` Tennessee Plant Closure Erases 136 Jobs and $10M From Local Economy - Ruckus Factory

Tennessee Plant Closure Erases 136 Jobs and $10M From Local Economy

WSWS – X

A manufacturing plant in Washington County Industrial Park, Telford, Tennessee, plans to shut down soon. This move will wipe out 136 jobs and cut millions of dollars in local wages by late 2026. The news comes from a WARN notice, which warns workers about big layoffs. It shows how shaky East Tennessee’s factories have become as the car industry changes fast.

JTEKT North America filed the notice on December 4, 2025. The plant makes car bearings and steering parts. Layoffs start on April 30, 2026, and continue until August 31. That date marks the end for all 136 workers. For years, this site gave steady jobs to local families. Now, tough industry problems force it to close. Workers face months of worry as operations slowly stop.

Longtime Car Industry Links Break

CBC – Facebook

The plant played a key role in Telford’s economy. The area has a long history of factories. JTEKT picked this spot to serve North American car markets. The company runs about 23 plants across the U.S., employing around 5,000 people total. But car makers now focus on electric vehicles, and sales have slowed. Suppliers like JTEKT must cut costs and combine operations.

Other JTEKT plants stay open in places like Morristown and Vonore, Tennessee. Still, the Telford closure proves that even old, solid factories struggle. Supply chain problems and the push for cheaper production hit hard. Families who counted on these jobs now scramble for answers.

Local Economy Faces Big Losses

Photo by PEO ACWA on Wikimedia

These 136 jobs paid about $10-11 million in wages each year. That figure comes from data by the Motor Equipment Manufacturers Association on auto parts workers. Experts say each factory job supports 4.5 more jobs in supply chains and local spending. So, the total hit could reach 612 jobs and $15-18 million in lost wages.

In this rural spot, one big employer often sets the pace for businesses, schools, and homes. Shops and services will feel the squeeze right away. Some workers get severance if they stay until the end. JTEKT offers transfers to other sites, but few take them. Long commutes, family ties, and high housing costs get in the way.

State Steps In with Quick Help

AO Recycling Telford – Facebook

Tennessee’s Department of Labor and Workforce Development acted fast. They teamed up with the Northeast Workforce Development Board and First Tennessee Development District. Services include job search help, training programs, job fairs, resume workshops, and connections to logistics companies.

Officials want to move workers into new roles quickly. But matching their special skills in a rural area is tough. Retraining might mean lower pay or longer drives to work. It won’t fully replace the plant’s steady benefits.

Wider Car Industry Shifts Shake Region

LinkedIn – Abhiram Dinavahi

Across the U.S., auto suppliers close plants as the switch to electric vehicles continues. Freight slows down, and companies merge to survive. Ford moved work in Kentucky, and trailer makers cut jobs in Pennsylvania. Southern states like Tennessee lose more factory and logistics jobs.

JTEKT’s decision fits this trend. The company streamlines to handle weak demand. Locals voice anger at community meetings. Leaders talk about redeveloping the site. Workers deal with broken retirement plans and lost loyalty to their jobs. As the shutdown clock ticks toward 2026, state aid offers some hope. Yet the gap in wages and community pride will last. The area wonders if new businesses can step in before tough times take hold.

Sources:

“JTEKT North America Corporation LLC TDLWD WARN Letter.” Tennessee Department of Labor and Workforce Development, Dec 4, 2025.
“JTEKT closure to affect 136 employees in Telford.” Times News, Dec 7, 2025.
“The Economic Impact of the Motor Vehicle Parts Manufacturing Industry on the United States.” Motor & Equipment Manufacturers Association, Aug 2016.
“JTEKT North America in Telford to close facility, more than 100 employees affected.” WCYB, Dec 4, 2025