ST. LOUIS, Mo. (KMOX) – If automatic budget cuts are triggered in January, Missouri stands to lose 51-thousand jobs, or so says the author of a study on the Economic impact of last year’s Budget Control Act.
First, Boeing is urging the elimination of both defense and non-defense sequestration within the balanced budget plan. Remember the process called sequestration.
“The budget control act of 2011 requires fed govt to reduce spending by a certain amount over ten years if they couldn’t agree on how to do it
And they couldn’t agree, so the Jan 2013 decade of cuts became automatic.”
But study author, Dr. Stephen Fuller is director of the Center for Regional Analysis at George Mason University says little attention has been paid to non-Department of Defense spending.
In Illinois he predicts nearly 56-thousand jobs would be lose, a third of those federal employees, 20 percent fed contractors. And the remainder, the other 45 percent, are jobs lost all over the state because federal employees and federal contractors are not being paid anymore.
Two thirds of the job loss in Missouri would be tied to defense spending.
While it’s too early to tell exactly what the cuts will mean, Boeing Co. Pres and CEO Dennis Muilenburg says their planning is worst case scenario is a potential one-trillion dollar cut over the next ten years. To handle any outcome, Muilenburg says they are targeting new markets and pursuing international sales.
Dennis Muilenburg, president & CEO of Boeing Defense, Space & Security statement:
As to the deep cuts anticipated over the next ten years, in our planning we have made assumptions including the worst-case scenario and designing our cost structure to accommodate a potential $1 trillion cut.
At this point it is too early for Boeing to speculate on what deep defense budget cuts might mean for individual programs or the facilities that support them.
That said, Boeing has been anticipating declining U.S. defense budgets for several years and we have been making the changes necessary to compete and grow in this environment.
In addition to our pursuit of international sales and targeted new markets and adjacencies we have been taking significant steps to manage costs and increase productivity. This has included some facilities consolidation, workforce redeployment and several other initiatives to lower costs to make our products even more affordable for our customers.
We are not hunkering down. We will continue to execute on our core programs and aggressively pursue business in international markets and growth areas like cyber security, unmanned systems, C4ISR and other adjacent areas.
Boeing strongly urges elimination of both defense and non-defense sequestration within the context of a balanced agreement that addresses the broader fiscal issues facing the nation.