10 Totally Vulnerable Company Towns
BOSTON (MainStreet) -- "You load 16 tons, what do you get/Another day older and deeper in debt/Saint Peter don't you call me 'cause I can't go/I owe my soul to the company store." -- "Sixteen Tons" by Tennessee Ernie Ford.
From the early days of railroads, timber and mining, companies did more than just bolster local economies -- they created them.
In modern times, the idea of the "company town," a village owned and operated by the boss, may seem antiquated. They still exist in various forms, however, and their fates fluctuate with the fortunes of their benefactors.
There are also cities and towns, as illustrated by the Detroit area, where overreliance on a single industry has proved costly and heartbreaking.
We took a look at 10 cities and towns that either are or could become at risk because of their dependency on a single company or specific industry. 
Scotia, Calif.
You know a company town has hit rough times when it is owned by a hedge fund.
In its better days, Scotia -- near Eureka -- was carved out of land owned by Pacific Lumber. It was incorporated in 1863.
Over the years, times were good. It weathered the Great Depression better than most communities and even had a bit of a housing boom from the 1920s to 1950s. A school, churches, shopping center, hotel and post office served its residents.
Things went bad in 2006 when the company began seeking buyers for the residential and commercial property it owned. The following year, the once mighty timber company filed for bankruptcy. Marathon Asset Management, a New York-based hedge fund that was Pacific Lumber's largest creditor, was awarded ownership of the town during bankruptcy proceedings.
To its credit, the fund continued to invest in community amenities even as its population dropped. At the time of the 2010 census, the once thriving small town had dwindled to about 850 residents in 265 households.
Last summer, however, residents faced an ultimatum. Marathon gave them the option of either incorporating as an independent town or face being sold off.
In September, residents voted for independence. Time will tell how its residents adjust to weaning off corporate benefactors for the first time in their town's history. 
Las Vegas
The very definition of a single-industry town can be found among the glitter and neon of Las Vegas.
The epicenter of American casinos, however, has a gambling problem. As in: Not enough people are doing it.
In fiscal 2011, the 22 casinos in the Las Vegas Strip area produced gaming revenue of more than $72 million, according to UNLV's Center for Gaming Research. But it's been tough sledding for the glitzy gambling palaces. When it ditched promotional offers and most comps last year, Las Vegas Sands(LVS) , owner of the Venetian and Palazzo, saw its casino revenue plummet 47%.
As Caesars prepares for an IPO, its attraction to investors may prove to have more to do with its more profitable online enterprises rather than its U.S. locations.
When investors are placing bets on other big gaming companies, their hope typically focuses on profitable locations overseas (in Macau, for example), rather than slumping properties in the U.S.
According to state statistics, Clark County -- home to Sin City -- had 148 casinos grossing $1 million or more in gaming revenue during FY 2011. They generated a combined net loss of $3.9 billion.
Las Vegas officials and workers need to hope for considerably more luck in the years ahead, lest the industry they have gone all-in with goes bust. 
Wilmington, Ohio
In November 2008, shipping giant DHL announced that it would cut nearly 9,500 jobs as its parent company sent its U.S. air-cargo service to UPS(UPS) .
The move was a shock to the system for Wilmington, a city of 12,500 residents, many of whose jobs depended -- directly or indirectly -- on hosting a DHL hub. Before that company came to town in 2003, Airborne Express had created 8,000 jobs when it took over that same plot of land, an abandoned Air Force base, for use as a shipping hub.
The DHL layoffs shed about 6,000 workers. Additional layoffs in 2008 bled another 3,000 jobs from the Wilmington economy.
Today, the town still struggles, hoping to attract businesses through a jobs initiative offering financial incentives to companies in the "green" sector. 
Redmond, Wash.
Perhaps it's a bit disingenuous to include Redmond on a list of at-risk "company towns." It's doubtful technology giant Microsoft(MSFT) is going anywhere anytime soon.
But just as the timber and railroad towns of decades past once seemed perpetually thriving, will Microsoft continue to dominate that local economy a decade from now? Fifty years from now? A century from now?
According to the Redmond Chamber of Commerce, Microsoft is the largest employer (25,000 jobs) for the city of nearly 54,000 people. As goes Microsoft, so goes Redmond.
The Chamber of Commerce surely understands that risk, or at least the perception of it. Its Web site counters that the city also has thriving companies in biotechnology, medical devices, telecommunications and aerospace. Beyond Microsoft, high-profile employers include AT&T(T) , Honeywell(HON) and Genie Industries, which employs more than 3,000 people.
Still, when looking at Microsoft's dominant role in the Redmond economy and considering the sprawling amenity-filled megaplexes in California that companies such as Google(GOOG) and Facebook call home, one might wonder whether these high-tech headquarters are merely a modern variation of the company town. 
Newton, Iowa
Commercials paint the iconic "Maytag repairman" as a lonely guy. It may have something to do with his move out of the friendly town of Newton, Iowa.
For decades, the appliance maker was the town's largest employer and the line between company and community was blurred. A proud civic boast: The first mechanical washing machine was built there by company founder Fred L. Maytag. At peak, the company employed more than 5,000 Newton residents.
In 2006, however, Maytag was bought by Whirlpool(WHR) . Almost immediately there were cutbacks and downsizing. Within a year, a decision was made to shutter the manufacturing plant and corporate offices, eliminating 1,800 job from the small town of 15,000.
Despite the occasional glimmer of hope -- a telecom company and wind turbine maker are among the new companies that have set up shop -- Newton is still struggling to move beyond the company that built it up.
Rochester, N.Y.
Last month, we looked at 10 Cities Poised For Greatness In 2012. Among those cities -- and a controversial pick based on reader feedback -- was Rochester. The city earned this optimism in part for having a resilient economy and relatively stable housing market.
There are plenty of folks hoping they can believe that prognostication, especially as Kodak(EK) , the camera company that has long propped up the local economy, looks to soon be a thing of the past.
Kodak filed for bankruptcy Jan. 19, and the impact of its reorganization remains to be seen.
"The most fundamental fact of this announcement is the physical impact as much as the economical impact," Rochester Mayor Tom Richards told that city's WHEC-TV.
A part of the city since around 1880, the company has at times been Rochester's largest employer (62,000 jobs at peak), but the writing has been on the wall for years -- first as digital cameras replaced film, and as Kodak lost market share in the crowded point-and-shoot space.
From a philanthropic standpoint, the community may also take a hit.
"It is likely that we will have to make difficult choices about our philanthropic investments and activities," Kodak's Web site cautions.
Perhaps a bit more reassuring is this other corporate statement:
"Kodak will still be headquartered in Rochester. This is our hometown and our largest cornerstone in the U.S. and worldwide. We are proud of our long-standing history in Rochester, and our objective is to emerge as an ongoing business enterprise that is assured of long-term viability and so better able to be a vibrant member of this community and all communities of which we are a part." 
Huntsville, Ala.
Should Newt Gingrich be eleted president, and make good on his promise to build a moon colony, the people of Huntsville may be among the happiest.
Government cutbacks to the military and NASA have meant tough times for a town whose residents rely on the aerospace industry.
The cancellation of the Constellation rocket program meant $1 billion in lost contracts and hundreds of layoffs by companies counting on them. Roughly 500 jobs have been shed because of budget cuts at NASA's Marshall Space Flight Center.
Last March, another 130 jobs were lost when Boeing(BA) was caught in the crossfire of federal budget cuts to a missile defense program it was working on.
In the 1970s, Huntsville's local economy was nearly ruined when NASA canceled the Apollo space program. The eventual restoration of NASA programs such as the Space Shuttle brought back money and jobs. But with NASA and military cuts almost certain in the years ahead amid a growing federal defecit, it must feel like deja vu for residents. 
Elkhart, Ind.
Shrinking disposable income and with high fuel costs have been bad news indeed for the companies that make motor homes and recreational vehicles.
The epicenter of that pain was Elkhart, a town that proudly proclaims itself the "RV Capital of the World" and is home to the RV/MH Hall of Fame, Museum and Library.
In 2008, as the recession was taking hold, this industry helped keep unemployment at bay at just over 4%. Within a year, that rate soared to 10%, then 13% and up to 18%. At its worse, nearly 20% of the town was unemployed, many losing their jobs as suddenly as the market for the vehicles they made crashed. Nearly 500 companies in the town were forced to enact layoffs.
An uptick in RV sales has helped a little, and unemployment has dropped to just over 11%. A new idea, floated by auto industry commentators, is promoting the town as an ideal place for electric car manufacturing. Time will tell if that idea, or other novel ways to leverage its skilled workforce, will take hold. 
Alcoa, Tenn.
You know a town is tied to its top employer when its name decorates the mucipal flag.
Kohler, Wis., is home to the plumbing giant of the same name. Hershey, Pa., is known for its many bars -- of the chocholate variety. Overseas, the Russian community of Gar was "bought" for $150,000 in 2010 and renamed after the Web site TorrentReactor.
Alcoa, Tenn., has a similar distinction, taking its name from the company and the massive aluminum smelting plant it runs there.
Being dependent on an employer the way Alcoa(AA) is means it benefits when the company does well, suffers when it doesn't.
In 2009, company officials announced a layoff of 13,500 (13%) of its global workforce, as well as 1,700 contract positions. That meant closing a town plant and shedding roughly 450 local jobs.
As tied as it is to its namesake's success, this is one of the few places where commodity futures have a direct impact on quality of life. 
New Orleans
New Orleans is a classic American city, but one perhaps overly dependent on tourism to grease its economic engine.
That became sadly apparent after the disastrous double whammy of Hurricane Katrina in 2005 and the BP(BP) oil spill.
After Katrina, there was a full-court press to rebuild and remarket the city, a task made a little easier by the fact most of its famous French Quarter was spared from the most horrendous storm damage. More than $742 million was spent to repair and upgrade local hotels, the Superdome and the Ernest N. Morial Convention Center. By 2010 tourism was again on the rise, approaching 8 million visitors, more than twice the number after the hurricane.
Then the Deepwater Horizon oil rig exploded, flooding the Gulf of Mexico with poisonous sludge, ravaging beaches, killing wildlife and shutting the local seafood industry.
Tourism in Louisiana, as a whole, generates $8.3 billion in annual spending and employs one out of every 12 people in the state. For New Orleans, a focal point of that business, the oil spill had effects that persist.
A recent report by Louisiana's Department of Culture, Recreation and Tourism does at least offer good news: Business travel is expected to make up for the some of the loss of leisure travel by 2013. Nevertheless, the tourism industry is still on track to take a $295 million hit.
-- Written by Joe Mont in Boston.
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