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Home » Up, Up and Away

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Commentary/ColumnsEditorial

Up, Up and Away

November 6, 2012
Reed Miller
KEYWORDS aerospace
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You are holding our annual focus on aerospace materials and processes. The aerospace industry, particularly defense, will likely find itself in the middle of upcoming budget battles. The future of the aerospace industry is tenuous.

    According to the Budget Control Act of 2011 (BCA), if Congress doesn’t act to reduce the deficit, $110 billion in across-the-board cuts will take effect on Jan. 2 (sequestration). The Department of Defense is responsible for $54 billion of this total. Aerospace Industries Association (AIA) President Marion Blakely has asked why the Pentagon – responsible for just 20% of the federal budget – is shouldering 50% of the spending cuts. She believes the BCA will spark an “unemployment Armageddon” in almost every sector of the economy, with jobs being eliminated at a rate of 175,000 a month through 2013 and domestic product being reduced by $215 billion. In case Ms. Blakely is reading this editorial, the reason 50% is being paid by the 20% is that domestic entitlement programs like Social Security are exempted from the cuts.

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