Tennessee has become a focal point of this year’s American manufacturing decline.
After years of steady job growth driven by low taxes and minimal regulations, the state is now losing factories at an alarming rate.
Unfortunately, the trend shows no sign of stopping.
The DeRoyal facility in LaFollette, Tennessee—known for producing a wide range of tools and instruments for healthcare settings—will shut down primary operations by the end of this month, with a full closure planned by the end of 2025.
This move will cost Tennessee 153 manufacturing jobs, as the company can no longer profitably produce custom procedure trays—sterile kits used for specific surgical procedures.
The news is especially troubling because healthcare has remained one of the most resilient sectors in the U.S. job market this year. Without the job gains in healthcare and retail, the U.S. job market has actually contracted so far in 2025.
Could this be an early warning sign that healthcare is also sliding toward a recession, or does another explanation better fit the data? Share your thoughts in the comments!
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