Dan DePompei, co-chairman of the Submarine Industrial Base Council, compared the delay's impact at EB and Newport News to an earthquake.
"But it's the tsunami that affects the rest of us," he
said, referring to the more than 5,000 suppliers that provide parts and services for the Virginia-class program.
"When you get down to the smaller businesses, some of which are really small businesses, it's very difficult to rebound."
For some, a large share of their profits depends on that work, he
EB would have placed purchase orders worth at least $150 million next year for parts for the submarine with long lead times.
understands that other defense manufacturers are facing the same hardships as submarine suppliers but the SIBC
wants the Pentagon to make the "right cuts" to lower the budget.
The council's goal is to educate policymakers and the public about the nation's ability to design, build and maintain submarines.
program is recognized and documented as the most successful government program in decades," he
said, referring to the leaders in the Defense Department who have praised the program as a model for efficient acquisition.
As the submarine suppliers lose revenue they had projected on the basis of the Navy's original plan to buy two submarines in 2014, they may, in turn, raise the price of the submarine parts and services they are selling and reduce labor costs by laying off personnel, DePompei
"The significance of that is these cutbacks would be felt in all 50 states because the suppliers are in all 50 states," he