Aerospace industry heading for layoffs?

Monday - 9/19/2011, 10:43am EDT

Marion Blakey, president, Aerospace Industries Association

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Lawmakers approved some $350 billion dollars in defense cuts over the next 10 years as part of the debt ceiling negotiations earlier in the summer.

It could have a huge impact on not only DoD, but also on defense and aerospace contractors, who could end up the hardest hit.

Marion Blakey, the president and CEO of the Aerospace Industries Association a former FAA administrator, joined the Federal Drive with Tom Temin and Amy Morris to discuss what aerospace contractors should keep their eyes open for.

Blakey said recent and proposed budget cuts have left DoD "up against the wall."

But the impacts may be even worse for industry.

"I can tell you there will be hundreds of thousands of people laid off," she said, if the deepest cuts come to pass.

Blakey also shared what contractors should do to prepare for possible further cuts.