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FACTBOX-U.S. companies affected by government shutdown
October 7, 2013 / 3:57 PM / in 4 years

FACTBOX-U.S. companies affected by government shutdown

(Updates United Technologies item)

Oct 7 (Reuters) - As the U.S. government moves into the second week of a shutdown, Congress appears no closer to finding a way to end it, raising concerns about the economic consequences of a prolonged stalemate.

The standoff, prompted by Republicans’ determination to halt President Barack Obama’s healthcare reforms, could affect U.S. companies that rely on federal employees and funding, but a few have scaled back the number of its workers facing furloughs after Defense Secretary Chuck Hagel recalled most civilian defense employees.

Following is a list of companies and financial institutions that have warned of project delays, employee furloughs and other consequences of a prolonged budget impasse:


The weapons maker said it would furlough about 2,400 of its workers, fewer than the 3,000 it expected on Friday, because the government facilities where they work are closed due to the shutdown or the company had received a stop-work order on their program. The number of employees was expected to increase every week if the shutdown continued, the company said on Friday.


The diversified manufacturer canceled plans to temporarily lay off workers in its aerospace businesses as government quality inspectors return in the wake of the Pentagon’s decision to recall most its own furloughed civilian workers.

The company, which makes Sikorsky helicopters and other items for the military, had said last week that it could furlough as many as 4,000 workers in its aerospace businesses if the shutdown continued through this week and possibly nearly 5,000 if the shutdown continued into November.


The aerospace and defense company said there could be delays in its jetliner deliveries, including its new 787 Dreamliner, because thousands of U.S. aviation officials needed to certify the planes have been idled. The delays would also affect numerous programs and products in the company’s defense business.


The retailer’s Sam’s Club chain saw a slight slowdown last weekend at its warehouse club stores near government facilities but anticipates it could see a lift in food sales if military commissaries remain closed, the unit’s CEO, Rosalind Brewer, told Reuters. The chain is offering military families and retirees free access to its stores while the military commissaries remain closed, Brewer said.


The uranium fuel supplier, which is awaiting funds from the U.S. government for an enrichment project, said it may have to furlough some workers or slow down work at the project if the shutdown extends past Oct. 15.





** AIG



Chief executives from major financial institutions have warned of “adverse” consequences if government agencies remain closed and lawmakers fail to raise the debt ceiling by mid-October. In a meeting with Obama on Wednesday, Goldman Sachs Chief Executive Lloyd Blankfein implicitly criticized Republicans for using their opposition to the healthcare law as a weapon that could lead to a U.S. default. (Compiled by Garima Goel in Bangalore)

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