Budget ramifications run deep

Budget ramifications run deep

The failure of the “Super Comittee” to agree on budget cuts and revenue enhancements to deal with our overwhelming federal deficit and crushing national debt should worry every American who cares about our national and economic security. In the short term, according to a recent analysis by Stephen Fuller of George Mason University, potentially a million jobs are at stake across the country. Longer term, the uncertainty over federal spending is putting at risk our nation’s industrial base and our ability to innovate, especially in the aerospace and defense sectors of the economy.

The stakes couldn’t be higher. Our company, RTI International Metals, Inc., a manufacturer of advanced titanium for the aerospace, defense, energy, and medical markets, is also a supplier of titanium for the new Joint Strike Fighter. But if Congress imposes a trillion dollars in new defense cuts, the Department of Defense says that program will likely end, along with dozens of others — from satellites to drones to tankers to bombers.

Experts say mandated spending cuts in the wake of the “Super Committee” collapse would push unemployment across the nation above 10 percent and cost more than a million jobs. Closer to home, this could include more than 35,000 jobs in Pennsylvania, where RTI is headquartered, and more than 18,000 jobs in Ohio, where RTI has three manufacturing plants that produce advanced titanium for defense, aerospace, energy and medical markets.

For our company, the immediate impact of the actions and inactions on spending is the uncertainty that the constant tug of war is creating. At best, the inability to compromise in Washington is delaying hiring. At worst, it is costing jobs. For example, RTI has a new plant in Virginia waiting to staff up, but until our company knows what’s coming next from Washington, we cannot fill approximately 150 new jobs we want to create there.

It is long past time for our congressional leaders to stop blaming the “other side” and to take action. Kicking the deficit reduction can down the street into the election year ahead is a dangerous strategy. For those of us running businesses, we can’t wait until the next election to make the business decisions that will impact not only our customers, but the lives of thousands of our employees, and the shareholders that invest in our companies.

To preserve jobs, protect our industrial base, secure its contribution to national security, and give the private sector the clarity to plan for the growth and innovation that will provide all Americans with continued opportunity, we need our elected officials in Washington to take a stand and deliver the balanced approach to our budget problems they have promised.

Dawne S. Hickton, Pittsburgh

The writer is Vice Chair, President and Chief Executive Officer of RTI International Metals, Inc., headquartered in Pittsburgh, Pa. She is also a member of the Executive Committee of the Aerospace Industries Association, located in Arlington, Virginia.