The original planning for Arthurdale included a factory to make post office equipment. However, Congress disapproved of a federal project competing with independent businesses and a satisfactory replacement to provide homesteader jobs was never found. Since the federal government could not pay for business construction, in January 1936, the Arthurdale Association purchased the factory building to house a vacuum cleaner factory.
From 1936 to 1942, four different businesses operated in the Arthurdale factory buildings including the Electric Vacuum Cleaner Company (1936-1937), the Phillip-Jones Shirt Company (1937-1938), the American Cooperatives tractor factory (1939-1940), and the Brunswick Radio and Television Company (1941-1942). With its rural location, its distance to markets, and nationwide economic problems, businesses had a difficult time succeeding in Arthurdale.
During World War II, Silman Manufacturing and Ballard Aircraft Company provided employment for homesteaders in their respective war-related factories. Silman employees won the Army Navy Production Award that was only earned by five percent of the businesses making war materials. However, both companies closed at the end of the war, and by 1947 the federal government had sold all Arthurdale buildings into private ownership.
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