RUTHERFORDTON—PCA Packaging Corporation of America, is shuttering its Rutherfordton plant for good. Over the past few weeks, this is the third major employer in Rutherford County that has announced it is closing its doors.
PCA will officially shut down its local facility April 21.
According to Rutherford County Economic Development Director Birgit Dilgert, this will affect a total of 38 employees.
Officials from Rutherford County Economic Development, the local NC Works office, and Isothermal Community College representatives, as part of a rapid response team, will be meeting with employees at PCA next week to discuss options, opportunities, and a way forward regarding future employment and possible job training.
PCA is a manufacturer of corrugated boxes. Dilgert said the company did not offer specific reasons for the shutdown.
Milliken announced in February that its Rutherford County textile factory in Golden Valley will be closing, also in April. This will affect 103 employees, though some are expected to take jobs at other Milliken locations.
FreightWorks Trucking in Rutherfordton, which operated 186 trucks and had 140 drivers, also announced its closing last week. Not all of these drivers were Rutherford County-based.
Dilgert says these announcements are clearly a blow to the local economy, but does not necessarily represent a trend.
“These are three very different situations, in three different economic sectors,” Dilgert said.
According to Dilgert, the Milliken factory had issues with aging equipment and machinery that needed to be replaced. But because of supply-chain issues, it would have been several years before that could happen.
FreightWorks cited a freight industry recession, and other economic pressures that led to its abrupt closing.
Officials agree that the economy, while improving, remains fragile.
“It is my belief that our economy is in a fragmented, fragile state,” said Rutherford County Commission Chairman Bryan King. “While some are seeing improvements, others are not. The impact of inflationary pressures, supply chain limitations, and the federal decisions on interest rates, are placing many individuals and companies in a difficult economic position like we haven’t seen since the great recession of 2008.”
Rutherford County Manager Steve Garrison agrees that it is concerning, any time there is a business or industry closure. But he also points out that Rutherford County may be in better position to absorb some of these new job losses, than previously.
“We have a severe worker shortage in Rutherford County, which means that we have the ability to absorb these losses,” Garrison said Monday. “We have a large number of public sector and private sector employers (such as the school system, local governments, commercial retail establishments, and industries/manufacturers), who pay above the median income and offer benefits, but they are struggling to recruit new employees.”
Garrison said he is pleased that the rapid response team is involved with assisting the affected employees.
“They are discovering that many of the employees are already transitioning into new job opportunities,” he said.
A job fair event is also planned for April 20 at ICC.
“It is clear that the continued national inflation and supply chain issues continue to erode the fiscal capacity of private sector and public sector employers,” Garrison added. “It is critical that our national leaders prioritize correcting these issues.”
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