The U.S. Defense Industry Is Alreay Feeling The Impact Of The 'Fiscal Cliff'
How 'Fiscal Cliff' Is Already Hitting Defense Industry -- Christian Science Monitor
Although lawmakers have been moderating dire predictions, some small businesses are talking about layoffs if no deal on the fiscal cliff is reached. And some have already lost contracts.
Rodney Hudson’s 13-person business, QuickSilver Analytics, builds sampling kits for weapons of mass destruction, used by Air Force bases, the Coast Guard, and Special Operations Forces.
Even though the test kits are widely popular and his Abingdon, Md., company’s sales average $2 million to $3 million annually, Mr. Hudson is predicting a 15 percent slowdown in orders next year.
That’s due almost entirely, he says, to the threat of looming cuts known as sequestration, which would contract the US defense budget by $500 billion over the next decade if Congress doesn’t come to a “fiscal cliff” deal.
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My Comment: And what is distressing about this fiscal/debt crisis is that the fiscal cliff is only addressing a small part of the U.S. budget deficit. In short .... trillion dollar deficits are not sustainable .... and in this White House if given the choice of cutting entitlements or the Pentagon's budget, it is the Pentagon's budget that is going to be slashed. As for a business owner whose client is the Pentagon .... now is probably the time to get into something else.
