2025 is not shaping up to be a great year for Tennessee.
After a wave of recent factory closures has left workers across the state without jobs…
Unfortunately, the pain looks likely to continue.
More specifically, Tennessee is preparing for another blow to its manufacturing base as DeRoyal Industries announced plans to close its LaFollette facility, resulting in 153 confirmed layoffs. The medical and packaging manufacturer has filed notice with the state, confirming that operations will wind down through the end of 2025.
The Campbell County plant, a fixture of the local economy for decades, produces medical and healthcare products used across hospitals and clinics nationwide. Despite its long history in the region, the factory began scaling back work earlier this fall, with full closure expected by the end of 2025.
The announcement follows a year of tightening conditions across the manufacturing landscape. Rising costs for materials, shipping, and energy continue to strain margins. Broader trade and supply-chain challenges have compounded those pressures, leaving many mid-sized producers struggling to stay competitive against lower-cost operations elsewhere.
This is, of course, especially concerning given that healthcare has been one of the USA’s most resilient sectors this year – so if even healthcare suppliers are felling the pinch…well, it may mean that a recession is not too far around the corner.
The LaFollette closure is already rippling through the surrounding community. For years, the facility supported not only its direct workforce but also local suppliers, maintenance crews, and freight carriers. When the production lines stop and the gates close, that economic network will lose one of its key anchors.
Tennessee has seen several manufacturing cutbacks this year across industries tied to packaging, consumer goods, and healthcare products. Analysts say these closures reflect an industry under stress, where older plants face tough economics in the wake of higher input prices and global market shifts.
As 2025 winds down, the DeRoyal plant stands as another sign of how even established employers are finding it difficult to maintain large-scale operations under current conditions. Please join us in wishing the impacted workers well as they embark on their next chapter.
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