Texas has been struggling all year.
As factory layoffs rapidly multiply…
And employers across Texas shed jobs…
It’s been tough sledding across the Lone Star State. And unfortunately, things are going from bad to worse.
More specifically, Smurfit Westrock recently shut down its containerboard mill in Forney, Texas – at the cost of at least 175 jobs. (Estimates are about 200, but we like to be conservative where possible.)
Unfortunstely, shutdowns like this Texas mill make a lot of sense given the steadily worsening business climate.
Since the launch of the trade war in April, we’ve seen a steep fall in US food exports as boycotts and retaliatory tariffs have taken their toll. Food companies have cut back production in response, and they’ve also reduced their orders for packaging and shipping – directly impacting companies like Smurfit Westrock further down the supply chain.
Of course, the problem then becomes – what happens to domestic demand?
Think about it this way – if a couple friends of yours lose their jobs…do you cut back spending? Add a little to savings, just in case?
Probably, right?
Well, as that same (reasonable) behavior spreads across the USA, you see slumping domestic demand for food, too – potentially leading to more layoffs, then more reduced demand, and then even more layoffs.
This is how recessions happen.
And unfortunately we’re already seeing troubling signs in Texas.
How are you planning to weather the coming economic storm? Leave a comment and let us know!
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment