Key Takeaways:
Stanley Black & Decker is ending production at its last hometown factory in New Britain, Connecticut, a city intertwined with its 181-year history, citing a consumer shift to double-sided tape measures. The move will result in 300 layoffs and marks the end of an era for the "Hardware City," where the company once employed 5,000 people.
"There has never been a point in time where we ever heard anything about there being an issue with single-sided vs. double-sided," said Pete Cayer, a former worker at the plant's testing lab who was laid off last year. Current and former workers describe the rationale as a cover for offshoring to a lower-cost country.
The company said demand has slumped for the New Britain plant's single-sided tape measures, such as the iconic FatMax. Stanley equipped its factory in Thailand, where labor is roughly a quarter of the cost, to produce double-sided tapes about six years ago. The company has boosted its tape-measure imports from Thailand in recent years, going from roughly 555 shipping containers in 2019 to 789 last year, according to ImportGenius data.
The closure underscores the persistent challenge U.S. manufacturers face against lower-cost overseas production. While Stanley invested in the popular FatMax tape measure in 1999, its main rival, Milwaukee, began offering double-sided tapes as early as 2004. The decision not to invest in similar capabilities at its U.S. plant has led to the shutdown, which is scheduled to be completed by May 18.
Founded in 1843, The Stanley Works grew into a manufacturing titan, with its New Britain factories stretching for nearly a mile. The city's seal, a beehive, represents the companies that built the town, with Stanley being the most prominent. The company's PowerLock tape measure, introduced in the 1960s, became a household name. However, like many U.S. industrial centers, New Britain has seen its manufacturing base erode over the decades as companies moved production abroad.
The New Britain plant was the birthplace of the FatMax, a wider, more durable tape measure that became an industry standard. Its ability to extend for 10 feet or more without buckling made it a favorite among trade workers. However, the company's focus on producing double-sided tapes in Thailand ultimately sealed the fate of the Connecticut factory.
Stanley has offered severance packages to the affected workers and is providing job-hunting assistance. Local officials are optimistic that the displaced employees will find new jobs, pointing to a strong manufacturing sector in the state, including 8,000 open positions at submarine builder General Dynamics Electric Boat.
For the workers, the closure is a significant blow. Jonathan Grande, a former employee, said the pay at his new manufacturing job is significantly lower than the $30 an hour he earned at Stanley. "A lot of us came from nothing," Grande said, "so working in a plant like that... that's everything." The closure is not just an economic loss but an emotional one for a city that prides itself on its industrial heritage.
This article is for informational purposes only and does not constitute investment advice.
