As the first elements of sequestration’s impact on the Defense industrial base begin to take shape, observers inside and outside the Pentagon worry about small businesses.
The Federal Aviation Administration is slated to lose $1 billion from its budget if Congress does not act to prevent sequestration, according to a study released by the Aerospace Industries Association. But the cuts would ripple throughout the nation’s economy. About 100,000 jobs throughout the economy would be lost.
Civilian agency payrolls would be most vulnerable under automatic budget cuts set to kick in on Jan. 2. A new AIA and George Mason University study claims 229,000 non-defense federal jobs would be eliminated.
Roughly five months until across-the-board budget reductions, known as sequestration, are set to kick in, the Aerospace Industries Association unveiled a new report Tuesday that warned of jobs losses, billions in losses to the economy and a blow to wages from the $1.2 trillion, 10-year cuts in defense and domestic programs. The report comes amid a cacophony of election-year demands and partisan backbiting over how to avert the impending cuts that will only grow louder in the coming weeks. Lawmakers agree that it’s imperative that Congress move swiftly before the November election to avert the cuts, but have offered wide variations on a solution.
Letter, sent to 15 large vendors, asks for estimated impacts of sequestration on defense contractors.
Spending cuts at the defense department are trickling down to contractors.
Defense News reports that the Aerospace Industries Association says cuts to defense spending will hurt a major driver of the economy.
New plans for NASA put jobs and billions of dollars on the line. Marion Blakey, president and CEO of the Aerospace Industries Association gives us the private sector’s perspective
Aerospace Industries Association looks into policy decisions that affect certain sectors of the defense industrial base.