The sequester cuts are now official and they have already claimed their first victim. A rather bizarre measure was taken as the White House tours have been canceled. The reason behind this unexpected measure is the staff reduction made due to the sequester cuts. This is just a small issue but other companies fear how the sequester cuts will affect their businesses.
For example further cuts on the national parks budget could mean a significant decrease in tourism. It is a known fact that national parks represent a lot of the U.S. touristic attractions.
A decrease in tourism can easily affect other businesses as well such as tourism agencies, travel agencies and local businesses. Activists are going to a great deal of trouble to raise awareness regarding the importance of national parks.
Furthermore the companies that are certain to be affected are the ones that work with the government such as constructions and IT companies. This could mean the closing of several small businesses.
This will discourage other entrepreneurs from building their own business. Financers will also be reluctant to aiding new companies.
This of course can only harm the U.S. economy. As the small businesses have no chance of fighting the austerity measures, bigger companies struggle as well. More than 10 important companies working with the government will face financial instability.
The defense department seems to deal with most of the sequester cuts. It is anticipated that over eight hundred thousands of Pentagon Employees will have to take a no pay leave of absence.
The cuts of the Aviation Federal Administration could mean the closing of over a hundred airport control towers. Other social programs will also be affected.
As the medical department also takes a relevant hit from the sequester cuts medical related institutions fear what might come their way. The National Institute of Health will certainly feel the cuts and so will the National Science Foundation.
A lot of researches will have to stop in the middle of their research and risk losing their life’s work. Therefore a lot of research and science laboratories may be closed down.
While medical domains are linked the pharmaceutical companies could very well suffer due to the medical research projects being shut down. The U.S. is currently on top of the medical world; because of the support that the medical domain has had in the past, a lot of ground breaking discoveries were made, impressive surgeries made with the latest technology saved numerous lives and various illnesses have been cured. Whether or not the budget costs will affect the place that U.S. holds in the medical world is hard to predict.
As numerous companies in various domains face financial difficulties and smaller companies may shut down because of the sequester cuts, one thing is for sure: the economic crisis is far from ending.
Adjustments and compromises have to be made in a lot of departments. These sequester cuts are not a guaranteed solutions. Other cuts may follow if the government does not find viable solutions.
1. Harris Corporation
Value of Government Contracts in 2012: $3 billion
2. DynCorp International
Value of Government Contracts in 2012: $3.3 billion
3. Computer Sciences Corp.
Value of Government Contracts in 2012: $3.6 billion
4. Booz Allen Hamilton
Value of Government Contracts in 2012: $3.8 billion
Value of government contracts: $4.1 billion
6. General Dynamics Corp.
Value of Government Contracts in 2012: $5.5 billion
7. Raytheon Co.
Value of Government Contracts in 2012: $5.7 billion
Value of Government Contracts in 2012: $5.9 billion
Value of Government Contracts in 2012: $7.5 billion
10. Northrop Grumman Corp.
Value of Government Contracts in 2012: $9.1 billion
11. Lockheed Martin Corp
Value of Government Contracts in 2012: $17.4 billion