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 employee furloughs.
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 Troy, Alabama.
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.
United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the building and aerospace industries.