This is the high side…
And this is the LOW side…
While they may say that, most of the major defense contractors are already laying off people, at this point I ‘believe’ the totals are less than 100,000 jobs lost total across the contractors.
You can read the full article HERE.
Another point is that these are high tech/scientist/engineer/design teams type jobs, not line types…
Monday after the last shuttle landed there were 3000+ layoffs at NASA; how many more of our best and brightest scientists/engineers/etc. are we going to lose? At least one former rocket scientist is currently working in a meat market in Texas…
If you don’t maintain the base, then when you DO have a need, the odds are it will not have an industry that will support it, e.g. steel production, of which most of the structural steel we see used in the US today comes from China…
There is also another report circulating written by an analyst at Booz , Allen, Hamilton that paints as gloomy a picture, and echos the above article. It may come to the point that there are only 3 or 4 defense contractors left, and each one will have ONE area of ‘specialization’ e.g. air, surface, subs, Tanks/trucks, C4I, and no competition. If that happens, expect the administration to then start breaking these companies up under Anti-Trust laws (union or no union).
Before the question gets asked, I’ll answer why these companies can’t compete for ‘regular’ business…
It’s the overhead (specific accounting procedures/audits, security requirements, Information Assurance requirements, contract management requirements, etc.) and the people to support those ‘required’ government requirements that price most of these companies out of the ability to compete… Most of the time the average worker’s overhead rates work out to about 145% of the labor rate, whereas a defense contractor’s overhead rate is seldom under 250% and usually higher. Also most defense contractors are limited to 8% profit…
So we’re counting on this “Super Congress” to save the Military, and somewhere between 1/2 million and 1 million high tech jobs just in defense…
I really doubt it… sigh…
And yes, it’s REALLY been a Monday all day, even if it is Halloween, this is a trick or treat I’d rather not have…