By: Matthew Hibbard

St. Louis Business Journal

An automatic $1.2 trillion in federal budget cuts, through sequestration, is expected to hit the defense industry the hardest, with cuts affecting companies close to home.

In Missouri, sequestration could cost defense contractors more than $1.63 billion annually, according to a report by the Washington, D.C.-based Center for Security Policy. Sequestration is mandated by the Budget Control Act of 2011 and will go into affect, unless the president and Congress reach a deficit-reduction deal by the end of the year. In Illinois, sequestration could cost contractors $1.2 billion annually, according to the report.

Last year, Missouri companies were awarded $9.06 billion in contracts, and Illinois companies landed contracts worth $6.7 billion.

Below is a list of St. Louis area companies that could be affected by sequestration (ranked by largest contracts awarded as of Oct. 23). Source: U.S. Department of Defense

  • Boeing (Aircraft, materials, parts, related systems): $15,517,012,289
  • Graybar (Maintenance, repair and operations): $958,105,658
  • DRS Sustainment Systems (Logistics for loader program, assault bridge launcher prototypes, water support systems): $215,519,782
  • Olin Corp. (Ammunition): $87,867,979
  • Belleville Shoe (Manufacture of combat boots): $48,760,000
  • Luhr Bros. (Environmental and maintenance in Louisiana; dikes along Mississippi River)40966070
  • McCarthy Building Co. Inc. (Expansion of Winn Army Community Hospital at Fort Stewart, Ga.): $37,777,783
  • KCI Construction (Design of vehicle maintenance facilities at Fort Leonard Wood, Mo.): $30,970,000
  • Lighthouse for the Blind (procurement of medical sets, kits and outfits): $24,607,166
  • Herndon Products (national stock numbers and items in support of the Industrial Product Support Vendor program): $24,210,833
  • K&S Associates (construction of Army Reserve center in St. Charles, Mo.): $16,658,000
  • Charpie Korte Joint Venture (dormitory at Cannon Air Force Base, N.M.): $12,413,207
  • Arnold Defense and Electronics LLC (provide aircraft rocket launchers): $10,000,000
  • U.S. Youth Sports (blast mitigating floor mat kits): $7,906,966
  • Propper International (shipboard, utility coveralls): $7,504,494
  • Professional Environmental Engineers (engineering at hazardous, toxic, radioactive and waste environmental sites): $6,666,666
  • World Wide Technology (network and communications equipment): part of $500,000,000 contract

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