Proposed defense cut worry suppliers

Published: May 18, 2009 at 12:47 PM

ST. LOUIS, May 18 (UPI) -- Parts suppliers for U.S. plane maker Boeing said cuts in defense contracts would ripple through the economy, leading to possible layoffs.

"I've got 26 mouths to feed here," said Charles Gerding, president of Gerding Enterprises, which makes support equipment for fighter jets, the St. Louis, Mo., Post-Dispatch reported Monday

Gerding's company employs 26, but "that trickles down to how many people?" Gerding asked.

"Boeing is our biggest customer. What affects them affects us," said Kevin Cummings, president and chief executive officer of GKN Aerostructures North America in Hazelwood, Mo.

"It would be a profound loss," said Barry Todd, chairman and CEO of Valley Technologies Inc., referring to cuts in Boeing C-17 and F/A-18 Super Hornets purchases.

Defense Secretary Robert Gates has proposed halting C-17 purchases of the C-17 Globemaster, the workhorse cargo aircraft, at 205 and cutting back on orders for the F/A-18, a multi-use fighter jet that costs up to $57 million each.

Sen. Claire McCaskill, D-Mo., said purchasing a higher number of jets would be "a better deal for taxpayers." Others, such as Sen. Barbara Boxer, D-Calif., have advocated for the Pentagon to buy 15 more C-17s, a $218 million aircraft, the newspaper said.

"We would be here, but we would be a lot smaller company," said John Van Gels, Boeing's vice president of operations and supplier management for its defense business.

© 2009 United Press International, Inc. All Rights Reserved.
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