Massachusetts’ struggling economy is taking another hit as yet another factory prepares to close its doors — this time before Halloween.
Following a series of factory shutdowns earlier this year, the state had hoped for some positive economic news. Instead, Coffee Holding Co. has announced plans to close its West Andover factory by the end of October, a move that will cost dozens of good-paying jobs.
The company pointed to the decline in grocery store shelf space for regional coffee brands as a major factor. Many retailers are increasingly favoring national brands, a trend that’s been well-documented across the industry.
However, broader economic pressures are also at play. Rising coffee prices, driven by tariffs on imported beans from Brazil, have pushed production costs higher. At the same time, the food and beverage sector is feeling the strain of a slowing economy as consumers cut back on spending amid growing recession fears.
These combined challenges — higher input costs and shrinking consumer demand — have squeezed profit margins, forcing coffee companies to find ways to reduce expenses.
As a result, Coffee Holding Co. plans to shift operations to its New York facility to cut overhead and transportation costs.
While the business decision may make financial sense, it’s devastating news for Massachusetts workers, who now face unemployment just as the holiday season approaches.
If you know of any job openings in Massachusetts, consider spreading the word — local families could use the help.
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