TEXTILES.ORG
As of this writing, most Canadian textile manufacturers whose goods are included in the Canada-United States-Mexico Agreement (CUSMA) haven’t been directly affected by U.S.-imposed tariffs on Canadian imports. They have not, however, been spared from the consequences of this trade war, says Ryan Mallough, vice president of legislative affairs and communication for the Canadian Federation of Independent Business (CFIB).
“Uncertainty is the word of the day,” he says. “There’s a lot of frustration around how hard it is to plan ahead with things changing so rapidly. It makes business operations particularly challenging. We’re seeing small-business confidence at the lowest levels in our history of recording it.”
Headquartered in Toronto, Ont., Canada, CFIB is the country’s largest association for small and medium-sized businesses, says Mallough. With 100,000 members from every industry and region, the organization supports business-owner success through driving policy changes at all government levels and providing expert advice, tools and other resources.
It’s a day-by-day situation, says Mallough of the tariffs.
Confusion is rife, especially because some tariffs have been paused, leaving business owners not knowing what to expect. As such, some Canadian textile manufacturers are investigating strategies that decrease their reliance on the U.S., diversifying from where they source their materials as well as looking to markets other than America. In addition, labor, inflation and dwindling consumer demand are also on the list of issues with which they’re wrestling.
Searching for local solutions
Despite ongoing tariff issues, labor remains one of their biggest challenges, says Julie Couture, head of manufacturing sales for Fiesta Tents Ltd., located in Montreal, Que., Canada. Finding the right people with the necessary expertise—for production in particular—has proven difficult, so much so that rather than using outside staffing agencies as the company previously did, Fiesta has hired a full-time human resources coordinator to hunt down talent.
Fiesta began as a tent rental company but now also manufactures clearspans, hybrid frame and high-peak tents as well as accessories, primarily targeting tent rental companies in Canada and the U.S. The company sells more coated vinyl in Canada since laminated vinyl doesn’t perform well in colder temperatures. U.S. demand leans a bit more toward a less expensive laminate with lower price points.
One of Fiesta’s best-selling lines is the Legacy Series. At a 2024 trade show, the company showcased a structure from the series with a black powder-coated frame featuring clear vinyl panels and black vinyl trim. The trend toward this type of finish began a few years ago in the high-end markets but now is being embraced by more tent rental companies and venues such as wineries, says Couture, describing the response to the new offering as “overwhelmingly positive.”
Canadian tent rental companies and others looking for tenting solutions are “without a doubt” showing greater interest in buying local, says Couture.
“I see it every day with the quote requests I receive,” she says. “In the short term, we have no plans to completely change our strategy because of the tariffs’ threat. But in the medium and long term, we will need to start working on ways to diversify.”
Although Couture says they’ll “never forget our American customers,” tariffs could directly impact U.S. pricing.
“Depending on the percentage, different scenarios are imaginable, from making it difficult for us to sell to new potential customers, current customers having to purchase at a higher price or even having to find alternate solutions if the tariffs are so high they can no longer afford our products,” Couture says.
“We’re all doing our best”
Alex Petizian, president of Naizil Inc. and chair of ATA Canada, says he hopes tariffs will spark a manufacturing resurgence in North America, which has been negatively impacted by trade globalization, resulting in the encroachment of less expensive imports into the markets.
Headquartered in Bolton, Ont., Canada, Naizil makes PVC-coated fabrics for clients ranging from small, family-owned businesses to multinational corporations. The company serves those in transportation and works with structures, inflatables and athletic needs such as pool covers and gym mats. The majority of its customers are in Canada and the U.S.
“Today, there are fewer than a handful of PVC coaters like ourselves combined in the U.S. and Canada,” Petizian says. “A lot of times, we would lose out on opportunities due to pretty significant price differences. So, in terms of tariffs, despite the controversy, I personally do believe and hope that this will lead to more manufacturing in the U.S. and Canada.”
Petizian says Naizil is seeing two major trends in its markets. One is a growing awareness of the environmental and health impacts of chemicals, accompanied by increased regulations on their use. The second trend he mentions is that of greater interest in purchasing North American-made products.
Petizian recalls a “a very specific structure material” the company recently developed in response to a client’s environmental concerns and its chemical formulation requirements. Accuracy and speedy turnaround were also necessary, and both were made easier by the company’s location in the Greater Toronto area. The company was able to quickly ship fabric samples and even visit the client on-site, ensuring the project remained on track.
As for the tariffs, Naizil is taking the news and possible impact “one order at a time,” Petizian says, an approach many are adopting.
“Given the evolving nature of the current tariff rules, we believe most of the companies and organizations are adjusting on the fly,” he says. “We’re all doing our best to maintain our service standards amidst changes.”
Navigating through uncertainty
Jim Ennis, president and CEO of Ennis Fabrics, says he is more concerned about the state of the global economy and inflation because they have caused consumers to delay purchasing nonessentials. Since the company sources directly from China, the tariffs levied by President Donald Trump’s administration haven’t affected Ennis Fabrics’ Canadian operations nor have the retaliatory tariffs Canada has enacted on the U.S. Instead, the weakening Canadian dollar, leading to higher costs for Canadian consumers of U.S. products, is presenting the biggest challenge.
“To address this, we will continue offering our privately developed products as a cost-effective alternative for price-sensitive customers,” Ennis says. “Additionally, we’ve strategically increased our U.S. product inventory to help mitigate these pricing pressures.”
Headquartered in Alberta with warehouses and offices throughout Canada and the U.S., Ennis Fabrics is an international distributor of globally sourced textiles and supplies, catering to the industrial, marine, awning, transportation and recreation markets. Specialty lines include fabrics designed to withstand harsh environments and specialized applications such as fire retardancy. The company conducts business across Canada, the U.S., China, Mexico, Vietnam, Indonesia and Australia.
Ennis is seeing several trends hitting the marine and residential industries, with the biggest being a preference for more color and distinctive textures. U.S. and Canadian consumers are also favoring Proposition 65-compliant products, driven by an increased awareness of per- and polyfluoroalkyl substances (PFAS). Proposition 65-compliant products are free from chemicals identified by California’s Office of Environmental Health Hazard Assessment to cause cancer or reproductive harm.
The Challenger, a bestseller, meets the requirement. Designed for marine and contract clients, the fabric is a durable PVC that comes in 40 colors and is Proposition 65-compliant as well as UV- and fade-resistant, among other features.
Ennis says the company is continually innovating and introducing a range of new fabrics and supplies. For example, this year, Ennis Fabrics expanded its fastest-growing product line, the Guardian, adding more colors and textures.
“We currently have a very diverse product offering that spans many different markets and market segments, and we currently do not have plans to enter any new markets,” says Ennis. “Like many markets today, we are navigating through a period of uncertainty. The key to success is maintaining agility and adapting quickly to unforeseen challenges.”
Exploring new opportunities
“I think that, like most companies, the tariffs have forced us to put into action what has been in the cards for a long time—market diversification,” says Marc-Antoine Lachance, president of Adfast Grommeting based in Montreal, Que., Canada. “For sure, as an entrepreneur, investing, in uncertain times like these, is scary. But on the contrary,
I believe it’s the solution.”
The company specializes in grommets and grommeting machines for those making products requiring eyelets, such as tarps, safety harnesses, nets, banners, tents and awnings. While brass grommets have long been the mainstay, stainless steel versions are becoming “an increasingly important” part of Adfast’s sales, says Lachance, attributing this to their durability and tarnish resistance.
Although Adfast sells worldwide, Canada and the U.S. remain its biggest markets, primarily because of proximity. One of its newest machines is the Gromminator™ MK2. Unlike air-driven machines, this one is fully mechanical, enabling the removal of many standard components, such as air cylinders and valves, which the company previously obtained from other manufacturers. Now, Adfast makes the mechanical parts in-house, giving the company greater control over the end product and pricing. Additionally, air is “slow, complicated, less intuitive” and difficult to precisely adjust and keep in adjustment, issues that mechanical grommeting machines don’t have.
Lachance says Adfast is constantly developing new products, whether grommeting machines or stamping dies. The company also invests in ways to achieve greater production efficiencies. Lately, Adfast has concentrated on breaking into new geographic markets, he says.
“There are a lot of unknowns and hurdles to overcome, but fortunately, the government has a lot of resources to help in this direction,” Lachance says. “Europe will be our main focus but without reducing our current efforts in the United States, as it is still our main market.”
“What is happening right now is not what American businesses signed up for or voted for,” he continues. “They are still open to buying from Canada. The proof? We still close new American customers each week.”
For the latest updates on tariffs that affect the textile industry, visit SpecialtyFabricsReview.com.
Pamela Mills-Senn is a Seal Beach, Calif.-based freelance writer.
SIDEBAR: Canadian businesses react, CFIB supports
Even before the tariffs’ threats, Canadian businesses in general were working to regain their pre-pandemic footing, contending with higher costs and lowered consumer demand. But now, the Canada-U.S. trade conflict has significantly affected that effort, says Ryan Mallough, vice president of legislative affairs and communication for the Toronto, Ont.-based Canadian Federation of Independent Business (CFIB). In March, CFIB reported a historic low in small-business confidence, with 89% describing business planning as a struggle.
Many reported taking steps to mitigate that impact, with 32% of business owners saying they’ve transitioned to suppliers and markets within Canada. Promoting Canadian-made products is also in the mix, along with possible layoffs or delaying/canceling expansion.
While small-business confidence rebounded slightly in April and May, Mallough worries that tariffs could further stifle the economy.
“The Canadian textile market may be forced to look for alternative suppliers or raise prices, which would ultimately impact Canadian consumers and retailers,” he says. “Small businesses are already experiencing weak consumer demand. If the costs for apparel and footwear are increased due to tariffs, consumer demand could fall even further, hurting small businesses’ already tight profits.”
Coming back from this precipice could prove tough without strong support from all government levels, Mallough continues, adding that the CFIB intends to be “laser focused” on ensuring the necessary attention is paid to recovery strategies, from economic-growth policies and tax reductions to eliminating unnecessary red tape. He invites business owners to visit CFIB’s website at cfib-fcei.ca for the latest tariff news and to access additional information and resources intended to help them stay abreast of an “extremely fluid” situation.