@fansy,
A lot of small towns, especially in the more rural parts of the country, have only one major factory/company located nearby, {we had one in our entire county} these towns become very dependant on said companies, and when they move out....overseas or to Mexico, it can be devastating for the town and surrounding area. It's a trickle up effect, that can wipe out a city seemingly overnight....the larger cities can handle the loss far easier....lose 500 jobs in a city of 250,000, no big deal....500 jobs in a city of 5,000, whole nother story.
So, it just basically means...a town that had "the" factory ripped/jerked/unplugged from the community, and has suffered a great deal.