Space Florida CEO: Sequestration Will Hurt Florida
Tuesday, July 31, 2012
By: Matthew Peddie

Politicians on both sides of the aisle are warning about the threat of automatic budget cuts which could have a profound impact on the local defense industry. Industry insiders say the cuts would hit the Central Florida area hard.

Unless Congress can agree on a budget reduction plan, sweeping cuts will be enacted on January 1st, including a half trillion dollars cut from defense spending.

Space Florida President and CEO Frank DiBello says it’s an anxious time for the Space Coast, where  defense and aerospace companies are a vital part of the local economy.

“Well there’s no question that sequestration if it goes through will have an impact not just for the space coast but for the State and for all the States," he says.

"I frankly think congress will probably convene to kick the can down the road.” 

DiBello says federal lawmakers need to act soon to avoid sequestration cuts, because many companies will have to warn their employees 60 days before any major layoffs.

“I think there will be some hint of action to be taken before the November election," he says.
 
A group of Republican lawmakers including Senator John McCain paid a visit to Tampa this week to talk about the impending defense cuts. Democratic senator Bill Nelson also says he wants to work to avoid sequestration cuts.

Defense and aerospace contractors with a presence in Central Florida include Lockheed Martin, Harris Corporation, and AAR Corp.