Top military contractors not hurt by sequestration

There’s been plenty of concern about the effects of sequestration on the defense industry — which is, obviously, of huge concern in Virginia, particularly in the Hampton Roads area.

Big cuts in pay for civilian employees has already translated into at least anecdotal evidence of a real estate market slowdown.

But here’s a bit of good news: Military contractors seem to be doing pretty well since the sequester took effect on March 1. Here’s how nine of the top 10 contractors’ stock prices have fared. (The 10th, BAE Systems, is based outside the US.)

  • Lockheed Martin +5%
  • Boeing +10%
  • General Dynamics (headquartered in Fairfax) +3%
  • Raytheon +5%
  • United Technologies +3.4%
  • SAIC (headquartered in Tysons Corner)  +5%
  • L-3 Communications +3%
  • Oshkosh Corp +5.7%
  • McKesson Corp +4.2%

So while military employees are being hurt, at the moment it appears that the people working for major contractors are doing OK.

Read more over at The Big Picture.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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One Response to Top military contractors not hurt by sequestration

  1. Andrew,
    I am a REALTOR and employee of a large defense contractor as well as live in a area where there are over 300 defense contractors (Hampton Roads area), and I know for a fact, that the defense contractor industry are laying off employees as a result of sequestration cuts. To directly relate their stock prices to “Military contractors seem to be doing pretty well” is not factual. You need to do more research on this topic, rather then make a statement “they seem to be doing well” while people are losing their jobs.

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