New Survey on Sequestration’s Impact

Posted by Kathleen Smith

The Government Technology and Services Coalition (GTSC) released a new annual survey on the impact of sequestration on homeland and national security. GTSC surveyed over 220 respondents about actual and planned impacts to the contracting community engaged in mission-critical activities and found:

* Nearly seventy-five percent of respondents are preparing for sequestration

* Companies are preparing by reducing their marketing budgets (29.8%), laying off staff (26.7%), reducing public relations budgets (22.7%), cutting services (19.6%), leaving the Federal market (18.7%) and bringing services in-house (15.6%)

* “Other” preparations include reducing salary and benefits, raising prices, decreasing recruiting and moving into commercial markets

* Respondents believe the long-term effects include: weakening of national security and preparedness, uncertainty about the federal market, loss of skills and experience in vital missions and increased efficiency

* Respondents believe the short-term effects include: uncertainty, distraction from the mission, loss of jobs and decreased morale

According to GTSC’s CEO Kristina Tanasichuk, “This survey shows that the risk of sequestration and budget cuts is two-fold: you have a number of companies that may not survive and you have numerous mission-critical agencies that are at risk as well. Now more than ever we need the government and industry working together to assure mission success to find convergence points where we can make strategic cuts and still protect the nation.”

Read the full report here.

This entry was posted on Monday, July 01, 2013 2:10 pm

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