Last week I spoke at the National Association of Manufacturers’ press conference on the effects that defense spending cuts will have on Virginia. Did you know that one in every five jobs in VA is directly tied to defense spending?

Defense spending in Virginia is approximately $ 60 billion annually and supports nearly a million jobs. Department of Defense spending accounts for about 15 percent of the Commonwealth’s gross state product and nineteen percent of Virginia’s workforce is tied to the defense industry.

It is crucial that we as a nation rein in federal spending, reduce the deficit, and stabilize and ultimately lower America’s level of debt. However, the dramatic cuts proposed in defense spending under the Budget Control Act (BCA) of 2011 will have a significant, negative impact on U.S. jobs and economic growth.

It is imperative that reductions in our national debt occur without undermining our fragile economy and harming our national security.

A new report by NAM, “Defense Spending Cuts: The Impact on Economic Growth and Jobs,” highlights the potential impact defense spending cuts will have on U.S. jobs and economic growth.

Under the budget caps and sequestration, real defense expenditures will decline progressively from 2012. The NAM’s report shows that these cuts will result in:

o 1,010,000 private sector jobs lost in 2012.

o 130,000 manufacturing jobs lost in 2012.

o GDP will be 1 percent lower by 2014

o Total job losses will increase the unemployment rate by .7 percent.

The cuts will mean major losses in particular industries, such as:

o Aerospace: 3.4 percent job loss

o Ship and Boat: 3.3 percent job loss

o Search and Navigation: 9.3 percent job loss

These numbers are all bad news for job creators in Virginia and across the United States. The defense industry supply chain is far reaching and includes manufacturers of all sizes and across numerous industries including both direct and indirect suppliers of defense equipment and supplies.

According to NAM’s report, Virginia will experience the second largest job loss as a result of these cuts. Virginia will lose 114,900 jobs; surpassed only by California, which is projected to lose 148,400 jobs. At a time of economic uncertainty, Virginia’s economy cannot withstand such a massive blow to our employment.

We need to support job creators and make policy decisions that create an environment where they can continue to hire and invest. Shortchanging our defense industry will undermine our national security, stifle innovation, and disrupt economic stability.

Read the full report “Defense Spending Cuts: The Impact on Economic Growth and Jobs.”