Initiating the plaid trend, designing chic Olympic gear, giving the world fabulous tuxedos along with style icon celebs; these aren't mere words sprung from any fashion magazine, in fact, these are the special words that describe the fashion sense of a North American country - Canada. The impact of what gets made, adored, and ultimately sold in Canada's apparel industry has given a ray of hope to Canadian textiles that were struggling to survive following economic slowdown.

The apparel industry of Canada is vast and includes a little more than 2000 firms. The apparel business in the country has easily accepted new entrants into the business, and there are hardly any barriers to entry with regard to the government's policies. Among the apparel firms, the majority are owned by citizens of Canada, and only 2 percent of firms are owned by foreign entities or individuals. Among these foreign-owned firms, most are controlled by U.S.-based multinational corporations. These multinational corporations are focused on manufacturing products like jeans, undergarments, and foundation garments on a large scale. Roughly 75 percent of firms have fewer than 50 employees and account for about 33 percent of total industry shipments. The firms that are part of the apparel industry include works like cutting and sewing apparel, accounting for about 25 percent of the total number of establishments in the apparel industry.

Among the leading cities in Canada, Toronto has carved a niche for itself in the apparel sector. Not only the industries within the country, but companies from the United States, Mexico, Japan, etc. too have shown confidence in Toronto's apparel manufacturers. Toronto manufacturers guarantee quality garments, with a quick turnaround effort, as well as catering flexibility and reliable services. The workforce in major cities like Toronto and Ottawa is highly experienced and ranges from people working as cutters, sewers, and pressers, while the intellectual manpower includes art directors, makeup artists, and hairstylists. As a matter of fact, Toronto is among the very few cities in the world that have launched men's fashion week. To be precise, it is only the eighth city in the world to do so, following fashion capitals such as Milan, Los Angeles, and London.

The Canadian apparel sector is fast-growing, but some of the impediments that it faces include a lack of skilled labor in many cities and the relocating and shifting of larger firms to developing countries. Moving to such destinations presents cost-effective options, such as lower production expenses cost and cheaper labor workforce, all critical business platforms for apparel companies that are looking to sustain and grow in a throat-cut competition worldwide. Many of the manufacturing units have shifted base from Canada, following the rising cost of production.

These factors apart, the Canadian domestic production of textile and apparel is steadily declining, and there is a growing need for imports. Currently, 79 percent of apparel in Canada is shipped in by the industry. China has benefited significantly from this, as Canada imports a good share of textile and apparel from China. India and Mexico have also gained from growing Canadian shipments, as the demand from the North American country is stable, and domestic manufacturing is decreasing. On the constructive side, some of the large firms that have off-shored apparel production still continue to operate short-run and replenishment facilities in Canada with a view to tackle the fast-changing trends in the retail industry and to produce high-end apparel. These firms continue to operate the non-manufacturing activities such as design, research and development, merchandising, branding, marketing, logistics, and distribution.