Layoffs in Western North Carolina's manufacturing sector are raising economic concerns, particularly after nearly 100 workers, 3% of the workforce, were cut at Baxter's Marion facility. The layoffs are expected to have ripple effects on households, local spending, and overall business confidence.
The layoffs are tied to post-Hurricane Helene market instability, as well as broader economic uncertainties such as tariffs and political shifts. The manufacturing sector in Western North Carolina employs over 20,000 people in the metro region and more than 100,000 statewide in the mountains, making it one of the largest and highest-paying sectors in the region. Economists, such as Clark Duncan of the Asheville Chamber of Commerce, are warning of a ripple effect, where laid-off workers reduce spending and businesses cut investments in services, slowing the regional economy.
The lingering effects of Hurricane Helene have delayed recovery efforts. Six Western North Carolina counties, including Buncombe, Burke, Haywood, Henderson, Madison, and Yancey, have been pushed into more distressed economic tiers for 2026. This qualifies them for increased state funding, but also signals higher unemployment and weakened rankings. For example, Buncombe County's unemployment rank dropped 70 positions. The slow rebuilding pace is attributed to a lack of widespread flood insurance. Small businesses are struggling to retain staff.
Tariffs could add $627 per consumer annually, further reducing buying power amid rising costs of essentials. Housing costs are up 3.8% and energy costs are up 6% from mid-2024 to 2025, outpacing the 3.4% wage growth. While North Carolina forecasts 80,800 net jobs added in 2026, a 1.6% growth, Western North Carolina's recovery lag and rising unemployment, currently at 4.1%, highlight the region's vulnerability. However, over 310 manufacturers posted 4,400 openings last year, suggesting reemployment potential.