Factory furloughs across the U.S. are becoming permanent closings, a sign of the heavy damage the coronavirus pandemic and shutdowns are exerting on the industrial economy. Those factory shutdowns will further erode an industrial workforce that has been shrinking as a share of the overall U.S. economy for decades. While manufacturing output last year surpassed a previous peak from 2007, factory employment never returned to levels reached before the financial crisis.
Layoff notices from states across the country indicate a rise in permanent factory closures in recent weeks. In one, Blue Bell Mattress Co. said it was closing its plant in Roseville, Mich., after losing its only two customers within several weeks. First, furniture chain Art Van Furniture LLC filed for bankruptcy in early March. Weeks later, Connecticut-based chain Bob’s Discount Furniture canceled orders and closed its warehouses to new deliveries because it had closed its stores during the crisis.
