Contract knitwear workshop for independent labels

Rent a small unit and knit and finish garments to order for Canadian brands and designers.

Startup costC$35k to C$120k
Monthly revenueC$3k to C$15k
Time needed30+ h/week
First incomeMonths
  • C$35k-120k
  • Full-time
  • Own premises

Estimates for a small start in Canada, not guarantees.

What it is

A small production unit with industrial or semi-industrial knitting machines, linking and finishing equipment. You make garments to a client's design and spec, from sampling through to small and medium production runs.

Your first three steps

  1. Visit local designers and labels to learn what runs they need and what they currently pay, then draft a price list
  2. Get quotes for second-hand machines and a small unit, and compare with sharing space in a maker or studio building
  3. Offer a discounted sample run to one or two labels and ask for a written reference or case study
Who pays

Independent fashion labels, designers, retailers and organizations wanting custom knitted items such as team toques.

How it makes money

Price per garment or per run, agreed after sampling. Extra charges for sample development, rush orders and finishing such as labelling and packing.

Skills that help
  • Industrial knitting machine operation
  • Technical pattern and tension setting
  • Production planning and deadlines
  • Client communication and quoting
Watch out for
  • Machines and a unit are a large outlay, so test demand with a few clients before committing to a lease
  • Commercial general liability insurance, and WCB/WSIB coverage once you hire (rules vary by province)
  • Check municipal zoning and fire safety requirements for a workshop with machinery
  • Overseas manufacturers can undercut on price, so focus on quick turnaround, small runs and Canadian-made appeal
  • Orders can be uneven, so keep a cash buffer for quiet months and yarn deposits

🔒 Full research report for Canada

Real cost breakdown with current prices, licences and registration checklist, local competition, pricing, break-even and a 30-day launch plan, with sources.

Coming soon

Questions people ask

How much does it cost to start a contract knitwear workshop?

Startup costs are typically estimated at around $35,000 to $120,000, depending on the unit you rent and the industrial or semi-industrial machines, linking and finishing equipment you buy. Test demand with a few clients before leasing.

How much can a contract knitwear workshop earn?

Monthly revenue is typically estimated at around $3,000 to $15,000, depending on your machines, client base and run sizes. Orders can be uneven, so keep a cash buffer for quiet months and yarn deposits.

What rules should I check before opening a knitwear workshop?

Check municipal zoning and fire safety requirements for a workshop with machinery, commercial general liability insurance, and WCB/WSIB coverage once you hire, as rules vary by province. Also consider price pressure from overseas manufacturers.

Other ways to run this business

Similar making and manufacturing ideas

More ideas →