NAVY SHIPBUILDER: We're still suffering the consequences of the budget battle of 2013
The CEO of a shipbuilding company that supplies the US Navy, however, is still angry over the last time Congress failed.
Mike Petters, CEO of Huntington Ingalls, said that his company is being forced to constantly layoff and rehire employees due to the delays in funding caused by the shutdown in 2013.
"Truthfully some of that was caused by the budget battle back about three years ago when the arrival of the overhaul was delayed due to a Congressional dispute," said Petters in the company's quarterly earnings call Thursday "But because we are going to be working through that over the next year-and-a-half, we are going to have another round of [layoffs] next year that we are going to have to recognize."
Petters also said that the company will have to continue to fire for a few years, but also hire them back. This is not only bad for the workers, but also the business. Here's Petters (emphasis ours):
Petters said while the shutdown was brief may have lasted a short time, its impact is still being felt.
"When we are in a sequestered environment that's a very short term, very narrow focus and it can have some long-term affects," he said.
This time around, Congress was able to reach a compromise on the budget and is on tack to set the appropriations for defense spending. This comparatively smooth process has Petters is a bit more hopeful.
"I would say the fact that they have got to a compromise and the fact that they are moving towards a regular order process to get through revise the authorization bill and get these appropriations bills done," said Petters. "We are optimistic that that's going to happen. We believe that the more the legislative process can be in a regular order process, the better chance we have to make the case for the long-term investments that need to be made to support our programs."
For Petters, it's unfortunate that he has to jerk his employees around because of Congress, and he's hoping it doesn't happen again.