Nearly 200 Industrial Manufacturing Industry Plants Scheduled to Close Over the Next Three Years

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Researched by Industrial Info Resources (Sugar Land, Texas). The fact that manufacturing in America is changing is nothing new, but it is interesting to see just how many plants are closing and how many people will need to find other sources of income to support their families. According to Industrial Info, from the beginning of 2006 through the end of 2008, there are 199 plants in North America that are expected to close their doors within the Industrial Manufacturing Industry. Those 199 plants employ over 79,000 people.

Click on the image at right to view a breakdown of the employment loss by year and country

Most of those cuts will occur in the U.S., which will close 165 plants and eliminate over 64,000 jobs. The regions that will be affected the most appear to be the Southeast, Mid-Atlantic and the Great Lakes with each losing between 30-32 plants and losing 9,000-13,000 jobs. It is also important to remember that our neighbors to the north and south are also experiencing similar pains. Canada will shut the doors at 21 plants losing nearly 12,000 jobs and Mexico will lose 3,600 jobs spread across thirteen plants. Most of the jobs in Canada will be eliminated from the state of Ontario, which is expected to lose twelve plants, which employ over 10,000 people.

It is no surprise that most of the plants will be automotive-related facilities. There are over 30 plants in the automotive industry that are expected to close in over the next two years. This also explains the large number of plants in the Ontario and the Great Lakes regions expected to close their doors.

It is also important to remember when one company closes its doors another one can reopen them. With today’s high construction costs and companies trying to open their plants as soon as possible it is not shocking to see companies purchasing and reopening closed and shuttered plants. Even with some of the mammoth assembly plants that have recently closed, it is becoming fairly common to see these buildings house several companies under one roof, thereby sharing construction and building maintenance costs.

Even though there are over 79,000 jobs to be lost through 2008, there are 742 plants scheduled to open during the same time period adding approximately 155,000 jobs. It is sometimes necessary for companies to go through rough times to become more inventive, creative and competitive to be able to continue to thrive in a global economy.

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Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.