Ohio Aerospace Companies Uneasy About Federal Budget Cuts

The $109 billion in cuts, which would go into effect in January, involve an across-the-board $54.5 billion reduction of Pentagon spending in 2013 and could have almost immediate effects on Ohio companies.


The cuts are part of the Budget Control Act of 2011, which outlines plans to reduce the federal deficit by $917 billion in the next 10 years.

Aerospace officials say the country — and Ohio — can't afford the cuts.

During a roundtable discussion Thursday held by the Ohio Aerospace Institute, industry leaders called the cuts “draconian” and “devastating.”

Dale Carlson, general manager of technology strategy at GE Aviation, said the cuts would weaken the commercial competitiveness of the United States against countries such as China that are trying to foster aerospace innovation.

“If we're going to compete, we have to out-innovate the rest of the world,” Mr. Carlson says. But if defense spending is cut, defense contractors will need to lay off workers, which would hurt their ability to pursue innovations.

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