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Orange County Firms to Bear Large Share of U.S. Spending Cutbacks

Researched by ELENA BRUNET / Los Angeles Times

Even as troops in the Persian Gulf rain smart bombs and laser-guided warheads on Iraqi forces, the United States is preparing to slash spending on weapons. The 1992 budget proposal submitted by President Bush calls for a 21% cut in Defense Department procurement, and the Democrats in Congress are likely to seek further reductions.

While the long-term impact of Operation Desert Storm on defense firms remains unclear, a report issued by the state of California last summer projected that total defense spending in the state would be reduced a total of 22% between 1990 and 1996. Orange County, where per capita defense spending is second in the Southland only to that of Los Angeles County, is likely to bear a significant share of any such cuts.

Already, contract awards to the top 10 defense firms in the county have fallen 14.9% from fiscal 1987 to fiscal 1989. The cutbacks have been made largely at the expense of the four biggest firms: Hughes Aircraft, Rockwell International, McDonnell Douglas and Ford Aerospace (now Loral Aerospace), which collectively saw their contract awards shrink by $213 million.

ORANGE COUNTY’S TOP 10 Fiscal 1989 Prime Contract Awards General Motors Corp.: $764.5 (in millions) Hughes Aircraft Corp. High-tech electronic components, defense systems,

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radar, sonar and battlefield communications systems. Rockwell International Corp.: 735.4 (in millions) Satellite & Space Electronics Division Navstar global positioning system. Autonetics Electronics Systems Sophisticated components and systems for military

navigation and communication; guidance systems for

strategic nuclear missiles; Hellfire antitank missile. McDonnell Douglas Corp.: 649.4 (in millions) Systems Integration Division

Computer and communications systems.

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Space Systems Division

Space stations; Delta-launch vehicles; mission planning

and payload integration services for the space shuttle.

Ford Motor Co.: 106.5 (in millions) Ford Aerospace Corp. Guided missiles and systems; space and missile propulsion

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units; military satellites; tactical weapons and

military command, control and communications systems. Figgie International Inc.: 94.7 (in millions) Interstate Electronics Corp.

Range testing for Trident missiles; global positioning

equipment used for determining position, location,

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velocity; flat-panel and other high-tech display screens;

communications technology for satellite ground station. Parker Hannifin Corp.: 53.6 (in millions) Parker Bertea Aerospace Group

Flight control systems components; fuel pressurization,

temperature and vent systems, in-flight refueling receptacles

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and nozzles; hydraulic control modules and nose-wheel steering

systems; aircraft fire suppression systems and missile

propulsion control valves.

Northrop Corp.: 43.2 (in millions) Aircraft Division, Anaheim facility

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Airframe sub-assembly and fuselage components. Brunswick Corp.: 35.3 (in millions) Brunswick Defense Division

Manufacture of TALD, tactical air-launched decoy; fire-detection

and suppression units for space vehicles; filters and fuel

management systems for aircraft and space vehicles. All-Bann Enterprises Inc.: 24.4 (in millions)

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Fuel- and water-pumping equipment. Cartwright Electronics Inc.: 17.4 (in millions)

Electronic scoring systems for testing the accuracy of missiles

or projectiles and other electronic warfare systems. Per Capita Defense Contract Awards Los Angeles: $1,345.5 Orange: 1,272.7 San Diego: 940.0 Ventura: 903.6 San Bernardino: 566.3 Riverside: 90.3 Statewide Share of Defense Contracts

County Pct. of State Total Los Angeles 45.4 Santa Clara 16.7 Orange 11.3 San Diego 9.0 San Bernardino 3.0 Santa Barbara 2.4 Ventura 2.3

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Total Awards to Top 10 Contractors in Orange County 1987--$2.82 billion 1988--$2.46 billion 1989--$2.40 billion


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