THE RAG TRADE

THE RAG TRADE

The History of Winnipeg's Garment Industry

By George Siamandas

INTRODUCTION
One of the most colourful industries that emerged in the diverse economic history of Winnipeg is the Rag Trade, also known as the needle trade or the garment manufacturing industry. Starting first as small family enterprises run by Jewish tailors, by 1970 it had become the second largest industry in Manitoba. Today it employs 8,000 people in over 115 factories. And it supplies many famous brands.

Names like Calvin Klein jeans, Gap, Northern Reflections, OshKosh B'Gosh, Eddie Bauer outerwear, London Fog, are all manufactured in Winnipeg's garment industry, and help it gross $700 million in annual sales. Uniforms for everyone in the Canadian Armed forces, specialised sportswear for curling, warm durable outerwear tested in Canada's north or "Tundra" sweaters for Ronald Reagan. They are all made in Winnipeg.

HOW THE GARMENT INDUSTRY BECAME ESTABLISHED IN WINNIPEG
How did Winnipeg, originally an agricultural area, grow such an industry? By 1874, a year after incorporation as a city, Winnipeg had two men's tailors and one woman's dressmaker. But in the next decade, during the 1880s, 20 new businesses would thrive. They made what prairie people needed by hand in small operations.

In the early 20^th century, Jewish people fleeing European persecution began to arrive in Winnipeg. The tailoring skills that had been passed down from generation to generation were activated in the cheap warehouse space available in Winnipeg's warehouse district. In 1899, Moses Haid, established the first mass production apparel manufacturer "Winnipeg Shirt and Overall Company." By 1906, 19 firms had been founded by families like Berkowitz, Crowley, Freed, Kennedy, Jacob, Neiman, Nitikman, Shore, Stall, Steinberg, and Waldman.

The building of the Panama Canal in 1914 sharply cut into Winnipeg's growth. Now it became cheaper to ship goods west by the canal instead of through Winnipeg, leaving many warehouses empty and abandoned in the 1920s.

But for the needle trade this setback for Winnipeg marked its opportunity. Apparel manufacturers now had prime space available at bargain prices. And grow they did. Between 1941 and 1951 the industry grew 213%. In the peak year 1946, 14 new firms were established.

HOW THE INDUSTRY EVOLVED AND HOW IT COMPETES TODAY
From its beginnings as a provider of overalls and workwear for prairie farmers and railroad workers, the industry has become a provider of fashionable quality garments. The fashion industry is now woven into the fabric of Winnipeg's economy.

Because Winnipeg has always been far from markets it learned very early to think in global terms. Almost 90% of the clothing produced in Manitoba is exported. Today Canada is the second largest exporter of clothing to the US after Mexico. Today's factory can turn an order around in 48 hours.

And in Winnipeg these fierce competitors co-operate. If a manufacturer runs out of cloth, he can usually pick up some locally and get it within the half hour. To keep up to date, they tour one another's plants. They innovate with manpower training programs and have also directly imported trained sewing machine operators from Asian countries.

PROFILES OF TOP FIRMS AND COLOURFUL ENTREPRENEURS
There are many stories of the shmata trade and of the colourful fathers and grandfathers who built dozens of businesses by making something useful with nothing but rags. Today some of the top firms include Nygard International, Western Glove, Richlu Sportswear Standard Knitting and Peerless Garments.

Flamboyant figures like jet setting Peter Nygard started with $8,000 and wash and wear polyester in the 1960s. Today Nygard International is a $300 million empire with 1,500 employees in Winnipeg.

Brothers Michael and Bob Silver have transformed Western Glove into one of North America's leading denim jeans manufacturers. At the same time they have pioneered in employee support programs like on site day care.

Even in the last decade people like sportswear maker Carol Johnson continue to enter the industry often starting from their dining tables and turning their businesses into world class enterprises like Pace Setter. Just like their forefathers did, a century ago.