Defense Industry Downers

Recent headlines that could trouble Huntsville and Alabama’s other military-dependent cities include:

The military began an immediate hiring freeze for civilian workers and said temporary civilian employees will be dismissed, because Congress hasn’t passed a budget.

As the Army’s new Ground Combat Vehicle moved from design to development, the Army announced that only one of the two teams now working on the project will be retained. BAE Systems, with offices in Huntsville, is a key member of one of the two teams.

Army Aviation and Missile Command and Program Executive Office Aviation officials, speaking at a Huntsville conference, warned suppliers that budget cuts and sequestration could easily affect their businesses.

For the second year in a row, the Air Force has cancelled its annual information technology conference in Montgomery because of budget constraints. The move left Montgomery convention officials scrambling for a replacement.

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Contracts for new littoral combat ships — shared by Lockheed Martin and Austal USA — could fall victim to defense budget cuts, industry leaders say, according to reports in the Washington Business Journal.

Nedra Bloom

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