Consolidation

Business trends bad news for America’s blue-collar workers

It’s a familiar story.

A small town depends on a major employer for a big art of its economic life. A big company they think will be there for years to come.

Until it isn’t.

Last week, Swedish company Husqvarna, which makes outdoor power equipment such as lawnmowers and chainsaws, announced it would be closing it’s production facility in Nashville, Arkansas, by the end of next year.

The plant had played a big role in Nashville for more than 40 years.

According to a company press release, Nashville operations will be consolidated with plants in South Carolina, Brazil and China.

The company says the move is part of a “strategic transformation” and will “create value.”

Well for the company at least. Not so much for Nashville.

The closing will mean a direct loss of about 650 jobs at the plant. A lot of good, blue-collar jobs. But anytime a major employer shuts down, there’s a ripple effect. There will almost certainly be other job losses from businesses that provide goods and services to Husqvarna and it’s workforce. And it will mean harder times at restaurants, retailers and other businesses that depend on the plant’s employees for a major chunk of their business.

In others words, all of Nashville will feel the fallout from this closing.

It would be easy to paint Husqvarna as some kind of villain here. But We understand any company has to do what management believes the right course for its business. Sometimes that means making tough decisions that impact workers and communities. Husqvarna isn’t the first company to shut down and leave a small town and it won’t be the last. And Nashville isn’t the first small town to suffer the consequences, nor will it be the last.

The question is what other town like Nashville — and workers —can do to prepare for the same situation. Because with the rise of automation and artificial intelligence, the pace of factory closings and consolidations will on increase. And with that a loss of the blue-collar worker’s share of America dream we used to know.