Defense and aerospace companies are calling on Congress to come to a decision to avert budget cuts.
Aerospace is about as international an industry as you can find. Yet the U.S. is a large exporter of aerospace products, and industry produces a multi-billion dollar trade surplus. No wonder aerospace executives are happy that the Export-Import Bank is re-authorized and has the backing of the Trump administration. David Melcher, president and CEO of the Aerospace Industries Association, shames more on Federal Drive with Tom Temin.
Capitol Hill turns to an array of outside groups for advice. The deadline for comments to the Armed Services committees was last Thursday. One set of recommendations comes from the Aerospace Industries Association. Betsy Schmid is VP of National Security and Acquisition Policy for the AIA. She’s also former staff director of Senate Appropriations Subcommittee on Defense. MJ Mitchell is AIA’s managing assistant VP for National Security and Acquisition Policy, and former chief financial officer of the F-35 program. The two explained AIA’s approach to acquisition reform on In Depth with guest host Jared Serbu.
With the announcement from Defense Secretary Chuck Hagel recalling most Defense Department civilians from furloughs, some large defense companies, which had been planning to furlough their employees, have canceled or scaled back their initial plans. However, DoD’s move could wind up having only a limited impact on contractors more broadly.
As sequestration draws nearer, contractor groups have pointed to alarming studies that show the 9 percent in across-the-board Defense cuts would throw at least 1 million people out of work and potentially cripple the defense and aerospace industries. But in a new report, the Center for International Policy, a nonprofit group which advocates reducing military spending, presented evidence that far fewer defense-sector jobs would be lost than industry has claimed and that defense companies would likely be able to absorb the defense cuts.
In an analysis prepared for the American Federation of Government Employees, contracting expert Charles Tiefer said that agency managers have a number of tools at their disposal to legally scale back service-contract spending and that doing so would be preferable to federal furloughs.
On the In Depth show blog, you can listen to the interviews, find more information about the guests on the show each day and links to additional resources.
Defense contractors are growing increasingly worried about the automatic, across-the-board budget cuts, known as sequestration, which are set to take effect in January. Marion Blakey, the president and CEO of the Aerospace Industries Association, said the cuts would hit the defense industry particularly hard.
Marion Blakey, the president and CEO of the Aerospace Industries Association a former FAA administrator, joined the Federal Drive with Tom Temin and Amy Morris to discuss what aerospace contractors should keep their eyes open for.
What happens when the Defense Department makes decisions that the defense industry can’t support? That’s the topic of a new study from the Aerospace Industries Association. Fred Downey is the Vice President of National Security…