Karsten Homes notified its almost 130 employees the factory will be closing in two months.
In a city with only 5,800 residents the effects of Karsten Homes' factory closing are sure to be felt.
One resident we spoke to named George Boen said, "There are no jobs hardly in this town." Another resident Josie Escobedo said, "A big manufacturer around here, it's gonna hit hard."
While the closing of the Karsten Homes manufacturing facility does hit Breckenridge hard, the executive director for Breckenridge's Economic Development Corporation said it's not an indication of a city in decline, "As you know the housing industry has been on the decline the last couple of years."
Breckenridge has seen 4 different housing manufacturers close their doors, in fact the factory where Karsten Homes has operated for 6 years was originally built for another home manufacturer.
The Breckenridge chamber of commerce is hoping the building will attract a company from a more stable industry and in the meantime they'll get a quick fix from an unlikely source.
In 6 months a trash truck manufacturer will move in across the street from the Karsten Homes location, and will be looking to fill 70 jobs.
Virgil Moore said the city hopes to take some of those employees who work at Karsten Homes and put them in this new manufacturer.
Also with wind energy being a major player in west Texas, Breckenridge hopes to see a business along those lines in vacant property.
The chamber of commerce also formed an economic resource team to help laid-off employees find work in Breckenridge.