The Uncertainty is Wreaking Havoc

Dawne S. Hickton is also a member of the Executive Committee of the Aerospace Industries Association, located in Arlington, VA, and is an officer of the International Titanium Association.

The House and Senate are back in full session and you would assume that they would begin to address the significant debt and economic issues this country faces. Unfortunately, if the headlines of the past year tell the story, there is no confidence that they will. It is likely Congress will pick up where it left off, mired in gridlock and putting off decisions on the budget until the last possible moment. There are even some members warning they willnot pass a budget at all this year. From one CEO’s perspective, this will only continue to erode business confidence, resulting in more business leaders’ uncertainty in making strategic and tactical decisions.

The inaction of our Congress to make decisions about the national debt and economy should worry every American who cares about our national and economic security. In the short term, according to a recent analysis by Stephen Fuller of George Mason University, potentially a million jobs are at stake across the country. Longer term, the uncertainty over federal spending is putting at risk our nation’s industrial base and our ability to innovate, especially in the aerospace and defense sectors of the economy.

The stakes could not be higher. Our company, RTI International Metals Inc. a manufacturer of advanced titanium for the aerospace, defense, energy, and medical markets, has been a supplier to the defense industry for more than 60 years. Indeed, we supplied the material used to build the SR-71 Blackbird – which today is on display in all its glory at the Stephen Udvar-Hazy Air and Space Science Center located next to Dulles Airport in Washington, D.C.

The technology developed in our industry has led to more and more sophisticated uses of titanium. This includes world-class medical devices for non-invasive but life saving medical surgeries and implants to titanium stress joints on off-shore drilling platforms in the energy sector. RTI is also a supplier of titanium for the new Joint Strike Fighter. However, if Congress imposes a trillion dollars in new defense cuts, the Department of Defense says that program will likely end, along with dozens of others – from satellites to unmanned air vehicles, tankers, and bombers.

Experts say mandated spending cuts in the wake of the Super Committee collapse would push unemployment across the nation above 10%. Closer to home, this could include more than 35,000 jobs in Pennsylvania, where RTI is headquartered, and more than 18,000 jobs in Ohio, where RTI has three manufacturing titanium plants.

For our company, the immediate impact of the actions and inactions on spending is the uncertainty that the constant tug of war is creating. At best, the inability to compromise in Washington is delaying hiring. At worst, it is costing jobs. For example, RTI has a new plant in Virginia waiting to staff up, but until our company knows what is coming next from Washington, we cannot fill approximately 150 new jobs we want to create. Right now, there are approximately 20 employees working in the plant.

It is long past time for our Congressional leaders to stop blaming the other side and to take action. Avoiding decisions during an election year is not a good strategy. For those of us running businesses, we cannot wait until the next election to make the decisions that will impact not only our customers, but also the lives of thousands of our employees, and the shareholders that invest in our companies.

To preserve jobs, protect our industrial base, secure its contribution to national security, and give the private sector the clarity to plan for the growth and innovation that will provide all Americans with continued opportunity, we need our elected officials in Washington to take a stand and deliver the balanced approach to our budget problems it has promised.

Dawne S. Hickton // Vice Chair, President, CEO // RTI International Metals Inc.

RTI International Metals Inc.
Pittsburgh, PA
rtiintl.com