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grassman 
Group: Members
Posts: 3858
Joined: Mar. 2006
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Posted on: Mar. 01 2013,10:12 am |
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NEW YORK (CNNMoney)
As Washington braces for automatic spending cuts, small businesses in the military town of Colorado Springs say they have been losing government business for months.
The general uncertainty facing federal agencies has trickled down to the companies that rely on federal contracts.
"Small businesses are telling us that their government contracts are either frozen, not being renewed or canceled in anticipation of budget cuts," said Kelly Manning, state director of the Colorado Small Business Development Center network.
Colorado Springs is dominated by military installations. These include Fort Carson -- the third-largest army base in the country -- Peterson Air Force Base and the United States Air Force Academy.
About half of the area's nearly 20,000 small businesses are subcontractors, contractors or vendors that work on military and other federal and state contracts.
Shelley Pearson's company, American Wiping Rags, is one of them. Her small business makes disposable cotton rags. Peterson has been her customer for the last six years.
"They use our rags in airplanes and hangars," she said. Business to Peterson and other government orders account for about 20% of her business.
She typically supplies 400 pounds of rags, two or three times a year, to the Air Force base.
But she hasn't got a new order from Peterson in more than five months. "I spoke with their purchasing agent a month ago about an order. I usually get the order in three weeks after a call," she said.
Pearson, whose company has three employees and makes about $90,000 a year in sales, said she can't wait much longer before her business starts hurting. So she's thinking about looking for new private sector customers.
Another area small business, Navsys Corporation, is also on pins and needles. The firm makes GPS systems and other navigation and communication systems for military and commercial use.
About 60% of Navsys' business comes from Department of Defense contracts, said Alison Brown, founder and CEO of Navsys. The company logs $3 million in annual sales and has 25 employees.
"We normally get a few small government contracts every year. These contracts are our bread and butter. Since last year, we're just not being awarded contracts," said Brown.
By May, Navsys should finish work on any ongoing contracts. "After that it will really hurt us if we don't get new government work," she said.
Like Pearson, Brown is trying to mitigate the risk by diversifying the business to commercial clients.
Andrew Merritt, chief defense industry officer with the Colorado Springs Regional Business Alliance, said businesses are adjusting in other ways, too. "In some cases, they've had to let people go, he said.
But lack of new contracts isn't the only threat facing local businesses, he said. Civilian workers who get furloughed because of budget cuts will have less money to spend.
"Furloughed individuals will see a pay cut. They may decide to delay buying a car, a house. They might not go to the movies or restaurants as much. This will also hurt our businesses," he said.
Anyone who relys on one particular customer, is not a good business owner. If you put all of your eggs in one basket, it may get lost. I think we are being fed a whole bunch of hyperbole.
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git er done!
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| Post Number: 2
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Grinning_Dragon
rideo draconigena
Group: Members
Posts: 3095
Joined: Aug. 2003
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Posted on: Mar. 01 2013,10:33 am |
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NO they are not drastic.
It is the equivalent of cutting $85 out of $4000.
The cuts need to go way deeper, more around the 90% mark.
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*SIC SEMPER TYRANNIS / MOLON LABE / Se Defendendo
memoria of cado frater ,Semper fidelis
*The object of war is NOT to DIE for YOUR Country, but to make the OTHER BASTARD DIE for HIS...Patton
My Constitutional Rights trump your dead.
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| Post Number: 3
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Botto 82
Group: Members
Posts: 6293
Joined: Jan. 2005
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Posted on: Mar. 01 2013,12:01 pm |
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We're still paying down the cost of destroying the U.S.S.R. And Iraq. And Afghanistan. And coming soon: Iran (again).
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Dear future generations: Please accept our apologies. We were rolling drunk on petroleum.
- Kurt Vonnegut
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| Post Number: 4
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irisheyes
Group: Super Administrators
Posts: 3040
Joined: Oct. 2003
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Posted on: Mar. 01 2013,2:14 pm |
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So many of the politicians who always talk about the need for cuts are the same ones saying how horrible these cuts would be. And nearly all repub, teaparty, or so-called libertarians keep saying any defense cut will hurt our economy and safety. Even though that's by far the largest part of the discretionary budget. You won't make a dent in the deficit without cutting there
They sure have been spinning ever since they took the gavel. Before Nancy Pelosi and Harry Reid were to blame, now that Boehner is the Speaker and Paul Ryan is the budget committee chair it's all Obama's fault. 
No way Congress wants their Constitutional responsibility anymore, now they want to force Obama to take the hot potatoe they set up in sequestration. I can't blame them. Anyone who makes the cuts will get blamed for them, but if they don't make the cuts they'll get blamed for being a big spender. It's much easier politically to keep tossing around the hot potato and blaming each other.
One thing is for sure, we certainly can't raise taxes to cover the bills Congress and the Pres authorizes. 
QUOTE We're still paying down the cost of destroying the U.S.S.R. And Iraq. And Afghanistan. And coming soon: Iran (again).
And anytime a politician suggests paying off those debts, the other side will change the subject and complain about NPR, Planned Parenthood, and Amtrak.
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You know it's going to be a bad day when you cross thread the cap on the toothpaste.
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| Post Number: 5
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grassman
Group: Members
Posts: 3858
Joined: Mar. 2006
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Posted on: Mar. 01 2013,2:20 pm |
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Ah yes, Amtrak. I would recommend for everyone to try it at least once. What a nice ride. Portand is a good one.
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git er done!
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| Post Number: 6
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Self-Banished
Group: Members
Posts: 22699
Joined: Feb. 2006
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Posted on: Mar. 01 2013,4:27 pm |
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Amtrak,
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 Remember boys and girls,
Don’t be a Dick …
Or a “Wayne” 
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| Post Number: 9
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Rosalind_Swenson
Group: Members
Posts: 1527
Joined: May 2011
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Posted on: Mar. 01 2013,4:46 pm |
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WASHINGTON (AP) — The Homeland Security Department released from its jails more than 2,000 illegal immigrants facing deportation in recent weeks due to looming budget cuts and planned to release 3,000 more during March, The Associated Press has learned.
The newly disclosed figures, cited in internal budget documents reviewed by the AP, are significantly higher than the "few hundred" illegal immigrants the Obama administration acknowledged this week had been released under the budget-savings process.
The government documents show that Immigrations and Customs Enforcement released roughly 1,000 illegal immigrants from its jails around the U.S. each week since at least Feb. 15. The agency's field offices have reported more than 2,000 immigrants released before intense criticism this week led to a temporary shutdown of the plan, according to the documents.
http://bigstory.ap.org/article...igrants
I know how to save the country money. Let's deport the politicians.
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And the light shines in the darkness, and the darkness did not comprehend it.
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| Post Number: 10
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grassman
Group: Members
Posts: 3858
Joined: Mar. 2006
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Posted on: Mar. 01 2013,5:31 pm |
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I think it is job security for HLS, now they will need more agents to round those illegal rascals back up. Is it me or does it not seem like we have a totally disfunctional GOVERNMENT. They react like a bunch of pre-schoolers. These clowns have lost all sight of who they are to answer to.
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git er done!
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