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North Carolina defense industry hit especially hard by coming budget cuts

Many in defense industry there say that March 1 deadline irrelevant - 'It's already here'


North Carolina, the home to seven major military installations and thousands of servicemen and women, is preparing for the worst this coming March 1. That's the deadline for Congress to strike a deal in order to avoid #1.2 trillion in automatic spending cuts. Much of that is expected to include drastic cuts for the U.S. military. Many companies have already begun to lay off workers and cancel contracts, prompting some here to say the hatchet to fall "is already here."

Defense spending cuts were originally set in motion as a product of the 2011 debt-ceiling deal. Lawmakers expected to spread the cuts around, but have been unable to. Lawmakers elected to merely push off the cuts for two months.

Defense spending cuts were originally set in motion as a product of the 2011 debt-ceiling deal. Lawmakers expected to spread the cuts around, but have been unable to. Lawmakers elected to merely push off the cuts for two months.

LOS ANGELES, CA (Catholic Online) - The North Carolina Defense Business Association (NCDBA), expects the cuts to be devastating. The association projects more than 34,000 jobs cut and more than $1 billion in state gross losses.

Defense spending cuts were originally set in motion as a product of the 2011 debt-ceiling deal. Lawmakers expected to spread the cuts around, but have been unable to. Lawmakers elected to merely push off the cuts for two months.

This was of little help to those in the local defense industry. NCDBA Executive Director Joy Thrash said avoiding the fiscal crisis on Jan. 1 and pushing the deadline further into this year has only confused her members even more.

"They were hoping at the beginning of the year that they could start fresh. But now it's two more months and they are wondering how are they going to survive," Thrash says, who is already hearing of layoffs and cutbacks across the state. "So, for the idea that this is going to happen in February or March, that's a false idea. It's already happening."

While private businesses are used to ups and downs in the economy, Chief Operating Officer Jim Lynch with K2 Solutions says that the automatic spending cuts coming in March in Washington are something completely different.

"What we don't understand is when cuts are arbitrary, as they are with sequestration," Lynch says. "We don't know what's going to be cut. Nobody knows. There is no plan. What successful business today has been successful without a plan?"

K2 Solutions is a company that provides special operations support, canine training and logistics to the Department of Defense. The firm has already invested money and resources in anticipation of future projects. The looming budget cuts have now left thee plans in limbo.

Getting federal lawmakers to understand that uncertainty and delays are bad for business is the chief concern for Thrash. She has been lobbying most of North Carolina's congressional delegation to get something done before the fear of the unknown kills any more business.

"I share the frustration of our North Carolina business owners whose contracts with the Department of Defense have been held up or delayed because of uncertainty over sequestration," Sen. Kay Hagan, D-N.C., who sits on the Senate Armed Services Committee, in a written statement to Fox News said. "Indiscriminate cuts are not the way to reduce our deficit, and kicking the can down the road is not the way to provide certainty for our small business owners who want to do business and grow their companies."

© 2013, Distributed by NEWS CONSORTIUM.

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Pope Benedict XVI's Prayer Intentions for January 2013
General Intention:
The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.

Keywords: Military spedning, budget cuts, fiscal cliff, North Carolina, layoffs

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1 - 3 of 3 Comments

  1. Rob
    3 months ago

    Funny that we want to cut the government....just not the govenment that employs us.

    I wish our politicians and those who are so quick to want to cut, cut, cut, would think about the people that can be harmed by this.

  2. Becca
    3 months ago

    As bad as the cuts will be for the economy in NC, they aren't even in the top 10 in regards to job losses. Virginia is the #1 affected state. People assume that is because of the Pentagon, but Hampton Roads is widely considered the East Coast home of the military and the Commonwealth is home to 27 military bases. I'm a life-long resident of Va Beach and the defense department accounts for half of our economic activity.

  3. SubjectVerb
    3 months ago

    Can you guys please cover the devastating effects this will have in the DC Metro area as well?

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