When Kathy Cheng stepped in to help the family business in 2009, the survival odds were slim. WS & Co., a Toronto-based apparel manufacturer founded by her father and his siblings after immigrating from Hong Kong decades earlier, was struggling. At its peak in the late 1990s, the company employed more than 500 people across three facilities in the Greater Toronto Area (GTA), producing high-quality garments for brands like Roots and Holt Renfrew. WS & Co. exclusively manufactured its garments in Canada, but like many North American producers, it had been steadily losing ground as their clients turned to cheaper offshore alternatives. This shift was largely driven by the rise of fast fashion: low-cost clothing churned out quickly to keep up with ever-changing trends. 

Things worsened during the 2008 global financial crisis. By the time the recession ended, WS & Co. was down to just 150 employees and struggling to compete on both speed and price. But instead of chasing the industry trend of cost-cutting and outsourcing, Cheng chose a different path. In 2009, she restructured the business into a leaner operation by narrowing its focus. While WS & Co. had traditionally produced garments for other brands, she decided to relaunch the company as Redwood Classics Apparel—a direct-to-consumer brand of premium, long-lasting garments made in-house entirely in Canada. 

The new brand wasn’t just about making better products–it was built on an ethos of local production, social responsibility, and transparency. As president, Cheng put these values into practice by establishing a supply chain rooted in supplier diversity, intentionally partnering with businesses owned by underrepresented groups to source materials and services. For her, partnering with diverse suppliers across the GTA was a strategic move to ensure higher quality, support local communities, and distinguish Redwood in a market saturated with mass-produced clothing.

Studies shows that supplier diversity strengthens businesses by introducing new ideas, reducing supply chain risks through broader sourcing, and enhancing brand reputation among socially conscious customers. Recognizing these benefits, an increasing number of businesses have embraced supplier diversity initiatives over recent years. Demographic shifts also play a key role–by 2041, about two in five Canadians are expected to belong to a racialized group. But the economic benefits are just as compelling. A 2022 study by the University of Washington, sponsored by the non-profit organization Billion Dollar Roundtable, suggests that for every dollar spent with diverse suppliers, US$2.1 in total impact is generated. This includes not just money paid to businesses, but also the ripple effects of new jobs, employee spending, and increased business for other suppliers. 

Cheng first became interested in supplier diversity in 2014, after a distributor  invited her to a gala hosted by the Canadian Aboriginal and Minority Supplier Council (CAMSC). The non-profit certifies diverse suppliers and connects them with large companies and government institutions for procurement opportunities. Cheng was impressed by CAMSC’s breadth of support offered to its members, including business training, professional development, and government advocacy.

For Cheng, supplier diversity wasn’t just a business decision–it was a personal one, rooted in her company’s history. Her family’s factories had always employed fellow immigrants, including skilled workers from Hong Kong who arrived in Canada after China’s 1997 takeover. Many brought decades of experience in the textile industry but faced barriers to employment due to cultural barriers and systemic discrimination. As a racialized woman, Cheng had encountered similar challenges herself. 

Just as her family had helped Hong Kong workers establish themselves in Canada, Cheng saw Redwood Classics Apparel as an opportunity to help smaller, underrepresented business owners. Her company could provide steady contracts and access to larger markets, while benefiting from their skills and craftsmanship. “Underrepresented suppliers are often hungry to prove themselves, and that’s exactly who you want to be working with,” she says.

To formalize this ethos and expand her network, she had Redwood Classics certified through CAMSC. The move aligned her vision of a brand grounded in quality craftsmanship domestically made goods, and strong ethical values—making supplier diversity not just a values statement but a strategic lever to set her business apart.

To become CAMSC-certified, a business must be at least 51 per cent owned, managed and controlled by individuals who are Indigenous or visible minorities. Applicants must provide proof of ownership, such as through government-issued ID and company documents like partnership agreements and articles of incorporation. Once approved, they receive an official certificate–renewed annually–that signals their commitment to supplier diversity.

Cheng’s decision has paid off. Over the past decade, Redwood Classics has become one of the few Canadian apparel brands that still designs, knits, and sews its garments domestically. The company weathered the pandemic and supply chain shocks by relying on a strong network of local suppliers—some of whom Cheng connected with through CAMSC trade shows and events, a key benefit of certification. The approach strengthened Redwood’s resilience, reducing reliance on global suppliers, and reinforcing its appeal to customers who value sourcing from diverse communities. Nearly half of Redwood’s procurement spend supports diverse-owned businesses in Ontario, including textile mills, embroiderers, and knitters–collectively supporting 110 local jobs through its network. 

Cheng’s involvement in supplier diversity has also led to other unexpected, mutually beneficial partnerships. For example, Redwood’s main financial provider, RBC, is a corporate member of CAMSC. After Kathy connected with an RBC representative through a CAMSC event, she realized the bank supported her company’s values. Redwood gained a trusted banking partner, while RBC gained a loyal client. Redwood’s visibility as a diverse supplier that actively champions others has also helped the company secure more contracts with organizations looking to build inclusive supply chains.

Redwood’s garments cost more than overseas competitors, but Cheng says the brand isn’t trying to be the cheapest garment on the rack. Instead, it prioritizes quality and inclusion–values that have helped Cheng carve out a loyal customer base. She believes Redwood stands out amid generic brands in part due to the prominent display of its CAMSC certification badge, featured on product tags, the website, invoices, and even email signatures.

Cheng also stresses that supplier diversity doesn’t have to sacrifice profitability. For her, it’s about making intentional spending decisions and finding value in places that are often overlooked, rather than simply paying more without purpose. She acknowledges that manufacturing in Canada is facing challenges, such as rising costs and the decline of domestic mills, but believes her model offers a viable path forward. “Over the years, I’ve realized our factory has become a commercialized incubator,” she says. “If a small company like ours can help sustain dozens of local jobs and support other diverse businesses, imagine what large corporations could do.”

Related: How Workplaces Can Actually Diversify Their Teams

In addition to CAMSC, several Canadian and global organizations certify and support diverse suppliers as businesses increasingly seek to advance their social equity goals. The Canadian Council for Indigenous Business certifies Indigenous-owned firms, while the Canadian Gay and Lesbian Chamber of Commerce works with 2SLGBTQI+ entrepreneurs. On the international stage, the Global Supplier Diversity Alliance promotes similar organizations in countries like Australia, China and South Africa. These groups help ensure that underrepresented business owners have access to markets and resources, promoting greater economic equality.

“Supplier diversity just means there’s now an opportunity for us to be at the table,” says Cheng. Eventually, her hope is that the table grows large enough to make such initiatives unnecessary. “That would be the ultimate goal,” she says. “But we’re not there yet.”