AirTalk for March 1, 2013

Sequester’s impact on local defense contractors

Military Airship

Jae C. Hong/AP

Aerospace engineer Munir Jojo works in the cockpit of the Aeroscraft airship, a high-tech prototype airship, in a World War II-era hangar in Tustin, Calif., Thursday, Jan. 24, 2013. How could sequestration cuts change the aerospace industry?

With no resolution in sight, states are bracing for across the board funding cuts. While it will take months for cuts to be fully implemented, many programs are already anticipating the fallout of sequestration. Immigration detainees have been released to save money, according to the Department of Homeland Security, and military programs have begun discussions of furloughs.

Defense cuts could have a big impact in California, where an expected $3.2 billion in defense cuts alone will directly effect the aerospace technology industry. Smaller companies will likely feel the effects of sequestration cuts most acutely, though larger businesses such as Northrop Grumman and Boeing are also sure to suffer. The Aerospace Industries Association estimates that as many as one million aerospace-related jobs could be lost as a result of sequestration, including 126,000 in California.

How could cuts to aerospace technology affect research and development or military technology? Should sequestration cuts be more calculated, or are indiscriminate cuts the only fair solution?

Guests:
Greg Bloom , President, Seal Science Inc., an engineering and manufacturing firm for the aerospace industry, based in Irvine, CA

Kevin Klowden, managing economist at the Milken Institute, where he serves as director of the California Center

Mattie Duppler , Director of Budget & Regulatory Policy, Americans for Tax Reform


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