Massachusetts has had a rough 2025, no doubt about it.
And with so many local factories already closing this year…
Massachusetts certainly could have used some good news.
Instead it looks like the economic pain is set to continue.
More specifically, Kovalus Separation Solutions is closing its factory in Wilmington, with 80 people poised to lose their jobs between October 15 and December 1.
It’s unfortunately just another example of the economic malaise that has hit American manufacturing in general and the food sector in particular since the trade war went into effect earlier this year.
Of course, the food industry has always faced challenges, and for the last several years that’s been the combination of stubborn inflation and labor shortages that have been an issue since the pandemic began to recede.
But the trade war has piled on more trouble: Foreign boycotts of American exports at the same time that domestic consumers are also pulling back spending due to increasing fears of a recession…brought on in large part because of the trade war.
That’s a double-whammy of falling demand that has harmed food and beverage companies all across the spectrum.
As those companies face falling sales, they have to trim expenses to stay afloat – directly harming providers like Kovalus, which develops filtering technology for dairy and beverage companies.
As the effects ripple out, more and more companies in the supply chain like Kovalus will unfortunately face falling demand for their products and the need to cut their own expenses.
So, unfortunately, there will likely be more layoffs and factory closures to come as the food and beverage industries try to find a new equilibrium.
If you have advice or ideas for the hardworking folks who are about to lose their jobs and will have to navigate an increasingly difficult job market, please share in the comments.
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