Aerospace Execs tell Congress that 'Sequestration' Will Cost Jobs
July 18, 2012
Aerospace industry executives told the House Armed Services Committee that the government hasn't given them proper insight in how to prepare for proposed budget cuts threatening to hit Pentagon spending.
Under a law approved last year, $500 billion in federal funds of all kinds would be held back — "sequestered" — until Congress reaches an agreement on reducing the mounting federal deficit.
Although there is much speculation about whether Congress would let those automatic cuts actually occur in January, military contractors are ringing alarms now.
Robert J. Stevens, chief executive of Lockheed Martin Corp., the world's largest defense firm, told the committee Wednesday that his company is trying to prepare for the automatic cuts.