Officials say Ameriqual starting to feel effects of sequestratio - 14 News, WFIE, Evansville, Henderson, Owensboro

Officials say Ameriqual starting to feel effects of sequestration

Posted: Updated:

The Chairman of the House Armed Serves Committee made a stop in Evansville to visit a local military supplier and speak about how the sequestration is affecting the military.

He warns of more budget cuts on the horizon, and the chairman says he's very concerned about what could happen.

On Monday, Buck McKeon and Congressman Larry Bucshon were given a tour of Ameriqual, a local company that produces ready to eat meals for the military.

It's also a company, they said, is a victim of those federal budget cuts.

"It's affecting our military and it's affecting all of the suppliers to the military," McKeon says.

McKeon says the country is only starting to feel the effects of deep federal budget cuts that amount to half a trillion dollars over the next 10 years.

"And now the President is talking in a budget another $150 billion on top of that," McKeon says.

Those are cuts that, McKeon says, will have a ripple effect on companies like Ameriqual, the nation's largest MRE producer.  

On a tour of the facility, McKeon says plant managers showed him exactly how the company has already been impacted.

"They're running one production line a day, normally they run three. So they've had to lay people off," McKeon says.

49 production workers at Ameriqual were laid off back in May, in part, due to a decline in demand for MRE's.

14 News is told that's a direct result of a reduction in deployments overseas due to cut's in the military's budget. Cuts that, McKeon says, could soon mean even fewer resources for military soldiers and military suppliers all across the country.

"In Washington, we should step up to the plate and do the things that we need to do to make sure that they're okay," McKeon says.

McKeon says it's the president, not congress, who needs to act to solve the problem. 

Copyright 2013 WFIE. All rights reserved.

Powered by WorldNow