JG Kern to Lay Off 156 Workers by End of 2026
The Sterling Heights factory will close following the end of its business relationship with Ford.
Updated on Oct. 15, 2026 in Manufacturing
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JG Kern Enterprises is set to permanently lay off 156 employees and close its 200,000-square-foot factory in Sterling Heights by the end of 2026. The move follows Ford's decision to terminate its partnership with the manufacturer.
Why it matters
The closure reflects broader difficulties in the U.S. manufacturing sector as companies struggle to compete with significantly lower labor costs abroad. JG Kern Enterprises could not overcome the wage disparity when pitted against international competitors.
The average annual U.S. manufacturing salary is $77,000, compared to $4,477 for factory workers in India. JG Kern Enterprises currently operates an annual revenue range between $30 million and $50 million.
The players
JG Kern Enterprises
This manufacturing firm has provided components to the automotive industry since its founding in 1967.
Ford
This major American automaker is currently restructuring its supply chain and production requirements for its electric vehicle lineup.
The details
Ford ended its business relationship with JG Kern Enterprises after discontinuing the F-150 Lightning electric truck in 2025. While the factory is currently finishing existing work for the automaker in a limited capacity, production is shifting to suppliers in India and the United States.
Timeline
JG Kern Enterprises was founded in 1967.
Ford ended production of the F-150 Lightning in 2025.
JG Kern Enterprises expects to complete staff layoffs by the end of 2026.
Market Landscape
This factory closure illustrates the ongoing consolidation of domestic supply chains as automotive manufacturers reevaluate their reliance on U.S.-based partners. The industry is increasingly shifting production to lower-cost international hubs to maintain margins in a competitive EV market.
Local residents face the loss of 156 manufacturing jobs in Sterling Heights as the plant winds down operations. Consumers may also see changes in component sourcing as automakers move production to international locations.
The takeaway
The closure underscores the significant economic pressure facing domestic suppliers when competing with lower global labor costs. Employees and local businesses in affected regions should monitor supply chain shifts as automakers continue to realign their production strategies.
Further reading
For more information on trends impacting the industrial sector, visit Manufacturing.
Source note: This article includes information reported by Detroit Free Press.
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