The hits keep coming for Massachusetts as the economy teeters.
After a wave of factory closures slammed the state earlier this year…
Massachusetts needed some good economic news.
Unfortunately, yet another factory is poised to close down before the end of the month – taking good-paying jobs with it.
More specifically, Coffee Holding Co. just announced plans to close its West Andover factory by the end of October.
The company cited the decline in grocery store shelf space for regional coffee brands like theirs as a key contributing factor, and certainly the fact that grocery stores have been showing increasing preference for national brands has been well-documented.
But of course, these changes don’t happen in a vacuum. Coffee prices are skyrocketing thanks to tariffs (especially new tariffs on Brazil), and the broader food and beverage sector is undergoing a downturn as the broader economy slows down.
The combination of higher input costs (imported coffee) and consumer price sensitivity as Americans tighten their belts for what increasingly looks like an incoming recession has squeezed coffee companies’ margins, so they’re looking anywhere they can to save money and preserve some profitability.
So the Massachusetts factory shutdown makes sense – they’re planning to transfer operations to a plant in New York and save some overhead and transportation costs.
But of course – the fact that this closure makes sense is cold comfort to the workers who just discovered they’ll be unemployed in time for the holiday season.
So if you know anyone in Massachusetts who’s hiring – leave a comment on this piece to help out!
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