http://dailycaller.com/2012/06/26/sequestration-could-boost-unemployment-altering-2012-politics/

I hope not!

That's a right wing propaganda rag!

I have no idea what politics has to do with it. If LM is thinking of laying off thousands that might affect our simulator. Politics has no place in this discussion.

It depends if the lay-offs include the Prepar3D division. They won't shut it down since they seem to have plenty of commercial customers that use it, but it may delay new releases if the team loses some people.

That's a right wing propaganda rag!

 

As opposed to the left wing propaganda news media?

 

Before you respond, please realize that the FS community is not exclusively devoid of "right-wingers".

First, whether that publication is right or left wing is irrelevent. Sequestration is real and it will happen if Congress doesn't do something to turn things around. Of the major defense businesses, Northrop, Raytheon, Lockheed and Boeing, Northrop's percentage of business done for the defense department, theirs is nearly 90%. Because of WARN, Northrop is expected to start giving notice to folks in late October. They could lay off nearly 33,000 people effective 1 January. Great Christmas present heh? I retired from Northrop on 1 February this year, and get together with current employees on a regular basis. I can tell you that there are some very frightened folk out there.

 

Raytheon and Boeing are less at risk because they have successfully diversified their business segments relying less on the DOD. Unfortunately, Lockheed is not as diversified, and they could suffer considerable layoffs as well, but not to the extent that NG will. Would the Prepar3D folks be at risk? I would suspect that simulation, especially for defense customers, given the competition, is not going to pass the "is this a core business" test. So, yes, I would suspect that there is higher risk for that group.

 

But all of that is just speculation on my part.

Think it might be time to buy.

While P3D certainly doesn't fall into a traditional core position for LM, it may do well if they look at it as a diversification opportunity.