Wednesday, January 2, 2013
San Diego's defense industry dodged a big hit thanks to the deal to avoid the fiscal cliff, but the threat of major military spending cutbacks is still out there.
San Diego's defense industry dodged a big hit, thanks to the deal to avoid the fiscal cliff.
The deal to swerve away from the fiscal cliff only creates a two month reprieve as federal lawmakers try to develop targeted spending cuts.
San Diego's defense industry and defense contractors will have to deal with an uncertain future when it comes to federal funding.
"The uncertainty is a huge problem to them," said Mark Cafferty, the president of the San Diego Regional Economic Development Corporation.
"Because not knowing what these cuts could look like causes them to not be able to make the business decisions they would normally make, or it may cause them to make some business decisions based on assumptions," said Cafferty.
Thousands of San Diego jobs hang in the balance if deep across-the-board spending cuts end up happening.