Defense contractors wouldn’t feel the full effect of automatic budget cuts for three or four years as weapons programs are facing only a 3.5 percent reduction next year, according to an independent research group.
While most defense programs would be reduced by 10.3 percent under the cuts, known as sequestration, they would take time to implement, budget analyst Todd Harrison said in a report released today by the Center for Strategic and Budgetary Assessments.
“It will be three or four years before defense companies feel the full impact of sequestration,” Harrison said. “This gives industry more time to adjust employment levels through natural attrition and early retirements, rather than forcing immediate layoffs.”
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