Sequestration and budget cuts are likely to be impacting those small to medium suppliers in the program chain sooner than later. The US Department of Defense (DoD) is mandated to slash a combined $500 billion in spending over a 10-year period. Some suppliers are already experiencing delays in programs and orders from large customers. LMI Aerospace, Inc., a firm based in St. Charles, MO supplies parts to Boeing and the US Air Force. A St. Louis Business Journal Morning Call Newsletter article (August 8, 2013) headlined: “LMI, sequestration leads to drop in sales with traditional partners” spelled out some of the uncomfortable “squeeze” from federal sequestration. Reporter Greta Weiderman wrote that LMI reported
• reduced sales at LMI by $500,000. due to delays in the US Air Force’s Black Hawk helicopter program
• difficulty securing work by LMI’s Engineering Services because sequestration’s is impacting on its customers–including Boeing.
Read the full article at: Sequestration Impact