Community Revitalization from Reshoring
Glimmers of Hope: Lake City Example
Lake City, South Carolina (population: 5,900) is a common example of Small Town USA that has been affected by the loss of manufacturing jobs over the decades. While there is still a large Japanese-owned plastics manufacturing plant within the city limits, there are a few dozen abandoned old factories and warehouses scattered nearby. Since I have a child that lives near Myrtle Beach, I have passed through Lake City at least a dozen times in the last few years, during the time that HermitCrab was an idea that was forming in my head.
Just after we passed through town on the way to Myrtle Beach, I would see a couple of factories on the right side of the road, and tell my wife, “One day HermitCrab is going to occupy that building!” She would roll her eyes and tell me to keep driving because we were getting close to the beach. One site, in particular, was recently purchased, renovated, and leased out to a company that will use it to provide packaging services. The broker of the deal, Holland Industrial Services, went the extra mile, beyond its normal asset liquidation and real estate sales, to make an investment in the property and bring new life back to that building. Alex Holland said this in the Press Release:
"We are proud to be part of this community's revitalization," said Alex Holland, Senior Vice President of Holland Industrial Group. "This project isn't just about restoring a building. It's about contributing to the local economy, providing employment, and helping Lake City thrive as an industrial hub."(1)
Figure 1: Abandoned Lake City Rubber Factory Will Reopen Soon
Is this a HermitCrab story? Not exactly. Does this effort help revitalize Lake City? Heck yes! An ugly abandoned building brought back to life to provide jobs to the community. (author note: I wish I could have gotten that building – I am still a couple years out from being in that position). Kudos to Alex Holland and his team – I hope to work with them one day.
Mill Towns to Ghost Towns
Before power plants supplied energy via steam, coal, gas, or nuclear-powered generation, manufacturing of any scale required the energy of a flowing river to turn large paddlewheels which then allowed equipment to operate. Water power was largely replaced by steam power by 1850 and by electricity by 1900. As the newer forms of power allowed mills to move away from a few areas alongside rivers, larger mills concentrated near cities gradually replaced those watermills.
Entire cities were built around the mill, employing thousands of workers. These cities included schools, hospitals, fire stations, grocery stores, you name it. Entire families were contracted to work in the mills – this was the way of life in the Western World throughout the 1800’s through the early 1900’s. Mill Towns were a global phenomenon, with over a thousand mill-oriented cities across Europe and America. None of these mills, once the center of a town’s existence, are operating today, although some were fortunate enough to be restored into living space or storage(2).
Figure 2: Examples of Massive Mills No Longer in Operation
This topic is important to set the historical context that throughout history, conditions evolve that necessitate manufacturing being relocated. This form of evolution is normal, and the jobs generally remained within the country that consumed the products of these mills. Post World War 2 globalization, and the policies set into motion by the United States to preserve peace, led to the unnatural paradigm that jobs can go abroad. We can look back on those policies and see them for the disaster that they were. While the mill towns can’t come back, towns that were formed to support manufacturing can be restored by reshoring, and the benefits are obvious.
The Community Benefits of Reshoring
There are five key benefits to a greater community when manufacturing comes to town:
Economic Growth: New jobs increase the local economy by boosting consumer spending. The injection of income into households allows families to spend more on goods and services, supporting local businesses and attracting new ventures. This economic activity can lead to a thriving marketplace that sustains further growth and development, encouraging entrepreneurial endeavors and making the town more appealing to investors seeking vibrant and supportive business environments.
Population Stability: Job creation can help stabilize and even increase the population in a small town. With more employment opportunities, residents are less likely to move away in search of work elsewhere. Additionally, new jobs can attract people from outside areas, leading to population growth. A stable or growing population can support local schools, healthcare, and essential services, ensuring the wellbeing of the town's residents and fostering a more connected and supportive community.
Infrastructure Development: A growing workforce necessitates improvements and expansions in the town’s infrastructure. This can include better transportation networks, enhanced utilities, and upgraded facilities, which benefit the entire community. As infrastructure improves, the town becomes more attractive to new businesses and residents, creating a cycle of growth and prosperity that strengthens the foundation for long-term development and quality of life.
Community Engagement: With new jobs often comes a heightened sense of community pride and engagement. When townspeople are employed locally, they are more likely to participate in community events, volunteer for local initiatives, and invest time and energy into improving their surroundings. A vibrant community spirit can lead to improvements in civic amenities, enhanced public spaces, and stronger social networks, which contribute to the overall health and happiness of the town’s residents.
Education and Skill Development: Job creation can lead to increased educational opportunities and skill development for the local workforce. Employers might partner with educational institutions to offer training programs, internships, and apprenticeships, thereby enhancing the skills of current and future employees. This focus on education ensures that the local workforce remains competitive and capable, positioning the town for sustainable growth and making it an attractive location for diverse industries looking for skilled employees.
Conclusion: Mill towns and river-based factories are a thing of the past, but serve to remind us that changes are always on the horizon, sometimes for the better (new forms of power allowed larger factories to rise away from the water) and often for the worse (offshoring to our adversaries). The net effect is the same – small towns suffered, shriveled, and often shuttered. Only a manufacturing renaissance, often through reshoring, can bring some of these towns back to life. We need to start now.
Thank you for Reading! Come back tomorrow for Day 16: Skills and Training: The importance of workforce training for reshoring success. A well-trained workforce is essential to reshoring success, and getting there will require patience, investments, and technology.
Thanks for reading,
The HermitCrab Team
Footnotes:
(1) https://www.prnewswire.com/news-releases/holland-industrial-group-revitalizes-former-rubber-factory-in-lake-city-sc-302251407.html
(2) https://en.wikipedia.org/wiki/Mill_town#
