Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

1/18/2013 (1 year ago)

Catholic Online (www.catholic.org)

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.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

1/18/2013 (1 year ago)

Published in Business & Economics

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


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."


---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for December 2014
Christmas, hope for humanity:
That the birth of the Redeemer may bring peace and hope to all people of good will.
Parents: That parents may be true evangelizers, passing on to their children the precious gift of faith.



Comments


More Business & Economics

OPEC's bust is America's boom! Why cheap oil is a friend to America Watch

Image of Falling oil prices have caused a great deal of pain among OPEC countries, but the group won't cut production until three months after oil drops below $40 a barrel.

By Matt Waterson (NEWS CONSORTIUM)

The price of a barrel of oil continues to plunge, bringing with it an economic boon to motorists and headaches and potential layoffs to oil producers in the U.S. and around the world. LOS ANGELES, CA (Catholic Online) - Currently the price of a barrel of oil is ... continue reading


Is OPEC over and done with? Bank of America makes startling predictions Watch

Image of OPEC is

By Catholic Online (NEWS CONSORTIUM)

According to Bank of America, the OPEC oil cartel no longer exists in any meaningful sense. Furthermore, crude prices will drop to $50 a barrel over the coming months. This might mean relief at the pump - but this isn't necessarily a good thing, officials warn. ... continue reading


Sears no longer where America shops: 235 stores to close shortly Watch

Image of Analysts called the move a step in the right direction for the company, which has been tapping into its real estate in creative ways to compensate for downward-spiraling sales.

By Troy Dredge, Catholic Online

Few retailers are as American as Sears, one of its former and most popular taglines being "Where America Shops." That's no longer the case, as Wal-Mart has long seized that throne. It was a heavy heart that Sears announced that 235 under-performing stores would ... continue reading


36-year-low: Labor participation in the U.S. lowest since 1978 Watch

Image of The year 1978 was marked by the non-ironic use of disco music by Americans who blasted it on the radio to shake their groove things.

By Troy Dredge, Catholic Online

The year 1978 was marked by the non-ironic use of disco music by Americans who blasted it on the radio to shake their groove things. Another, far less nostalgic reminder of the year has been offered up by the Bureau of Labor Statistics: The labor force ... continue reading


Reflects very badly on U.S.: China is now world's largest economy Watch

Image of How did this happen? As recently as 2000, we produced nearly three times as much as the Chinese.

By Troy Dredge, Catholic Online

In the great car rental war that was between Hertz and Avis back in the 1960s, Avis took pride in the fact that they were behind Hertz with the saying: "We're Number Two - so we try harder!" It seems like the United States didn't try hard enough, as for the ... continue reading


Falling oil prices have helped the U.S. economy and revitalized the spending power of the American consumer Watch

Image of The continuing decline in the price of crude oil has brought numerous benefits to the American consumer and the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The recent plummet of oil prices have drained hundreds of billions of dollars from oil-rich exporters and oil companies but has injected a critically needed boost to the faltering economies in Europe and parts of Asia, but more directly to the American consumer, ... continue reading


Internet retail giant Amazon switches to a ROBOT workforce of thousands Watch

Image of Before anyone accuses Amazon of laying off human workers in order to facilitate automation, it must be noted that the company is opening more shipping centers and hiring 80,000 seasonal workers.

By Catholic Online (NEWS CONSORTIUM)

Internet retail giant Amazon.com Inc. is handling "Cyber Monday" - the online shopping rush that usually occurs on the Monday following the Thanksgiving weekend - all in stride. Anticipating a new influx of customers, Amazon has upgraded and expanded its ... continue reading


Is Apple about to hit $1 trillion? Not if Google has anything to say about it Watch

Image of While Apple dominates the smartphone market, some suspect that its heavy reliance on products will lead to its downfall to companies who offer more services and software.

By Catholic Online (NEWS CONSORTIUM)

Silicon Valley tech giant Apple may one day be worth more than a trillion. Just for a second think about how massive that is. LOS ANGELES, CA (Catholic Online) - The maker of mac computers, iPods, iPhones and more is already worth more than $670 billion, and has a $260 ... continue reading


Feet on the desk - more and more Americans simply don't want to work anymore Watch

Image of Pew Research says that 39 percent of 16 to 24-year-olds don't want to work, up a substantial amount from 29 percent in 2000.

By Catholic Online (NEWS CONSORTIUM)

Nearly four in 10 Americans, or 92 million, are not in the labor force. Many are unemployed for no fault of their own. Many others have simply stopped looking for work. Why? The reasons are complex. LOS ANGELES, CA (Catholic Online) - The largest group of people ... continue reading


REAL INCOME INEQUITY: 85 richest people now have as much money as poorest 3.5 billion Watch

Image of Billionaire investor Warren Buffett remarked more than three years ago that

By Catholic Online (NEWS CONSORTIUM)

The very rich and the very poor just grew further apart. According to Oxfam, the broadening chasm between wealth and poverty has grown so wide that the 85 richest billionaires on the planet, such as Carlos Slim, Bill Gates and Mark Zuckerberg now have as much ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 7:10-14
10 Yahweh spoke to Ahaz again and said:11 ... Read More

Psalm, Psalms 24:1-2, 3-4, 5-6
1 [Psalm Of David] To Yahweh belong the earth and all ... Read More

Gospel, Luke 1:26-38
26 In the sixth month the angel Gabriel was sent by ... Read More

Saint of the Day

Saint of the Day for December 20th, 2014 Image

St. Dominic of Silos
December 20: Benedictine abbot and defender of the faith. Born in Canas, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter