As if California needed more bad news…
What with the ICE raids…
And a string of factory closures…
And of course all the negative impacts from the trade war.
Many of the factory closures nationwide have been old factories (40+ years old) – facilities that were inefficient and outdated.
Which is why this latest loss in Vernon, California is so confusing – the factory was less than a decade old!
The factory was operated by rPlanet Earth, a recycler and food / beverage packaging producer. The factory took recyclable plastic, and then transformed it into food-grade packaging (including bottles and clamshells).
This was the second California-based recycler to close this year, and my suspicion is that this reflects the general downturn in food packaging throughout the country, which has prompted a number of packaging factories and containerboard mills to close over the last year.
Of course, any time a recycler in particular closes down, that’s a huge disappointment.
The food industry continues to be under tremendous pressure as rising input costs and a pullback in consumer spending compress margins across the board.
What impacts are you seeing? Leave a comment to let us know!
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