Cuts in the defense budget could cost Boeing as much as $5.3 billion, according to an article in the St. Louis Post-Dispatch.
Defense cuts are scheduled to happen automatically at the beginning of next year if Congress isn’t able to work out a new deal to curb the federal deficit.
Boeing is in a “good position” if the cuts don’t happen, said Michael Blades in an interview with the Post-Dispatch, a defense and aerospace analyst with Frost and Sullivan in San Antonio. If the cuts happen, “then everybody is screwed.”
In an analysis prepared for the Aerospace Industries Association, George Mason University economists Stephen Fuller estimated defense cuts will drain $215 billion from the Gross Domestic Product, put 2.14 million Americans out of work and raise unemployment by 1.5 percent.
Risk management firm, Deloitte, predicted Missouri could lose 31,200 jobs.