Worcester Business Journal

wbjournal.com | February 23, 2026 | Worcester Business Journal 9 The Future of Rent Collection & Escrow Management ZRent and ZEscrow from Cornerstone Bank. Fast | Efficient | Convenient | Cost-Effective Scan QR code to connect with us. Member FDIC | Member DIF 774-745-8698 cornerstonebank.com his Worcester facility, Zlody recommended he reach out to the Mercy Centre in Worcester, an initiative of the Catholic Char- ities Worcester County working to empower adults with developmental disabilities. Zlody was connected with the nonprofit because of her late brother Michael, who had Down syndrome. Vargas did as she suggested, and today, folks from the center bottle vinegar once a week. American Vinegar doesn't have a storefront, so Vargas directs requests for in-person shopping to Zlody's store, which exposes customers to more prod- ucts from local and minority makers. "He's helped drive people to my space, which in turn, helps me sell things to other people that are coming in just for that [from] other makers that are Worcester-based, or Massachu- setts-based, or woman-based, or first generation-based," said Zlody. More room for manufacturing American Vinegar mainly operates out of a 2,000-square-foot facility with an additional 1,500 square feet nearby. Vargas wants $1.5 million in capital to relocate to a larger site by the end of the year, eyeing a space between 10,000 and 15,000 square feet close to Worcester. Unlike other manufacturers, Vargas doesn't have complex structural needs, as a lot of the space will house barrels to age his vinegar. "Even if somebody were to picture a brewery, they would be picturing something that has a much higher level of infrastructure build out than we require," said Vargas. "We're ... a much simpler type of business." Worcester County is experienc- ing unprecedented growth for open manufacturing space. Vacancy rates for industrial space, which includes manu- facturing, have rapidly risen since 2022, largely because of new inventory on the market, said Koogler. In the last three years, 8 to 9 million square feet of industrial space has come on the market. In 2025, uncertainty regarding tariffs made manufactur- ers hesitant to implement large-scale expansion, said Koogler, but he expects that to change this year. For manufacturers like Vargas, Worcester's labor market is healthy, Koogler said. In more affordable Cen- tral Mass. communities like Lunenburg to the north or Blackstone to the south- east, hiring enough workers for large manufacturing starts to become difficult as population density tapers off. "You're not going to have the employ- ees that are able to get out there. You're probably gonna end up having to pay more in benefits and concessions to em- ployees to try to convince them to get out there than you would saving money and rent," said Koogler. American Vinegar has primarily sold direct to consumer, but Vargas is beginning to sell half-gallon plastic jugs of vinegars to restaurants where glass is oen not allowed in the kitchen. One of American Vinegar Works' largest customers is a three Michelin-star restaurant in Chicago. Vargas is in talks with more food distributors. He wants to develop products using his vinegars, making his flavors accessible for con- sumers with less cooking knowledge. "ere [is] this really great oppor- tunity to be the owner of a niche, and that's what we're doing here," he said. Tina Zlody, director of The Market Pantry The Crowley family is proud to continue the legacy of our founder, father, and grandfather Ralph Crowley Sr. He took us skiing 50 years ago and look what happened! He'd like us to remind you that February is a great time to learn to ski or snowboard and this year is serving up the best conditions we've had in a while! Check out Wachusett.com for the latest conditions and deals. Carolyn Stimpson and Jeff Crowley Manufacturing is a core Central Mass. industry Manufacturing has been a cornerstone of the Central Massachusetts economy since the Industrial Revolution. While the region, and Worcester in particular, is often considered an eds & meds economy based on health care and higher education, manufacturing outpaces both in terms of economic output, having generated $6.5 billion in GDP for the region in 2024. When polled online, nearly four out of five WBJ readers said manufacturing is central to the region's economy. Do you consider manufacturing to be a core industry in Central Massachusetts? 79% Yes 21% No $ $ $ W

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