Today’s Wall Street Journal detailed the comments of Lockheed Martin’ new CEO, Christopher Kubasik, on the upcoming defense budget cuts.
The automatic $500 billion in cuts, known as sequestration, are looming after the “Super Committee” failed to reach a budget deal last fall. According to the article:
“U.S. contractors have struggled to define the future size and shape of their businesses due to uncertainty over whether failure to reach a broader agreement on the federal budget will automatically trigger an additional $500 billion reduction in Pentagon spending under the so-called sequestration process.
“Sequestration will absolutely devastate the industry,” said Mr. Kubasik, echoing comments by other contractors. While the impact so far has been limited, companies are starting contingency planning.”
The NAM has formed a Defense Working Group on this critical issue to closely studying the impact of the cuts. It’s clear that the defense cuts would have a negative ripple effect up and down the supply chain, among manufacturers of all sizes, eliminate jobs across the U.S., and harm institutional advantage that the U.S. enjoys in research and development.