A national policy of reindustrialization has been undertaken to rejuvenate the nation's industrial base. These policies, if effective, will accelerate the economic decline of communities vulnerable by fact of geographic location or dependence upon a marginal plant in a receding industry. The community economic crisis that results from a loss of a major employer will produce increase in a range of mental and behavioral disorders. At the same time, mental health agencies will experience a declining resource base with which to respond to the increased demand for services. Mental health administrators must choose between adopting intervention approaches that have been long resisted or admit their inability to meet the challenge. Direct service approaches will be too costly and ineffective.