Inside Tucson Business
Arizona’s defense industry could take a hit of between a $1.1 billion and $2.1 billion, depending on the budget for the U.S. Department of Defense is reduced, according to the Center for Security Policy in Washington, D.C.
Overall, the amount represents cuts from 9 to 18 percent from this year’s budget. The higher amount would be the result of automatic spending cuts that are set to take place if Congress and the White House fail to agree on a plan to reduce the deficit.
Arizona defense contractors take in $11.8 billion in government contracts, ranking the state ninth. The state’s largest defense industry, according to the center, is guided missile and space vehicle manufacturing, which accounts for nearly $3.9 billion in contracts. Although company breakdowns weren’t provided, Tucson-based Raytheon Missile Systems is one of the companies that received contracts.