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Friday, March 21, 2014

This is How Local Businesses Will Be Impacted by Defense Budget Cuts

Secretary of Defense Chuck Hagel's 2015 budget proposal is the first in 13 years in which none of the country's 1.4 million active-duty troops is expected to be engaged in a war.

His plans are to reduce military spending by $75 billion over the next two years, and cuts every branch of service, including the National Guard and Reserves. The Army, the largest branch, would see the biggest reduction. It now has 522,000 members, and Hagel has proposed trimming to between 440,000 and 450,000. The Army could shrink to 420,000, Hagel said, if sequestration remains in effect.

With cuts to the military, private sector jobs will be highly impacted by the reduction in force. In North Carolina where 110,000 active-duty service member are assigned to 6 bases, 340,000 private sector jobs will be affected. Whats even more astounding is that according the North Carolina Department of Commerce, the military supports 540,000 jobs that account close to $30 Billion in personal income. This makes the military job industry including the private sector the second largest industry behind agriculture. 

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