More tough news out of Georgia, as if the Peach State needed any more.
After suffering waves of factory closures this year, unfortunately Georgia is facing yet more losses.
More specifically, International Paper is closing down its containerboard mill in Savannah, part of a broader shutdown that has cost an estimated 1,100 Georgians their jobs.
Containerboard is a big part of the food packaging and transportation supply chain, and its manufacturers have been shutting down production all over the country this year as demand keeps falling.
Food manufacturers have been under pressure for years as rising input costs, labor difficulties, and increasingly snarled supply chains have created a difficult environment that has boosted a need for and focus on efficiency.
And then the trade war happened, causing an almost overnight increase in complexity as companies have to navigate the dynamic environment of tariffs and retaliatory tariffs.
Plus, foreign boycotts of American products have taken an enormous toll across the economy and especially in food sectors. After all, soybeans to some extent are soybeans, no matter where you buy them from – so even though they’re a huge American agricultural export, there’s nothing (aside from pricing and goodwill) tying our trade partners to “buy American” instead of someone else’s soybeans. And tariffs, of course, directly impact both of those factors.
As demand for food falls, producers have to trim their production and expenses – including orders for packaging like containerboard.
So these impacts ripple up and down the broader supply chain, with impacts that are certainly harming Georgia’s economy.
Here’s wishing the impacted workers the best as they navigate unemployment and the holiday season. They deserve better, and let’s all join together to support them. If you have words of encouragement, advice, or job leads – please leave a comment on this article!
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