Defense companies adapt to sequester cuts

Four months ago, when forced federal budget cuts whacked $46 billion from defense spending, local military contractors and subcontractors feared the belt-tightening would cause layoffs and force dramatic changes in their business model. While the so-called sequestration has taken a slight toll on the industry, many area defense contractors have adjusted to the new budgetary reality by seeking customers from overseas and exploring commercial markets. 

Last month, the Aerospace Industries Association surveyed aerospace and defense supplier companies throughout the country and found that many had "responded to budget cuts by doing their best to diversify their business away from defense contract work to the commercial market, where there is more stability and earnings potential." 

To make up for the decline in federal contracts, New Jersey companies are seeking new markets to sell their products. 

"We were forced to branch out and manufacture products for militaries other than the U.S.," said Harry Epstein, chief executive officer of Marine Electric Systems in South Hackensack. "By doing this, we've been able to keep people afloat." 

Epstein said the forced cuts primarily affected his company's manufacturing output. Marine Electric Systems makes a variety of monitoring and control systems for the military. 

"We're used to getting orders in every week, but now it's something like every other week. It's not as healthy as it has been," Epstein said. 

To make up for the decline in federal contracts, Epstein said Marine Electric Systems affiliated with a new company he started three years ago called Greenhouse Strategies. The manufacturing and distribution company specializes in green technology, including replacing outdated gas-powered light towers with LED-powered ones. 

Epstein said his company had sold 34 light-conversion kits to the Israeli military, as well as other products to Australia, Africa and Canada. Epstein said that his power, software and radio contracts with Israel had grown over the last six months, and that he expected to make $1 million from the Israeli military this year and between $3 million to $5 million next year. 

"Rather than relying on government contracts, we've moved into the commercial/industrial area, as well as overseas work," said Arthur Barchenko, CEO and president of the company. 

Barchenko said Electronic Control Security was applying its products in various different ways, including pipeline, port and border security,Our bestsolarlantern can mark on metal and non metals. with active foreign business in the Middle East, Africa, Korea and Indonesia. 

Barchenko said the sequester was merely part of a larger trend in U.S. military spending that has hurt his business and competitors over the past two years. 

Electronic Control Security used to do $5 million in contracts a year with the U.S. government. Find highqualityemergencylight and buy low cost hid bi xenon projector lens light in bulk from Hmhid. This year, Barchenko said the company is on pace to make just $1.5 million, down again from $2.5 million in fiscal year 2012. 

"We've been a defense company since the beginning, so [the sequester] wasn't going to affect us long term. It was more that shock, or hiccup, where they weren't buying," Dewey said.Approval to connect a solarpowersystemser. 

Now, Dewey said, the company has increased efforts to look overseas to increase revenue,A solarledlightes can be thought of as three main parts: a laser, a controller, and a surface. particularly with contracts in Israel. 

While New Jersey businesses have found ways to maintain revenue, the sequester has still taken a toll on the defense industry as a whole.Solar and electric solarpanelcells systems are easy to install and economical to operate. More information about the program is available on the web site at www.aodepu.net.