President Obama released his 2015 budget on Tuesday, requesting $3.9 trillion in budget authority for the upcoming fiscal year. Among the budget’s priorities are diplomatic security, domestic infrastructure, research and development, cybersecurity, and education and job training, in addition to a separate request for a $56 billion “Opportunity, Growth, and Security” fund designed to boost spending in areas such as research at the National Institutes of Health.
In advance of the March 4th budget proposal, Defense Secretary Chuck Hagel previewed the Pentagon’s five-year plan, which includes $115 billion in spending over sequestration spending caps, in addition to various cuts to personnel and programs.
International sales continue to play an important role in 2014 within the aerospace and defense industry as companies look to diversify revenue and operations amidst domestic budget uncertainty.
The House and Senate passed legislation Wednesday to extend the government’s borrowing authority. Lawmakers were under extreme pressure to come up with a solution before February 27th, the date the Government would hit the current ceiling.
With the March 4th submission of the fiscal 2015 budget approaching, more information detailing plans of future spending and potential cuts continue to be determined. Among the departments soon to realize their respective fates, the Air Force is expecting to take severe cuts to personnel and platforms.
Multiple aerospace and defense earnings results for fiscal quarters ending December 31st, 2013 were released this week with general positivity across the board within both sectors. Aerospace companies reported exceptional results riding on the momentum of record numbers of year-end deliveries, new orders, and backlogs.
Bombardier’s rough beginning to 2014 continues as the company announced it would lay off approximately 1,700 employees from its aerospace division, or 4.4% of its aerospace workforce, due to continued difficulties within the tough market and ongoing delays of its CSeries line of aircraft.
On Thursday the Senate approved a $1 trillion omnibus spending bill for FY 2014, which was approved by the House of Representatives on Wednesday with broad bipartisan support. President Obama is expected to sign the legislation before the current stop-gap funding measure expires on Saturday