What happens when a major contributor to a small town’s water revenue disappears? In Northampton, a city that relies on retail services and manufacturing to sustain its financial health, the Coca-Cola bottling plant on Industrial Avenue has been a vital part of the local economy. The plant, which contributes significantly to the town’s water revenue, announced plans to close—but recently delayed its shutdown by one year.
In 2023, the Coca-Cola plant accounted for 22% of Northampton’s total water revenue, generating $1.76 million of the city’s $7 million water system budget. Beyond water revenue, manufacturing jobs—including those at Coca-Cola—make up 7% of local employment, with the plant alone providing 319 jobs. In comparison, retail services, a major driver of the local economy, contribute 22% to local employment.
As Northampton’s largest industrial site and biggest water consumer, the plant’s closure will leave a noticeable financial gap. In anticipation, the facility has begun scaling down operations, already reducing water usage by 38% and sewer usage by 28%. The city has responded by raising water rates by over 200% to offset lost revenue from water and sewage utilities. Once the plant ceases operations entirely, further revenue losses and potential rate hikes for residents are expected.
Meanwhile, Massachusetts is experiencing one of the fastest-growing unemployment rates in the country. Manufacturing remains Northampton’s fifth-largest private sector industry, and the Coca-Cola plant alone accounts for more than 30% of all manufacturing jobs in the city. For now, keeping the plant open provides stability for workers and helps sustain the local economy.
Despite these economic benefits, critics argue that Coca-Cola’s heavy water consumption carries hidden costs. The company has faced scrutiny for its environmental impact, particularly in drought-stricken areas like California, where residents were subject to mandatory 25% water usage reductions while the company continued its bottling operations. The disparity between corporate and residential water regulations raises concerns about environmental sustainability and equitable resource management.
The decision to delay the plant’s closure offers temporary relief, but it does not fully address Northampton’s long-term financial and employment challenges, as the city still faces revenue and job losses once the plant ultimately shuts down. While the extension provides short-term stability, Northampton still faces the task of securing a replacement that can support both the local economy and the sustainability of its water resources.