Association News

Manufacturers' Report highlights consequences of defense cuts.

Press Release Summary:

November 29, 2011 - "The Negative Impact of Defense Spending Cuts on the Manufacturing Sector," has been released by NAM Defense Manufacturing Working Group. In addition to threats to national security, report notes that defense cuts could result in elevated unemployment, reduced competitiveness, and decrease in innovation that would impact American military superiority. Report states that 30,000+ manufacturers would be affected, and effect of such cuts would largely fall on small and medium-sized firms.

National Association of Manufacturing - Washington, DC

Original Press Release

Manufacturers' Report Highlights Stark Consequences Defense Cuts Will Have on Jobs and Innovation

Press release date: November 17, 2011

Report Urges Policymakers to Consider the Impact of Cuts on Manufacturing Supply Chain, Competitiveness and Jobs Washington, D.C. - The National Association of Manufacturers (NAM) Defense Manufacturing Working Group released a report today that highlights the serious and long-term negative effects of potential cuts in defense spending on the U.S manufacturing sector. The report, "The Negative Impact of Defense Spending Cuts on the Manufacturing Sector," notes that in addition to the threat to national security, defense cuts could result in higher unemployment, reduced competitiveness and a serious decrease in innovation that will impact American military superiority. More than 30,000 manufacturers would be affected, and the brunt of these cuts would fall upon small and medium-sized firms - potentially causing the loss of over 1 million jobs. Moreover, much of the innovation that is essential to our country's economic development comes from important research and development in the defense and aerospace industries. The capabilities of defense and aerospace manufacturing in the United States cannot be taken for granted. Once they are gone, they will be extremely difficult-and perhaps impossible-to rebuild. "Our nation is in the midst of a debt crisis that undermines our economy and job creation, and manufacturers know we must make the hard decisions on spending to right our fiscal ship," said NAM President and CEO Jay Timmons. "However, those decisions should reflect prudent consideration of the world and economic environment. Massive cuts to defense could cripple both our national and economic security for decades to come. The defense and aerospace industries are pillars of our manufacturing economy and drive innovation, and we should not risk our ability to compete and create jobs at their expense nor can we afford to lose intellectual capital in the defense industry at a time of global turmoil. Manufacturers are reminding our lawmakers that draconian cuts to defense will cost real jobs and could make our nation less safe," said Timmons. The NAM's Defense Manufacturing Working Group brings together manufacturers in the defense and aerospace industries and their suppliers to highlight the critical importance of the defense sector to our nation's innovation and economy. Manufacturers are working aggressively to illustrate their roles as innovators and creators of many of the products and technologies used to protect our nation and improve the daily lives of its citizens. Manufacturers know this sector is vital to helping our country maintain its competitive edge in the world. -NAM- The National Association of Manufacturers is the largest manufacturing association in the United States, representing manufacturers in every industrial sector and in all 50 states. Manufacturing has a presence in every single congressional district providing good, high-paying jobs. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit


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