Just two days ago, California was rocked by a surprise factory closure that suddenly wiped out 400 jobs.
(Of course, this follows a string of painful and embarrassing factory shutdowns that have damaged the already fragile California economy.)
And unfortunately, the pain could be set to continue – and possibly even get worse.
More on that in a moment, but first let’s discuss Friday’s surprise closure:
Manna Beverages closed its West Sacramento bottling factory and sacked 400 employees on Friday.
And according to CBS’ reporting, this came as a total surprise to workers.
And while the specific closure no doubt was a surprise – the fact that factories all across California and the US are closing, unfortunately, should not be.
Ever since the launch of the trade war this Spring, food and beverage companies have been slammed with tariffs, boycotts (American goods are not popular abroad right now), and slowing domestic demand.
As the American economy loses foreign markets, American companies are trimming jobs – leading American consumers to cut back spending in fear of more job losses.
Add these acute issues to the longstanding problems facing the food and beverage industry – inflation, labor shortages, and increasingly complicated supply chains – and the situation becomes something of a perfect storm.
Of course, that doesn’t do anything for the 400 hardworking Californians who just discovered they’re out of a job.
And unfortunately, they will likely soon be joined by more people as the national economy continues to sputter and drags California down with it.
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