 Turnover RatesThe industry survey estimated turnover rates of 10% over the past 12 months. Approximately two-thirds (64%) of employers reported their turnover rates in the past 12 months had been the same as the previous 12 months. The most common reasons given for staff

turnoverwerelayoffs(36%),workersquitting(34%),retirement(16%),andtermination(14%).Approximatelyone-half of respondents considered turnover rates a problem,butonly4%describedthemasbeing“amajor”problem (Chart 5-1).

Chart 5-1: Turnover Rates

4%

19%

12%64%

Increase

Decrease

Stay the same

Don’t know

Not a problem

Somewhat a problem

A problem

A major problem

Don’t know

50%

32%

12%

4%3%

27

5.2 Demand for Selected OccupationsApproximately two-thirds of firms reported difficulty in recruiting workers in key occupational groups (Table 5-1).

Table 5-1: Ease/ Difficulty of Recruitment to Key Occupational Groups

Not at all Difficult Somewhat Difficult Difficult/Very Difficult Don’t Know

Senior/Specialist Managers 16% 24% 43% 18%


Engineers 30% 27% 34% 9%



Mechanics 24% 24% 46% 6%


Sales/Business Development 22% 31% 32% 15%



Intheindustrysurvey,respondentsconfirmedthatwhilethereweresomeunfilledpositions,thesedidnotrepresent a high proportion of the workforce (Table 5-2).Forthosefirmsthatdidreportshortages,theshortageswere perceived to result in firms being:

• Unabletobecompetitive;

• Unabletodevelop/grow;and/or

• Unabletodealwithagingworkforceandretirement.

Foralloccupationslisted,aninsufficientsupplyofworkers,lackoftrainingandcompetitionwithinandoutside of the industry were among the most frequently mentioned reasons for any current shortages of workers. Other points raised in the interviews included the imageandvisibilityofthesector,thelocationof firms and the lack of suitable candidates (including bilingual candidates).

The number of workers forecast for 2015 confirms employers’ comments that they are hoping to rebuild their businesses in the future. Table 5-2 estimates the industry-wide workforce requirements based on employers’ responses to the industry survey. Of note istheforecastdemandforkeyoccupations.Currently,43% of employers felt it was difficult or very difficult tohireseniororspecialistmanagers.Similarly,anincreased demand for supervisors was forecast and 40% of employers reported current difficulties in recruiting supervisors. Employers expected to need 239 more technicians and 67 more engineers than they currently employed: occupational groups where employers already found it difficult to recruit staff.

It should be emphasized that the data presented in Table5-2shouldbeinterpretedwithcaution,givenlimited employer response to the survey. It should also be noted that the employment estimates have been extrapolated from the survey to provide industry-wide estimates.


Table 5-2: Demand for Workers in Key Occupational Groups1

Occupation Type Current Number Unfilled (FT and PT) Replacement & Expansion to 2015

Senior/Specialist Managers 64 414

Supervisors 36 503

Engineers 6 67

Technicians 18 239

Research and Development 24 178

Mechanics 32 147

Machine Operators 279 1,425

Sales/Business Development 52 577

All Other Occupations 298 655

Total Workforce 809 4,205

Source: Industry Survey 1This question was answered by a smaller number of firms (as few as 23 for engineers just under 100 for machine operators). This reflects the fact that not all firms employ these occupational groups and this was taken into account in the method used to extrapolate the findings to the whole industry.

5.3 Human Resources ChallengesThe industry survey confirmed the concerns industry executives voiced in interviews about difficulties in transferring knowledge as workers aged out of the industry. Just over one-half of respondents also reported

challenges in retraining staff and in providing to their existing workforce the new skills required to adapt to new technology and the changing environment.

Table 5-3: Potential Human Resource Challenges in the Next Two Years

A Challenge Not a Challenge Don’t Know

Knowledge Transfer 59% 28% 13%

Retrain/Provide new Skills to Existing Workers 53% 31% 16%

Retaining Key Individuals 44% 40% 16%

Sufficient Management Staff 41% 42% 17%

Utilize Apprenticeships 38% 31% 31%

Managing Retirement 38% 44% 18%


29

5.4 Recruitment and Selection5.4.1 Recruitment Methods

Regardlessofwhethertheywerecurrentlyhiringornot,textile firm representatives who were interviewed were asked about their recruitment strategies.

Inrecentyears,duringthetimetheindustrywasdownsizing,recruitmentoftentooktheformofcontacting another firm that was downsizing and recruiting employees from one to the other.

Themostcommonlyusedmethodstorecruitstaff,reportedbyindustrysurveyrespondents,werewordof

mouth(usedby63%ofrespondents),printadvertising(used by 45% of respondents) and Internet job boards (used by 45% of respondents) (Table 5-4). Government employment centres and placement agencies were also cited by a significant number of respondents. Lesser-usedmethodsincludedhelpwantedsigns,firmwebsites,socialnetworkingtools,tradepublicationadvertising and radio advertising.

Once candidates had progressed to the interview stage,firmsalsohighlightedtheopportunityofinternalpromotion as a desirable feature of the position.

Table 5-4: Recruitment Methods Used by Employers in the Textile Industry

Recruitment Method Percent

Word of mouth 63%

Newspaper print advertising 45%

Internet job board 45%

Government employment centres 38%

Placement agency 29%

Interior or exterior help wanted signs 14%

Your firm website 14%

Social networking sites (Facebook, LinkedIn, etc.) 7%

Trade publication advertising 4%

Radio advertising 3%

Source: Industry Survey Note: Due to multiple responses percentages add to more than 100

5.4.2 Recruitment and Retention Strategies

Textile firm representatives identified a number of challenges in the recruitment and retention of workers. The main challenges cited were a lack of awareness and/oralackofinterestinthetextileindustry,alimitedsupplyofskilledworkersorsuitablecandidates,andthecost and time associated with the recruitment process.

Respondents also provided information about the strategiesthattheyhadinplace,orthatneededtobeinplace,tomitigatethesechallenges.Theseincludedfocusingonindustrybranding,humanresourcesmanagement,innovationandretention.

“Salaries, promotion of the sectors, tools, image – all of these contribute

to motivation, which in turn contributes to retention.”

–Firm

Respondents in the industry survey most commonly reportedincreasedwages,on-sitetraining,flexibleworking hours and benefits as strategies they used to recruit and retain staff (Table 5-5).


Table 5-5: Recruitment and Retention Strategies Used by Textile Industry Firms

All Firms Small Medium Large

Increased wages 46% 49% 56% 45%

Provided on-site training to employees

43% 36% 49% 61%

Implemented flexible working hours 38% 36% 33% 40%

Provided benefits (e.g., health insur-ance, paid vacation, paid sick leave etc.)

38% 19% 52% 61%

Provided other employment benefits (e.g., overtime, statu-tory holiday pay, etc.)

33% 25% 38% 61%

Provided child care 1% 2% 1% 0%

Provided funding for institutional training to employees

18% 11% 19% 61%

None of the above 21% 25% 16% 17%


31

SECTION 6:SKILLS DEVELOPMENT

“The most crucial element is senior management’s commitment to enhancing performance and performance management.”


Knowledge transfer and providing new skills to existing staff were identified as potential human resources

challenges by one-half of the surveyed firms.

The demographic profile of the textile industry workforce and the large number of small firms both present

challenges for skills development. Small firms are less likely to be able to provide skills development for staff.

The predominance of small firms also complicates the development of well defined human resource strategies,

especially with respect to workplace skills development, recruitment and retention.

Survey respondents recognized the advantages of upskilling to the firm as a whole, to the individual employee

and to the workplace environment. While approximately 80% felt they had adequate access to training, many (52%)

identified difficulties in releasing staff to participate in skills development. Other barriers to providing training

included a lack of external funding for training (53%) and financing the training (52%).

In the industry survey, 49% of respondents reported a lack of training relevant to their organization’s needs was a

barrier to providing training. Many firms used in-house training, often because they thought their training needs

were unique. In particular, in-house training was used to develop skills in the use of machinery and equipment

in the workplace.

Lack of programs providing credit towards a diploma or other credential was noted as a barrier by 34% of

respondents and may be associated with 44% reporting a lack of interest in training on the part of employees.

6.1 Adequacy of SkillsIntheindustrysurvey,onlyarelativelysmallpercentage(between 7% and 34% depending on the occupational group) of respondents reported that the skills of entry-level workers were not adequate (Table 6-1). Entry-level skills were most often considered to be adequate for engineers (93%); and least often for machine operators (66%). The proportions of employers who felt entry-level skills were adequate for other occupational groups ranged from 76% to 86%.

Respondents from large firms felt that new employees entering the textile industry needed generic training suchassafetytraining,generaltrainingabouttheindustry(terminology,processes,sub-sectors,etc.)and process and operational economics training (understanding the production chain and ripple effect

of mistakes). Other respondents talked more about the needtocombinein-housetrainingwithothertraining,inparticularonlinetraining,toensurethatthenewemployees were adequately trained and could transition into the textile industry.

The majority of survey respondents felt they had adequate access to training for existing workers. The responses for various occupational groups ranged from a low of 78% (for technicians) to a high of 88% (for sales/businessdevelopment).Itshouldbenoted,inthiscontext,thatmanyfirmshaveaccesstoandhavetaken advantage of THRC in-plant and online training programs. Feedback from participants in these programs has been consistently positive.


Table 6-1: The Skill Levels of Workers and Access to Training

Occupation TypeSkill Level of Entry Level Workers Access to Training for Existing Workers

Adequate Not Adequate Adequate Not Adequate

Senior or Specialist Managers 86% 14% 85% 15%


Engineers 93% 7% 82% 18%



Mechanics 76% 24% 81% 19%


Sales, Business Development 82% 18% 88% 12%


6.2 Approaches to TrainingParticipants in both the industry survey and the interviews were asked about how they provided training to their staff. Informal training was provided by 74% of firms and formal training by 23%. Small firms were not surprisingly less likely to offer any training (formal or informal) to their employees.

Formaltrainingwasdescribedasperiodicreviews,off-site training or training provided by someone from outside the organization. Informal training included mentoring or in-house job shadowing. External training was most often provided for more technical workers ortoaddressaspecificneed(e.g.,management,leadership).

Firm-specific training was a commonly used approach and included knowledge transfer from existing employees (and particularly from retiring employees) aswellascross-training,in-housetrainingandknowledge transfer:

“Our work is specialized, so we need to provide in-house training.”

-Firm

Firm-specific training was also used as a method to provide back-up staff with the skills required to operate machinery.However,firmsdidnotnecessarilyknowthe most effective ways of delivering in-house training and skills transfer. Some mentioned they had sought adviceonhowtodothis.Forallfirms,andinparticularsmallfirms,increasingaccesstotrain-the-trainertypeprograms may be an effective strategy.

“Much of the workforce is low skilled – many firms are trying to cross-train their

workers but, because of their low level of education, this is a challenge. Some

workers lack the educational foundation for technical training.”


Interviewed representatives from small firms suggested that their training was more limited and consisted primarily of in-house training and mentoring. None identified external training approaches.

Improved links with educational institutions to ensure the supply of workers with the skills required was also mentioned.

33

“Tap into what other countries have to offer in terms of qualified textiles engineers. Many foreign educational institutions still offer full- blown textile engineering degrees… .

We should have programs that link firms with these schools and their new graduates to meet our HR needs.”


To get a better sense of what textile firms perceive as thebenefitsofatrainingculture,respondentsfromlarge firms were asked how their firm determined the effectiveness of any investments made in training. Respondentsnotedtheadvantagesforemployees,

the flow-on benefits for the firm and the improvements totheworkplaceenvironment,includingimprovedretentionofworkers,asthemajorbenefitsassociatedwith their investment in training (Chart 6-1).

Chart 6-1: Training Benefits

Employee

Satisfaction with training

Skills increase

Personal goals are set and met

Workplace environment

Motivation increases

New skills and knowledge trickle down to other employees

Staff retention

Firm

Productivity levels increase

Quality levels increase (fewer rejected products, fewer

defects)


Largefirmsusefeedback,evaluationsandsurveysof employees as well as monitoring production and quality levels to assess the extent to which the training contributed to the expected outcomes or results.

6.3 Obstacles to TrainingAlthoughasmentionedearlier,ahighpercentage of firms (87%) reported having adequate access to training,manyrespondentsidentifiedobstaclestoproviding training.

The obstacles cited most often by respondents were difficultiesinreleasingstaff(52%),lackofexternalfunding for training (53%) and difficulties in financing training (52%).

Nearly one-half of respondents also noted a lack of training relevant to their organizations’ needs. This is consistent with comments provided in interviews that executives felt their needs were specific and therefore focused on providing in-house training. An in-depth survey of the training needs of firms would provide more information about specific needs and facilitate the development of training programs to meet these needs.

Smallfirmswereaskedwhatsupporttheyneeded,asasmallemployer,forhumanresourcesmanagement,trainingandlearning.Whilenotallcommented,manyof those who did stressed a need for financial support orcompensation(e.g.,wageortaxrebate)forprovidingin-house training or sending workers to be trained.

Table 6-2: Reported Obstacles to Training

A Barrier Not a Barrier Don’t Know

Difficulties in releasing staff 52% 32% 16%

Lack of funding for training from sources other than your firm 53% 27% 19%

Financing the training 52% 35% 12%

Lack of training relevant to organizations needs 49% 32% 18%

Lack of resources to implement training in-house 47% 39% 14%

Lack of interest in the part of employees 44% 40% 16%

Lack of programs providing credit toward a diploma or other credential 34% 38% 28%

Lack of Infrastructure to offer training in-house 32% 53% 14%

Lack of commitment from employer/ management to support a learning culture 24% 63% 13%


Approximately two-thirds of firms reported that Internet access was available for their employees for the purposes oftraining.Thispresentsanopportunitytodelivertrainingprogramselectronically,andwouldaddressmanyofthelogistical concerns raised with respect to program implementation.

35

SECTION 7:A MOVE TO GREEN TEXTILESA move to “green textiles” is both a key challenge and an opportunity for the industry. Concerns have been raised by

industry leaders about the competitive implications of government policy related to climate change. Many firms in

the industry, especially the large firms, had started planning for sustainable activity. Planning was most advanced for

efficiency, in materials handling and use, energy use and efficiency and minimizing waste.

As more scientific information about global warming accumulates,climatechangeisemergingasone of the greatest environmental challenges of the 21st century. A move to “green textiles” is a very complex phenomenonand,inthiscontext,theCanadiantextileindustry currently faces a combination of challenges and opportunities as it increases its sustainable development26 efforts.

Although carbon footprints and efforts to reduce emissions are emerging as global policy preferences and haveanimpactontheindustryworldwide,thetextileindustry would be wise to focus on efficient water use as many textile processes and finishing activities are water intensive. Given the uncertainty of developments with respect to international agreements on emission reductions,itisstilluncleartowhatextentreductionswill be mandatory or voluntary for the Canadian textile industry,however,itseemsapparentthatasignificantimpact can be made by addressing water use as this isamajorareaofresourceconsumption.Whatisclear,however,isthat“goinggreen”hasapricetagandrepercussions for the industry’s competitiveness vis-à-vis international competitors. Industry leaders raised cautionary concerns that any regulatory requirements be formulated in consultation with industry and implemented in a manner that does not undermine competitive advantage.

Another aspect of a “green” industry is Extended Producer Responsibility. Extended Producer Responsibility is an environmental policy approach in which a producer’s responsibility for a product is extended to the post-consumer stage of its life cycle. IntheCanada-wideactionplan,27 the textile and carpet industries were identified as sectors in which compliance with Extended Producer Responsibilities would be expected. Compliance may require staff with additional training or skills. The extent of planning for sustainable textiles was explored through the industry survey (Table7-1).Manytextilefirms,especiallythelargefirms,have started planning for sustainable activity. Planning was most advanced for efficiency in materials handling anduse,energyuseandefficiency,andminimizingwaste. The challenge will be to include the substantial number of small establishments that make up the textile industryinthemovetogreentextiles.Forthisreason,various initiatives and programs are being implemented to help small firms maximize productivity and facilitate the research and development required to produce new value-added textile products.

26Sustainabledevelopmentisdevelopmentthatmeetstheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds.ExcerptfromtheBrundtlandReport,1987 cited in the Strategic Guide for Sustainable Development. Canadian Textile Sustainable Development Working Committee.

27Canadian Council of Ministers of the Environment. Canada-wide Action Plan for extended producer responsibility. 2009


Table 7-1: Firm Participation in Sustainable Activities

Activity

All Firms (%) Firms with Some Planning (%)

No Planning Some Planning Don’t Know Small Medium Large

Materials Use and Handling Efficiency 10% 73% 17% 58% 86% 85%

Energy Use and Efficiency 21% 62% 18% 55% 63% 85%

Minimizing Waste 15% 61% 24% 47% 69% 90%

Environmentally Preferable Materials and Supplies

22% 57% 21% 49% 65% 60%

Green Product and Packaging Design 21% 52% 27% 43% 59% 60%

Water Use and Efficiency 29% 37% 34% 30% 35% 80%

Green Business Travel and Meetings 35% 33% 32% 27% 36% 45%

Employee Dedicated to Environmental Strategy

32% 31% 37% 25% 32% 55%

Air-reduced Carbon Emissions 31% 27% 42% 19% 30% 50%


37

SECTION 8:CONCLUSIONS AND RECOMMENDATIONSThe last several years have been a time of major change for the textile industry, during which it has undergone

substantial restructuring and realignment. Generally, textile firms and stakeholders feel the worst is over and

that the industry has stabilized after a difficult period. International competition remains an ongoing challenge,

but industry leaders have recognized the need to move away from commodity products and traditional markets

and toward more technical and specialized offerings. These changes have substantial repercussions for the textile

industry workforce, and will have to be addressed in order for the industry to complete its transformation and be a

viable player in the international marketplace.

The industry survey provided up-to-date information about the textile workforce and the human resources

challenges facing the textile industry. The interviews with firm representatives and industry leaders generated an

opportunity for discussion about the current situation of the industry and where it is heading, as well as the support

needed for the industry to grow.

8.1 Defining the Textile IndustryEstimating the number of firms and the total textile workforce is difficult. Traditionally the textile industry has been defined as including Textile Mills (NAICS 313) and Textile Product Mills (NAICS 314). Industry Canada also considers that Artificial and Synthetic Fibres and FilamentsManufacturing(NAICS32522,comprising7%oftotalNAICS325:ChemicalManufacturing),and 10% of the motor vehicle seating and interior trim manufacturing industry (NAICS 33636)28 are appropriately counted as part of the textile industry.

TheseNAICScodesconsistofbetween895and1,391employerestablishmentsthatemploybetween18,816and23,531employees(dependingonthedatasource).Inaddition,thereareanundefinednumberoftextile-relatedemployeesinotherNAICSindustries,includingClothing(NAICS315),PersonalandHouseholdGoodsWholesalers/Distributors (NAICS 414) and Miscellaneous Manufacturing (NAICS 339). It is estimated that these related industries employ a further approximately 21,000textileworkers.

The industry survey has highlighted the need to reconsider the extent of the textile industry universe. Comprehensive information about the industry’s workforce is essential for strategic development and to monitor and evaluate changes and trends.

Recommendation:

• Thetextileindustryisundergoingsubstantial changeandthereisaneedforcomprehensivedataspanningdirectandrelatedNAICScodestoadequatelyunderstandthelabourmarketdynamicsaffectingtheentireindustry.

8.2 Engaging and Supporting the Development of Canada’s Small Textile FirmsThe Canadian textile industry is just emerging from a challenging period reflecting significant changes in its international trade environment and the pervasive domestic and global economic downturn. While some industryleadershaveaclearvisionofthefuture,others are continuing to grapple with how to position themselves for renewed success after difficult times. Intheshortterm,theirfocusisonachievingstability.However,ingeneral,intervieweesforecastedacontinued growth for the next two to five years: those who had noted a decline in their workforce expected to become stable; those who had remained stable expected a slight increase. Information from the industry survey suggested that firms had reached a turning point and were optimistic about the future. Chart 8-1 summarizes the factors affecting changes in the industry and strategies to transition to non-traditional products.

28 Industry Snapshot: Textiles Manufacturing: 2004 – 2008. http://www.ic.gc.ca/eic/site/textile-textile.nsf/eng/tx03224.html


“We will see fewer production employees but more qualified personnel.”


Chart 8-1: A Changing Industry

The textile industry includes a large number of small firms.Basedon2008StatisticsCanadadata,64%offirmshavefewerthantenemployees(41%offirms,haveaworkforce of one to four employees and an additional 23% employ five to nine employees). Most of the workforceis,however,concentratedinafewlargefirms.

Smallfirmsareimportanttotheindustry.Combined,they represent a considerable proportion of the industry’s revenue. Approximately one-third reported doing business internationally. The predominance of small firms also poses challenges for the industry in termsofcommunication,mobilization,increasingthespecializationoftheindustry,developingnewproductsand upskilling the workforce.

Recommendations:

• Considertheroleofsmallfirmsandhowtoengageandinvolvetheminthestrategicdevelopmentoftheindustry.

• Identifywaysinwhichsmallfirmscanincreasetheiraccesstoknowledgeandlearnfrombestpracticesandeachother.

8.3 Succession PlanningGood leadership and planning are crucial to managing change.However,theindustry’sleadershipisaging. Approximately 30% of senior and specialist managers are 55 years of age or older. The forecast demand for workers in senior management positions is approximately 20% of existing positions. The implications for leadership within the industry and for succession planning are significant.

Traditional Products(Horizontal production)

Non-traditional Products(Technological, specialized,

high-end or value-added products)

Research and Development(Researchers, Engineers,

Technicians, etc.)

Commercialization(Management,

client relations, sales)

Innovation Leadership

Technological advances

Demand for different products

Changes in manufacturing costs

Training needs for new workers

Employee demographics

Other pressures

Economic and Industrial Pressures Affecting Change

Shift in culture/mind frame

Training programs for existing workers

Training programs for new skilled workers

Re-branding of industry to attract skilled workers

Implementation of human resources to retain workers

Facilitating the Transition to Non-traditional Products

39

“We need leaders with a “vision” who are able to face the challenges of the industry.”


Keyoccupationalgroupssuchasmanagement/business,applied sciences and production operations are also aging,anddemandforworkersforreplacementandexpansion ranges between 11% and 23%.

Recommendations:

• Enablingfirmsandemployeestoimplementknowledgetransferandnetworkingsystemsshouldbeconsidered.

• Strategicplanningbestpracticesarerequiredto developoptionsforsuccessionplanningforindustryleadershipincludingwaystoidentifyanddeveloppotentialleaderswithintheindustryand/ortoattractexternalcandidatessuchasforeign-trainedworkers.

• Successionplanningbestpracticesandprograms arealsoimportantforoccupationalgroupssuch asmanagement/business,appliedsciencesand productionoperations,andthereisaneedtoattractmoreskilledworkersandupskillexistingworkerstomeetthesignificantlabourdemandsforecastedoverthenextfiveyears.

• Considerdevelopinginternshipswithafocusonkeyoccupations(management/business,appliedsciencesandproductionoperations).

8.4 Recruitment and SelectionWhileallworkersareessentialtoafirm’ssuccess,themove towards more technical and specialized products requires an increase in the numbers of skilled workers in the industry workforce. The industry can meet these needs by developing the skills of existing workers in the industry or by recruitment from outside the industry. Both options present challenges.

While the proportion of current unfilled positions is relativelylow,firmsareforecastingincreasesintheorderof 20% for staff in key occupational groups. Industry-wide estimates based upon survey response identify a needtofillapproximately4,000positionsby2015asaresult of a combination of replacements and expansions.

Recruitment from outside of the industry requires competition with other industries. Industry leaders felt that improving the image of the textile industry and the job opportunities therein would facilitate recruitment ofyoungworkers,especiallythosewiththetechnicalskills required. Firm representatives felt industry-wide strategieswerenecessarytoattractyoung,skilledworkers,andcommonlynotedtheimportanceofimproving the industry’s image among young people. They felt it was necessary to promote the advantages of workingintheindustry–suchasthediversityofjobs,theopportunitiesforadvancement,andthepotentialadvantages of working in smaller urban areas. There is also a need to improve the links with educational institutions and to ensure a flow of new graduates through to the textile industry. An increased use of scholarships,apprenticeshipprogramsandotherprograms would attract more youth to textile jobs.

The recruitment methods most commonly used by textilefirmswerewordofmouth,newspaperprintadvertisingand,toalesserbutincreasingextent,Internet job boards. Recruitment strategies such as increasedwages,on-sitetraining,flexibleworkinghours and various types of benefits were used by many firms.However,21%offirmsreportedusingnoneoftherecruitment strategies listed in the survey.

Recommendations:

• Acampaigntocaptureanddistributebestpracticeprocessesandtoolstoenhancetheimageoftoday’sCanadiantextileindustrytokeytargetaudiencesisrecommended.

• Attractingyouthtotheindustry,especiallythosewithtechnicalskills,iskeytoexpandingtheindustryinthelongterm.Improvinglinkswitheducationalinstitutionsandofferingjointlydevelopedprogramssuchasintern-shipsisoneapproach.

• Foreign-trainedworkersprogramsmaybeanapproachtoattractskilledworkerstothetextileindustry.


8.5 Skills Development

“The first step is to attract new employees, then we can focus on training.”


Ashifttotechnicalproducts,anagingworkforceandthe need for additional workers to meet the needs ofexpansionaddpressuretotheexistingworkforce,resulting in a need for skills development to ensure a supply of skilled workers equipped to support industry changes,andworkersingeneraltoreplaceworkers who are leaving the industry due to retirement.The current production workforce includes a higher proportion of workers with only high school level qualifications than that found in other manufacturing sectors. Developing the skills of these workers to handle more technical production processes and new machinery requires a focus on suitable skills development programs.

Smaller firms are less likely to be able to provide skills development for staff. It is also likely that the predominance of small firms results in an industry that doesnothavewell-definedhumanresourcestrategies,especially with respect to training and retention.

Intheindustrysurvey,manyrespondentsfeltthatthe skills of entry-level workers were not adequate. A similar number of respondents felt access to training for existing workers was not adequate. Nearly one-half of respondents saw a lack of skills development programs suitable for their business as an obstacle to training. There were other challenges in training and recruiting newworkers,includingfreeingstafffortrainingandfinancing training programs. Many firms used in-house training,oftenbecausetheythoughttheirtrainingneedswereunique.Inparticular,in-housetrainingwasusedtodevelop skills in the use of machinery and equipment in the workplace and 49% reported a lack of training relevant to their organization’s needs was a barrier to providing training.

Lack of programs providing credit towards a diploma or other credential was noted as a barrier by 34% of respondents,andmaybeassociatedwith44%offirmsreporting a lack of interest in training on the part of employees.

Recommendations:

• Bestpracticeincentivestohelpfirmsreleaseemployeesfortrainingshouldbeexplored.

• Anin-depthsurveyofsmallfirms’businessneedswillfurtherhelptoidentifyHR-relatedneedsandsupportthedevelopmentofastructuredindustry-wide approachtoupskilling.

• In-housementorshipandinformalskillsdevelopmentwillalwaysbeimportanttotheindustry.Waystosup-porttheprovisionofin-housetrainingandthecontin-uedincreaseinuseofWeb2.0technologies,train-the-trainerprogramsorfacilitatingcollaborationbetweenfirmsisrecommended.

• Encouragefirmstoundertakemoreskillsdevelopmentbyidentifyingandpromotingtangibleandintangiblebestpracticeresultsofworkplacelearninganditsim-pactonfirms’profitability.

8.6 A Move to Green and Technical TextilesA move to “green textiles” and “technical textiles” presents both significant challenges and opportunities for the industry. While there is concern amongst some industry leaders about the competitive implications of governmentpolicyrelatedtoclimatechange,thereisalso growing opportunity for small- and medium-sized firms to engage in technical product lines. Many firms in theindustry,especiallylargefirms,hadstartedplanningfor sustainable activity. Planning was most advanced for efficiencyinmaterialshandlinganduse,energyuseandefficiency,andminimizingwaste.Althoughsustainableactivitybysmallfirmswasleastadvanced,itistheagilityand nimble positioning characterized by these firms that will potentially allow them to adapt in response to the requirementsoftechnicaltextileproduction,allowingthem to capitalize on these business opportunities.

41

Recommendations:

• ConsiderenablingfirmsandemployeestoimplementknowledgetransferthroughWeb2.0networking systems.

• Reviewthesurveyfindingsandconsiderthedevelop-mentofHRbestpracticesolutionswithrespecttojobprofiles,skillsdevelopmentandcertificationprogramsastheyapplyto“greentextiles”occupations.

• Considerinternshipswithafocuson‘green’and ‘technicaltextiles’bestpracticesandresearchskills.

8.7 The Role of the Textiles Human Resources CouncilTHRC has a key role in supporting changes within the industry,especiallyassomanyofthechangeshaveimplications for upskilling or attracting new workers to textile manufacturing. Industry leaders and firm executives felt that THRC’s role is to:

• Providesupporttotheindustry(primarilymentionedby firms) by enabling knowledge transfer to occur that drives human capital to create value through innovation;

• Processanddisseminateinformationandfacilitateknowledge;

- Understandandseekpatterns(e.g.,whatworkswell andwhatdoesnot),

- Identifyneedsandbestpractices,

- UseWeb2.0technologiestotransferknowledge, especiallyforsmall-medium-sizedfirms,and

- Develop strategies to address industry’s business priorities.

• Facilitateindustrycommunications(government,firms,unions);and

• Improvetheimageoftheindustry.

Survey respondents were positive about THRC’s training programs. Some recommendations for enhancement included:

• Moretailoredtrainingprograms;

• Keepingtheprogramsshort(nottime-intensive);and

• Insuringthattheprogramsareeasytomanageandimplement.

43

APPENDIX A: INDUSTRY SURVEY METHODSThe Industry Survey

Survey SampleA list of firms was compiled from:

• DataprovidedbyTHRC;

• ListsofemployerspurchasedfromInfoCanada;and

• FirmnamesprovidedbyStatisticsCanada.

Thelistsaccessedgeneratedatotalof1,500firmnames.However,thelistscontainedconsiderableduplicationand contact information was frequently inaccurate or missing. After removal of duplicate firms and firms who did not appear to be correctly coded as textile manufacturers,thefinallistcomprised895firms.

DatafromStatisticsCanadaidentifiesatotalof1,391textile firms with employees in 2008. Firms and industry leaders spoken to during the study reported a reduction in the number of textile firms over the past few years. It isthereforelikelythatthedifferencebetweenthe1,391firms identified in 2008 and the 895 firms identified in 2010 is a result of:

• Firmclosures;

• FirmsincorrectlyclassifiedunderNAICS313and314;and

• Inabilitytoidentifyfirms(mostlikelytobe smaller firms).

Survey AdministrationWhereanemailaddresswasavailable,theinitialapproach to firms was through an email from THRC highlighting the value of the survey to the industry and inviting participation. This introductory email was followed with an email containing an electronic link to an online survey form. Firms were sent up to four email reminders.Followingeachemailreminder,firmsweretelephoned and offered the opportunity to complete the survey online.

Whereanemailaddresswasnotavailable,firmswerecontacted by telephone. The study was explained and they were offered the option of completion by telephone or if preferred they were sent a link to the online survey. Completion of hard copy questionnaires was also provided as an option.

The questionnaire developed for the survey is provided in Appendix E. The questionnaire was available in both French and English. Firms were also provided with the option of completing the survey with a bilingual surveyor.

Distribution of Survey ResponsesThe industry survey consisted of four sections. The entiresurveywascompletedby213firms.However,information from partial survey completions was used when employers completed an entire section:

• SectionA:TheFirmwascompletedby304firms;

• SectionB:TheWorkforcewascompletedby 241 firms;

• SectionC:RecruitmentandRetentionwas completed by 213 firms; and

• SectionD:TrainingandLearningwascompleted by 213 firms.

The 241 firms completing the Workforce section of the surveyrepresented8,508employees.

The firms completing the survey provided a good representation of the textile industry. The geographic distribution of survey completions was similar to the distribution of the database of identified firms (Table A-1).


Table A-1: Geographical Distribution of Textiles Firms

LocationFirms 20081 Firms 20102 Survey Responses3

Total Percent Total Percent Total Percent

Alberta 274 9% 46 5% 18 6%

British Columbia 425 14% 74 8% 24 8%

Manitoba 78 3% 30 3% 10 3%

Atlantic Canada 131 5% 73 8% 38 13%

Ontario 1,154 39% 308 34% 119 39%

Québec 817 28% 343 38% 90 30%

Saskatchewan 58 2% 21 2% 5 2%

Other PTs 5 <1% 0 - 0 -

Total 2,942 895 304

Source: 1Statistics Canada 2008 – all establishments; 22010 List of Firms; 3Survey responses

A comparison of the NAICS codes between survey respondents and the 2008 Statistics Canada list of firms is shown in Table A-2. While there was a lower proportion ofsurveyresponsesfromsmallfirms,particularlythose

inNAICS314,someofthisdifferenceislikelytobedueto exclusion of non-qualifying firms from the survey as many of these firms were in NAICS 31499 (other type of textile mill).

Table A-2: Distribution of Survey Response by NAICS Code and Firm Size

NAICS Code Company SizeEmployers 2008 Survey Employers

n Percent n Percent

NAICS 313 Small (0-9) 257 19% 43 7%

Medium (10-99) 152 11% 63 21%

Large (100+) 37 3% 14 5%

All 313 446 32% 120 40%

NAICS 314 Small (0-9) 614 44% 73 24%

Medium (10-99) 272 20% 64 21%

Large (100+) 23 2% 10 3%

All 314 909 66% 147 49%

Other NAICS Small (0-9) 16 1% 4 1%

Medium (10-99) 10 1% 3 1%

Large (100+) 2 0% 6 2%

All Other 28 2% 13 4%

Total 1,383 3011

1No NAICS Code was provided by three firms

45

The In-Depth Interviews

As part of the LabourMarketInformationProject,aseries of key informant interviews was carried out. Key informant interviews are semi-structured discussions led by a researcher. The purpose of such interviews is to collect anecdotal evidence and to provide insight to other lines of evidence. Interviews also provide examples or quotes that can be used to enrich reporting. This document presents an overview of the interviews and the findings.

Interview SampleA target of fifty interviews was set for this project and a list of one hundred potential participants was developed by the Textiles Human Resources Council (THRC) and providedtoR.A.Malatest&AssociatesLtd.Thislistincluded a range of respondent types (including Board of DirectorMembers,CommitteeMembers,Associations/ Organizations and Textile Firms).

Interview AdministrationAll contacts in the key informant interview sample were sent an introductory note explaining the project and why their participation was important. Potential participants were then contacted by telephone by a representativeofR.A.Malatest&AssociatesLtd.toschedule a time for the interview.

Ifthepersonwasnotin,amessagewasleftandafollow-up email was sent. This was followed by one to two additional telephone calls in an attempt to reach the contact. Those who declined to participate were excluded from further follow-ups.

When potential participants indicated an interest in participating,aninterviewwasscheduledattheirconvenience and was carried out in either English or French,basedonthestatedpreferenceatthetimeofscheduling. Three interview guides were developed for this project:

1. Textilefirms–originalguide,principallyusedwithrepresentatives of large firms.

2. Textilefirms–revisedguide,principallyusedwithrepresentatives of micro and/or small firms.

3. Other organizations – used with representatives of committees,associationsandorganizations.

All participants were provided with a copy of the interview guide prior to the interview. The interview length ranged from approximately 20 to 45 minutes depending on participants’ awareness of the issues being discussed.

Interview ParticipantsThe 50 interviews were distributed across the three interview guides as shown in Table A-3 below.

Table A-3: Key Informant Interviews

Interview Guide Count Percent

Small Textile Firms1 10 20%

Medium Textile Firms 18 36%

Large Textiles Firms 6 12%

Other Organizations2 16 32%

Total 50 100%

1 Basedonthenumberofemployeesreportedduringtheinterviews,theseorganizationsrangedfrom1to18totalemployees. 2 BoardofDirectorsandCommitteeintervieweesmayberepresentativesoffirms.Whenthatwasthecase,theTextilesFirminterviewguidewasusedand these are counted as “textiles firms.” Representatives from other organizations included: Conestoga College; EMC Canada; The Canadian Textile Association; United Food and Commercial Workers Canada; University of Manitoba; Accord Centre-du-Québec; Accord Créneau Montérégie; Carte routière technologique; Commission scolaire de la Beauce-Etchemin; CSMO Textile; Ecole de technologie supérieure; Industrie Canada; Preventex; INVISTA Canada Firm; Stedfast Inc.; Centrale des syndicats démocratiques (CSD); T.U.A.C. – Conseil canadien du textile et du vêtement; UTIS – une division de l’UES 800; MIP Inc.; and Seaway Yarns Limited.


Textilefirminterviewparticipantsweregenerallyrepresentativeofthetextilesindustryintermsoflocation,firmsizeandtype of firm (Table A-4).

Table A-4: Profile of Textiles Firm Interviewees

Interview Guide Count Percent

Location

Ontario 14 41%

Québec 12 35%

Other 8 24%

Textile Firms – Size

Small Textile Firms1 10 29%

Medium Textile Firms 18 53%

Large Textiles Firms 6 18%

Textile Firms – 3-digit NAICS1

313 Textile Mills 12 35%

314 Textile Product Mills 21 62%

325 Chemical Manufacturing 1 3%

Total 34 100%

1Coding is approximate as it is based on information available in the contact sample or description of the organization as provided during the interview.

47

APPENDIX B: OCCUPATIONAL GROUPS IN THE TEXTILE INDUSTRYTable A-5: The Main Occupational Groups in the Textile Industry

NOC Occupational Codes 313 314 3252 10% of 3363Total

Workforce% Workforce

All occupations 17,735 17,895 17,735 10,552 63,917

A Management occupations 1,455 1,850 1,455 549 5,309 8.3%

A0 Senior management occupations 275 295 275 53 898 1.4%

A1 Specialist managers 405 515 405 252 1,577 2.5%

A2 Managers in retail trade, food and accommodation services

110 160 110 16 396 0.6%

A3 Other managers, n.e.c. 660 885 660 230 2,435 3.8%

B Business, finance and administrative occupations

2,085 2,170 2,085 916 7,256 11.4%

C Natural and applied sciences and related occupations

725 485 725 710 2,645 4.1%

C0 Professional occupations in natural and applied sciences

240 180 240 424 1,084 1.7%

C1 Technical occupations related to natural and applied sciences

485 315 485 286 1,571 2.5%

G Sales and service occupations 775 895 775 210 2,655 4.2%

H Trades, transport and equipment operators and related occupations

2,195 2,255 2,195 2,243 8,888 13.9%

H2 Stationary engineers, power station operators and electrical trades and telecommunications occupations

170 50 170 147 537 0.8%

H3 Machinists, metal forming, shaping and erecting occupations

125 155 125 937 1,342 2.1%

H4 Mechanics 1,080 415 1,080 476 3,051 4.8%

H8 Trades helpers, construction, and transportation labourers and related occupations

445 515 445 478 1,883 2.9%

J Occupations unique to processing, manufacturing and utilities

9,885 9,585 9,885 5,889 35,244 55.1%

J0 Supervisors in manufacturing 780 660 780 410 2,630 4.1%

J1 Machine operators in manufacturing

6,840 6,230 6,840 1,407 21,317 33.4%

J2 Assemblers in manufacturing 130 490 130 3,737 4,487 7.0%

J3 Labourers in processing, manufacturing and utilities

2,130 2,210 2,130 335 6,805 10.6%

Other 615 630 615 35 1,895 3.0%

49

APPENDIX C: WORKFORCE ESTIMATES FROM SURVEY RESPONSESIndustry EstimatesData provided by firms that participated in the industry survey were used to provide estimates of the textile workforce.

Asthereisaconsiderabledifferencebetweensmall,mediumandlargefirmsintheindustry,estimateswerecalculated separately for each firm size group and then

added together to provide an industry total. Table A-6 below provides the estimated size of the textile industry. As there has been a reduction in the size of the industry between2008and2010,thenumberoffirmsidentifiedby the 2010 search was used as a base for the industry size. The distribution of firm size was estimated based on the distribution identified in 2008 Statistics Canada data.

Table A-6: Estimates of Firm Size Distribution

Firm Size 2008 Statistics Canada Estimates

Percent of Each Size Firm in 2008

Size Distribution of Firms Identified in

20101

Survey Responses to Section B (Workforce)

Small 887 64% 573 107

Medium 434 31% 277 112

Large 62 4% 36 22

Total 1383 100%2 8952 241

1Based on the distribution of Firms in 2008 2Numbers do not add exactly due to rounding errors

Estimates were calculated using the following formulae.

Small firms: Estimated number in industry = 573 (total industry firms) X Number found in survey 107 (total responding survey firms)

Medium firms: Estimated number in industry = 277 (total industry firms) X Number found in survey 112 (total responding survey firms)

Large firms: Estimated number in industry = 36 (total industry firms) X Number found in survey 22 (total responding survey firms)

Totalindustryestimates= Total(Small)+Total(Medium)+Total(Large)

51

APPENDIX D: WORKFORCE ESTIMATES FROM RELATED INDUSTRIESBackgroundUsingthe2006Census,itispossibletoidentifytextileworkers who work in textiles occupations outside of the textile industry (namely NAICS 313 and 314). Based on availablecensusinformation,estimatesweredevelopedof textiles-related employment that can be found in industries outside of NAICS 313 and 314.

Analysis was based on the extent to which employment in three textiles-specific occupations were found in industries outside of 313 and 314. The occupations were as follows:


• Machineoperatorsandrelatedworkersintextileprocessing (J15); and


Basedonthe2006Census,thesethreeoccupationsaccounted for approximately 37% of total employment inthetextile-industry.Basedonthisinformation, foreachjobinthosethreeoccupations,therewere

1.7 related jobs in other occupations in the textile industryforeachspecifictextilesjob(i.e.,thoseemployedinJ016,J15,J316).

Estimation MethodologyAs part of the estimation of related textiles employment inotherNAICScodes,theconsultantexaminedemployment in textiles specific occupations across allindustries.AsnotedinTableA-7,inadditiontoemploymentintextilesindustries(313,314),thereisalso considerable textiles-related employment in other industries,namelyClothing(NAICS315),MiscellaneousManufacturing (NAICS 339) and Personal and HouseholdGoodsDistribution(NAICS414).Inaddition,“employment” in textiles specific occupations is also foundinarangeofotherindustries.In2006,acrossthethreespecifictextilesoccupations,ofthetotalnumberof24,505individualsemployedinthissector,onlyslightlymore than one-half (54%) were employed in the textile industry(NAICS313,314),with46%employedoutsideof the textile industry.

Table A-7: Employment in Specific Textiles Occupations 2006 Census

J016Textiles

Supervisors

J15Textiles

MachineOperators

J316Textiles

Labourers

(J016, J15, J316)Total Textiles Occupations

Total - All Industries 1,780 15,110 7,615 24,505 Share (%)

Textile Industry (NAICS 313, 314) 1,120 8,395 3,685 13,200 54%

Clothing (NAICS 315) 280 2,790 1,785 4,855 20%

Misc. Mfg. (NAICS 339) 20 285 110 395 2%

Personal and Household Goods Distribution (NAICS 414)

110 535 765 1,410 6%

Other Industries 255 3,105 1,270 4,630 19%

Note: Numbers may not sum to total due to rounding

Basedontherelationshipinthetextileindustry,thateachjobinthetextiles-specificoccupation(J016,J15,J316)employs1.7otherworkers,itwaspossibleto

estimate total textiles-related employment in the other industries outside of NAICS 313 and 314.


Table A-8: Estimated Textiles-Related Employment by Industry – 2006

Industry(NAICS)

Total Employment

(all occupations)(2006)

Textiles-SpecificEmployment

(J016, J15, J316)

RelatedEmployment

Total Textile-Related

Employment

% of TotalIndustry

Employment

Textiles (313, 314) 35,630 13,200 22,430 35,630 100%

Clothing (315) 68,065 4,855 8,254 13,109 19%

Misc. Mfg. (339) 76,390 395 672 1,067 1%

Personal and Household Goods Distribution (414)

100,955 1,410 2,397 3,807 4%

All Other Industries 15,721,245 4,645 7,897 12,542 .08%

Total 16,002,285 24,505 41,650 66,155

Applyingtheidentifiedratiosdevelopedabove,itispossible to estimate total textiles-related employment in Canada using the share of textiles-related employment

for the four identified key sectors as well as all other industries,basedontotalemploymentintheindustryreported for 2009.

Table A-9: Estimated Textiles-Related Employment – Canada 2009 (SEPH Basis)

NAICS % Share Total EmploymentEstimated Textiles

Related Employment

Textile Industry

NAICS 313 100% 8,609 8,609

314 100% 10,842 10,842

32522 100% 1,687 1,687

336 10% 10,800 1,080

Related Industries

Clothing 315 19% 27,113 5,151

Misc. Mfg. 339 1% 53,897 539

Personal and Household Goods Distribution Wholesale/distribution

414 4% 103,444 4,138

All Other Industries Excluding Above Industries .08% 14,349,629 11,480

Total 43,526

53

APPENDIX E: SURVEY QUESTIONNAIRE AND RESULTSSECTION A: YOUR ORGANIZATION A1. Of the options below, please indicate the category that best represents the primary operation of your organization.

NAICS Code Count Column %

No NAICS Code provided 3 1%

(3132) Fabric Mills 1 0.3%

(3252) Resin, Synthetic Rubber, and Artificial Synthetic 1 0.3%

(31311) Fibre, Yarn and Thread Mill 31 10%

(31321) Broadwoven Fabric, Manmade Fibre and Silk Mill 13 4%

(31322) Narrow Fabric Mill and Schiffli Machine Embroidery 18 6%

(31323) Nonwoven Fabric Mills 7 2%

(31324) Knit Fabric Mills 32 11%

(31331) Textile and Fabric Finishing Mill 19 6%

(31332) Fabric Coating Mill 8 3%

(31411) Carpet and Rug Mill 8 3%

(31412) Curtain and Linen Mill 32 11%

(31491) Textile Bag and Canvas Mill 50 16%

(31499) Other Type of Textile Product Mill 68 22%

(32522) Artificial Fibres 6 2%

(32619) All Other Plastic Product Manufacturing 1 0.3%

(33636) Motor Vehicle Seating and Interior Trim Manufacturer 5 2%

(33639) Other Motor Vehicle Parts Manufacturing 1 0.3%

Total 304 100%


A2. Please select the sales revenue range that applies to your organization.

Count Column %

Less than $50,000 23 8%

$50,000 to $499,999 76 25%

$500,000 to $1 million 29 10%

$1 million to $2,999,999 40 13%

$3 million to $4,999,999 24 8%

$10 million to less than $25 million 26 9%



$50 million + 8 3%

Don’t know/ No Response 41 14%

Total 304 100%

A3. Considering your current clients in Canada, please select from the list to indicate your main market and any secondary or other markets? (Select one main and as many as apply other markets).

Primary Markets n=288 Responses Percent

Main Market: Agriculture, Horticulture 13 5%

Main Market: Construction 19 7%

Main Market: Apparel and Footwear 66 23%

Main Market: Geotextiles 6 2%

Main Market: Furniture and Flooring 47 16%

Main Market: Industrial Materials (Electronics etc.) 11 4%

Main Market: Hygiene and Medical Products 18 6%

Main Market: Transportation 21 7%

Main Market: Packaging 7 2%

Main Market: Sports and Leisure 25 9%

Main Market: Filtration 3 1%

Main Market: Body Protection 20 7%

Main Market: Environment 3 1%

Main Market: Other (please specify) 29 10%

Total 288 100%

55

Secondary Market Responses Percent

Secondary/Other Markets: Agriculture, Horticulture 26 18%

Secondary/Other Markets: Construction 52 36%

Secondary/Other Markets: Apparel and Footwear 29 20%

Secondary/Other Markets: Geotextiles 15 10%

Secondary/Other Markets: Furniture and Flooring 32 22%

Secondary/Other Markets: Industrial Materials (Electronics etc.) 27 19%

Secondary/Other Markets: Hygiene and Medical Products 24 16%

Secondary/Other Markets: Transportation 28 19%

Secondary/Other Markets: Packaging 23 16%

Secondary/Other Markets: Sports and Leisure 46 32%

Secondary/Other Markets: Filtration 23 16%

Secondary/Other Markets: Body Protection 28 19%

Secondary/Other Markets: Environment 21 14%

Secondary/Other Markets: Other (please specify) 7 5%

Total Responses 381

Total Firms Responding 146

A4. What is the scope of your organization’s operations? (Check one)

Count Column %

Local 35 12%

Regional 20 7%

Provincial 32 11%

National 63 22%

International 138 48%

Total 288 100%


A5. Does your organization operate a single branch or multiple branches?

Count Column %

Single Branch 244 85%

Multiple Branches 44 15%

Total 288 100%

A6. In what size community does your organization operate?

Responses Column Response %

Rural area (less than 5,000 people) 51 18%

Urban centre of 5,000 to less than 100,000 people 69 24%

Urban centre of 100,000 to less than 500,000 people 55 19%

Urban centre of 500,000 or more people 117 41%

Other (please specify) 2 1%

Total 294 102%

In what size community does your organization operate?

Rural area (less than

5,000 people)

Urban centre of 5,000 to less than 100,000 people

Urban centre of 100,000 to less than

500,000 people

Urban centre of 500,000 or more people

Other (please specify) Total

Small21 28 23 47 2 121

41% 42% 42% 41% 100% 43%

Medium24 28 26 57 0 135

47% 42% 47% 49% 0% 48%

Large6 10 6 12 0 34

12% 15% 11% 10% 0% 12%

Total51 66 55 116 2 290

100.00% 100.00% 100.00% 100.00% 100.00% 102.50%

57

SECTION B: YOUR WORKFORCEB1. How many full-time and part-time workers does your organization employ in total across all branches? Please include temporary or seasonal workers but exclude consultants, outside contractors and others not considered employees.

Full-time(30ormorehoursperweek): 8,136

Part-time (Less than 30 hours per week): 372

Total: 8,508

Full-time by Firm Size

Firms Responding Full-time Part-time Contract

Small 107 365 90 77

Medium 112 3,567 269 284

Large 22 4,204 13 23

Total 241 8,136 372 384

Contract Workers

Count %

Yes Contract Workers 64 28%

No Contract Workers 163 72%

Total 227 100%

Firm Size by Contract Workers

Contract Workers

Yes Contract Workers No Contract Workers Total

Small29 74 103

28% 72% 100%

Medium29 75 104

28% 72% 100%

Large6 14 20

30% 70% 100%

Total64 163 227

28% 72% 100%


B2. What proportion of your workforce is unionized?

Count Column %

No Unionized Employee 194 83%

Any Unionized Employee 40 17%

Total 234 100%

What proportion of your workforce is unionized?

No Unionized Employee Any Unionized Employee Total

Small102 1 103

99% 1% 100%

Medium83 26 109

76% 24% 100%

Large9 13 22

41% 59% 100%

Total194 40 234

83% 17% 100%

B3. Please indicate whether your organization employs the following occupation types, how many workers are currently employed in each occupation type (not including contract workers) and how many unfilled positions there are. If there are no unfilled positions, indicate “0”. Note: Outsourced work is where all work for that occupational group is outsourced to a third party.

Total employees FT and PT for firms that answered B3

Small 455

Medium 3,836

Large 4,217

Total 8,508

59

Occupation Type

Employees in

Occupation

Employees in

Occupation

Current Employed Number

Unfilled

Estimate Industry

Total1

Percent Unfilled Out-source

Only - Number

Percent Firms

OutsourceFT and PT FT and PT

Number Percent Number Number Number Percent Number Percent

Senior or Specialist Managers

149 62% 447 31 1,077 6% 1 <1%

Supervisors 146 60% 533 18 1,193 3% 3 1%

Engineers 52 21% 84 3 183 3% 20 8%

Technicians 103 43% 264 8 614 3% 14 6%

Research and Development

110 45% 190 10 470 5% 13 5%

Mechanics 100 41% 312 15 646 5% 20 8%

Machine Operators

175 72% 3,280 122 6,979 4% 7 3%


184 76% 642 23 1,732 3% 3 1%

All other occupational types eg. general labourers, cleaners

206 86% 2,770* 155 5,956 5% 3 1%

1Note–thetotaldiffersslightlyfromthetotalnumberemployed(18,816)duetoroundingofPTpositions

B4. Please indicate whether your organization currently employs, or is seeking to employ in the next 24 months, workers in the occupational types listed below?

Currently Employ In the Next 24 Months

Quality and Process Control Coordinator 27% 9%

Chemist 7% 1%

Laboratory Technician 12% 2%

IT Specialist 15% 7%

Designers 16% 7%

Electro-technician 11% 4%

New Product Developers 23% 6%

Other (please specify) 4% 6%

N = 213 N = 213


We are interested in developing a better understanding of the demographics of the workforce in the textile industry. Please provide an estimate for each of the following:

B5. What percentage of workers do you have in each age group for each occupation type?

Occupation Type

Less than 35 years old

35 to 44 years of age

45 to 54 years of age

55 years or more

Number Responding

Rounded Number

Snr Managers 3% 22% 44% 30% 95 263

Supervisors 11% 29% 46% 15% 90 292

Engineers 16% 25% 50% 9% 29 44

Technicians 23% 32% 38% 7% 59 146

R&D 22% 26% 37% 15% 57 81

Mechanics 9% 31% 45% 16% 60 140

Machine Operators 15% 31% 33% 21% 115 1529

Sales, Development 9% 21% 50% 21% 114 373

Total 14% 28% 38% 19% 142 1740

B6. Please indicate the average entry level pay and average pay for each occupation type. You may report in terms of Dollars per Hour or Dollars per Year.

Occupation Type

Entry Level Pay (per annum) Average Pay (per annum)

Median Annual Range* Companies

RespondingMedian Annual Range* Companies

Responding

Senior/ Specialist Managers

$60,000 $31,200 $100,000 51 $70,000 $37,440 $130,000 40

Supervisors $37,440 $25,000 $70,000 69 $42,375 $25,000 $70,000 51

Engineers $60,000 $41,600 $85,000 23 $62,400 $42,000 $145,000 20

Technicians $35,000 $24,960 $60,000 37 $41,600 $26,000 $55,000 30

Research and Development $45,000 $30,000 $83,200 36 $52,000 $33,280 $93,600 28

Mechanics $40,000 $24,960 $75,000 39 $45,000 $29,120 $75,000 31

Machine Operators $24,960 $19,760 $41,600 91 $31,200 $22,880 $41,600 69


$40,000 $22,568 $80,000 66 $50,000 $24,960 $120,000 51

61

B7. What percentage of your workers fall within the selected employment equity designation groups:

Total Workforce Female Male Immigrant Worker

Number Firms 197 197 179

Number in Group 2,952 3,504 1,370

Workforce Size 6,456 6,456 6,112

Percent in Group 46% 54% 22%

B8. Please indicate, on the scale below, how developed you consider planning is within your firm for each of the following aspects of sustainable activity.

Energy Use Water Use

Material Use

Carbons Emission

Minimize Waste

Environ Preferable Materials

Green Packaging

Green Travel

Dedicated Employee

No Planning 21% 29% 10% 31% 15% 22% 21% 35% 32%

Early Stages 22% 13% 13% 10% 15% 17% 18% 11% 14%

Planning Almost Complete

16% 8% 13% 4% 13% 10% 11% 5% 3%

Planning Complete 8% 6% 14% 4% 10% 8% 5% 5% 4%

Implemented 16% 10% 34% 9% 24% 23% 17% 12% 10%

Don’t Know/ NA 18% 34% 17% 42% 24% 21% 27% 32% 37%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100%

SECTION C: RECRUITMENT AND RETENTIONWe are interested in understanding the issues that have affected your staff turnover in the past as well as anticipated HR challenges.

C1. Looking back over the past 12 months, how many individuals left your organization (for any reason including retirement, quits, layoffs, termination, etc.)? You can provide this information by total

number of job separations, or by turnover rate. If there have been none please indicate with a “0”.

Firms responding = 186. Workforce of responding firms = 6637 Total number of job separations: 681 OR Turnover rate: 10%

C2. Again, considering the past 12 months, what were the primary reasons for workers leaving?

Firms with Workers Leaving Number of Separations Percent

Worker Retired 66 107 16%

Worker Quit 89 231 34%

Worker Laid Off 66 245 36%

Worker Terminated 59 92 14%


C3. Over the past 12 months did your turnover rate (including retirements, voluntary and involuntary separations such as quits, layoffs, termination, etc.) increase, decrease, or stay the same when compared to the year before?

Count Column %

Increase 39 19%

Decrease 25 12%

Stay the Same 132 64%

Don’t Know 9 4%

Total 205 100%

C4. Over the past 12 months, to what extent has staff turnover been a problem for your organization?

Count Column %

Not a Problem 54 50%

Somewhat a Problem 34 32%

A Problem 13 12%

A Major Problem 4 4%

Don’t Know 3 3%

Total 108 100%

C5. To what extent do you see the following factors as potential human resource challenges facing your organization over the next two years.

Retirement Knowledge Transfer

Sufficient Management

Staff

Retention Key Individuals Retraining Utilizing

Apprenticeships

Not a Challenge 44% 28% 42% 40% 31% 31%

Somewhat a Challenge 18% 26% 17% 24% 26% 14%

A Challenge 11% 19% 19% 14% 21% 20%

A Major Challenge 9% 15% 5% 6% 7% 5%

Don’t Know/ NA 18% 13% 17% 16% 16% 31%

Total 100% 100% 100% 100% 100% 100%

63

C6. We are interested in the likely future number of workers in key occupations as well as your workforce overall. Please indicate the number of workers you anticipate hiring to replace leaving workers (including retiring workers), as well as recruitment due to expansion of your business.

By 2015Replacement of Leaving Workers Expansion

Small Medium Large Total Small Medium Large Total

Senior Managers 5 20 9 34 6 29 5 40

Supervisors 3 15 10 28 3 59 4 66

Engineers 0 1 3 4 0 7 2 9

Technicians 3 13 3 19 2 16 3 21

R&D 3 9 4 16 4 14 1 19

Mechanics 1 6 6 13 4 2 3 9

Machine Operators 16 45 57 118 44 72 3 119

Sales 9 17 13 39 22 33 7 62

Total Workforce 56 78 195 329 121 1290 1488 2899

C7. Please indicate how difficult your organization finds it to hire qualified workers in the following occupation types.

Not at all Difficult Somewhat Difficult Difficult/Very Difficult Don’t Know

Snr Managers 16% 24% 43% 18%


Engineers 30% 27% 34% 9%


R&D 18% 24% 38% 20%

Mechanics 24% 24% 46% 6%


Sales 22% 31% 32% 15%



C8. Which of the following methods do you use to recruit new workers? (tick all that apply)

Responses Column Response % (Base: Count)

Newspaper print ads 96 45%

Internet job board 96 45%

Social networking sites (Facebook, LinkedIn, etc.) 15 7%

Interior or exterior help wanted signs 29 14%

Radio ads 6 3%

Placement agency 62 29%

Government employment centres 80 38%

Word of mouth 135 63%

Trade publication ads 8 4%

Your firm website 30 14%


Total 580 272.30%

C9. Which of the following strategies have been implemented in your organization to try and recruit and/or retain workers? (Check all that apply)


Increased wages 98 46%

Provided benefits (e.g., health insurance, paid vacation, paid sick leave etc.) 80 38%

Provided other employment benefits (e.g., overtime, statutory holiday pay, etc.) 70 33%

Provided on-site training to employees 92 43%

Provided funding for institutional training to employees 39 18%

Implemented flexible working hours 80 38%

Provided child care 3 1%

None of the above 45 21%


Total 526 247%

65

SECTION D: TRAINING AND LEARNINGD1. Does your organization offer training to workers (tick all that apply)


Formal training includes classroom based courses, online courses, workshops, etc. 49 23%

Informal training includes coaching/mentoring, networks, etc. 158 74%

No training offered 33 16%

Don’t know 10 5%

Total 250 117%

N=213

D2. Please indicate whether employees have access to the internet within the organization for the purpose of accessing information/knowledge gathering or online learning (via e-mail, web sites, etc).

Count Column %

Always 73 43%

Only when training is planned 38 22%

Don’t have access to computers 40 24%

Employer not interested in such 13 8%

Don’t know 6 4%

Total 170 100%

D3. For each occupation type, please indicate the adequacy of:

Occupation TypeSkill Level of Entry Level Workers Access to Training for Existing Workers

Adequate Not Adequate Adequate Not Adequate

a. Senior or Specialist Managers 86% 14% 85% 15%

b. Supervisors 78% 22% 83% 17%

c. Engineers 93% 7% 82% 18%

d. Technicians 78% 22% 78% 22%

e. Research and Development 79% 21% 84% 16%

f. Mechanics 76% 24% 81% 19%

g. Machine Operators 66% 34% 81% 19%

h. Sales, Business Development 82% 18% 88% 12%


D4. Please indicate which, if any, of the following are obstacles to providing training for your employees.

Not a Barrier

Minor Barrier A Barrier Major

BarrierDon’t Know

a. Financing the training (i.e. fees are too high) 35% 18% 24% 10% 12%

b. Lack of infrastructure to offer training in-house (e.g. no space) 53% 13% 14% 5% 14%

c. Lack of resources to implement training in-house 39% 23% 13% 10% 14%

d. Lack of programs providing credit toward a diploma or other credential 38% 16% 10% 9% 28%

e. Lack of training relevant to organization needs 32% 17% 17% 15% 18%

f. Difficulties in releasing staff for training (e.g. replacement costs, loss of revenue) 32% 14% 21% 16% 16%

g. Lack of interest on the part of employees (i.e., employees are not interested in taking training or upgrading their skills)

40% 24% 10% 9% 16%

h. Lack of commitment from employer/management to support a learning culture in the workplace 63% 12% 9% 3% 13%

i. Lack of funding for training from sources other than your firm (e.g. federal and provincial programs, unions, industries, etc.)

27% 18% 17% 18% 19%

67

APPENDIX F: DEFINITIONS OF TERMS DEFINITION OF TERMS USED IN THIS REPORTThe Textile Industry – Industry Canada defines the Textile Industry to include the following NAICS

• 313–TextileMillscoversthemanufactureand dyeingandfinishingofyarns,fabricsandsome textiles products

• 314–TextileProductMillscoversthemanufacture offinalproductssuchascarpets,rugs,window coverings,etc.

• 325220–ArtificialandSyntheticFibresandFilamentsManufacturingcoversmonofilament,filamentyarn,staple or tow production

• 33636(10%)–MotorVehicleSeatingand Interior Trims

Enterprise-astatisticalunitinbusinesssurveys,defined as the organizational unit of a business that directs and controls the allocation of resources relating toitsdomesticoperations,andforwhichconsolidatedfinancial and balance sheet accounts are maintained fromwhichinternationaltransactions,aninternationalinvestment position and a consolidated financial position for the unit can be derived. In the case of mostsmall-andmedium-sizedbusinessesinCanada, the enterprise and the establishment are identical. Largeandcomplexenterprises,consistingofmore thanoneestablishment,maybelongtomorethan one NAICS industry.

Establishment – a statistical unit used in business surveys,andisdefinedasthemosthomogeneousunitofproduction for which the business maintains accounting records from which it is possible to compile data on the inputs used in the production process (cost of materials andservices,labourandcapital)andthegrossvalueofproduction(totalsales,revenuesandinventories).Inthemanufacturingsector,theestablishmentgenerallycorrespondstoaplant,millorfactory.Someestablishmentsdonotemployanyindividuals,andinsome cases the employment type of an establishment cannot be determined (indeterminate). Non-employers are in effect owner-operated and the owners do not pay wages or salaries to themselves as an employee

of the firm. Even though some establishments do not maintainemployeepayrolls,theymayhaveworkforces,whichmayconsistofcontractedworkers,andpart-timeemployees.

Company – a term used by Statistics Canada in describing economic activity. It is defined as the level atwhichoperatingprofitcanbemeasured.Thefirm,asastatisticalunit,isdefinedastheorganizationalunitforwhich income and expenditure accounts and balance sheets are maintained from which operating profit and the rate of return on capital can be derived. An “employer”,“firm”or“company”couldcompriseseveral“establishments”.

Firms – a firm or employer establishment. People completing the industry survey are referred to as firms. Firms can represent a firm with multiple branches or a firm with only one branch. In firms where branches operatedindependently,theindustrysurveywascompleted by the branch.

Industry survey – The survey of industry representatives conducted as part of this Labour Market Information Project and as described in detail in Appendix A.

Firm size – References to firm size in the document are based on number of employees as follows:

• Smallfirm–Afirmwith0-9employees

• Mediumfirm–Afirmwith10-99employees

• Largefirm–Afirmwith100ormoreemployees

NAICS – the acronym for the North American Industry Classification System used by business and government to classify business establishments according to type of economic activity (process of production)inCanada,MexicoandtheUnitedStates.It has largely replaced the older Standard Industrial Classification(SIC)system;however,somegovernmentdepartments and agencies still use the SIC codes for certainsurveys.InNAICS,anestablishmentistypicallyasinglephysicallocation,thoughadministrativelydistinctoperations at a single location may be treated as distinct establishments. Each establishment is classified to an industry according to the primary business activity taking place there.


The current version of NAICS in use is NAICS 2007.

Textile Mills (NAICS 313) – This subsector comprises establishments primarily engaged in manufacturing yarnortextilefabrics,orfinishingyarn,textilefabricsor clothing. Establishments primarily engaged in manufacturingbothfabricsandtextileproducts,exceptknittedclothing,areincluded.Itexcludes establishments primarily engaged in manufacturing textile products (exceptclothing)frompurchasedfabric,whichfallunderNAICS314TextileProductMills,andmanufacturingclothing,whichfallsunderNAICS315ClothingManufacturing. It includes:

• Fibre, Yarn and Thread Mills (NAICS 3131)

• Fabric Mills(NAICS3132,whichincludes broadwoven,narrow,non-wovenandknitfabricsand Schiffli machine embroidery

• Textile and Fabric Finishing and Fabric Coating (NAICS 3133)

Textile Products (NAICS 314) : This subsector comprises establishments primarily engaged in manufacturing textileproducts,exceptclothing.Itexcludes establishmentsmanufacturingyarnortextilefabrics, orfinishingyarnorfabrics,ormanufacturingbothfabricsandtextileproducts,whichfallunderNAICS313,Textile Mills. It also excludesmanufacturingclothing,which falls under NAICS 315 Clothing Manufacturing. It includes:

• Textile Furnishings Mills(NAICS3141), whichincludesCarpetandRugMills&Curtain and Linen Mills

• Other Textile Product Mills(NAICS3149),which includesTextileBagandCanvasMills&AllOtherTextile Product Mills

TextilesHumanResourcesCouncil•R.A.Malatest&Associates Labour Market Information Study 70 Email: [email protected]

Phone: 613-230-7217

canadian textile industry labour market information and hr needs

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