If the U.S. Government shutdown
continues, United Technologies Corp. (NYSE: UTX) aerospace businesses will be
forced to furlough thousands of workers due to the absence of Defense Contract
Management Agency (DCMA) inspectors who audit and approve operations
throughout the manufacturing process for military products. Without the
required DCMA inspectors, who were deemed non-essential federal employees,
certain defense manufacturing work must be halted, which will result in
United Technologies' Sikorsky Aircraft, which produces the BLACK HAWK
helicopter, will be impacted immediately, with nearly 2,000 Sikorsky workers
expected to be placed on furlough Monday, Oct. 7. This includes employees at
Sikorsky facilities in Stratford, Connecticut; West Palm Beach, Florida; and
If the shutdown continues through next week, UTC's Pratt & Whitney and UTC
Aerospace Systems units would also be affected, and company-wide furloughs are
expected to double to include 4,000 workers. This number could exceed 5,000
employees if the government shutdown continues into next month.
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