[Skip to Content]
  • N O T I C E
    On July 9, 2015, the Army announced its Force Structure and Stationing Decisions. This decision will affect up to 40,000 uniformed service members, nearly 17,000 Army civilian employees, their families, and the states and communities that support them. If an Army installation is selected for force realignment or reduction, impacted areas may qualify for assistance from OEA. For more information, please contact David Kennedy, OEA Project Manager, at 703-697-2136 or david.r.kennedy.civ@mail.mil

Arizona's Defense Industry Bracing for Big Cutbacks

KTAR Arizona - June 21, 2012, By Jim Cross

PHOENIX -- Up to $500 billion in automatic defense cuts could take effect in January if congressional leaders can't reach a deficit reduction deal, according to Reuters.

Lee McPheters with Arizona State University's W.P. School of Business said Arizona's defense industry, which includes contractors Boeing, General Dynamics, Lockheed and Raytheon, could see cuts of about $2 billion, at a time when the states economy is beginning to refire.

McPheters said that could cost the state 10,000 direct defense jobs but that number will likely double with the trickle down.

"Those jobs support everything in the community," he said. "Everything from grocery stores, doctors, real estate and so forth. So you get a double whammy."

Arizona Republican Congressman Jeff Flake said spending cuts will leave no area of government untouched.

"I hope the Senate does what the House did where we say we need to hit the targets but we should take it from mandatory spending, not defense," he said. "I know that's the direction that senators McCain and Kyl want to go."

McPheters said cuts would be a step back for the state's recovery.

"We're actually seeing manufacturing improve in the state and of course so many of these defense contracts involve high-tech manufacturing," he said.

 

To view this article at the source publication, go to http://ktar.com/22/1554633/Arizonas-defense-industry-bracing-for-big-cutbacks.

The information above is for general awareness only and does not necessarily reflect the views of the Office of Economic Adjustment or the Department of Defense as a whole.

In the News