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Nanocerox CEO Mike Kelly on the potential impact of the fiscal cliff, sequestration cuts and down economy on businesses.
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The day another massive round of massive layoffs and -- rubber -- the latest announcing it's cutting 2000 workers heard a slew of companies announcing major layoffs as they stared down this fiscal cliff you monitored.
The thing -- -- about my next guest is preparing for the worst as well.
-- lay off workers freeze salaries renegotiate health care benefits the whole nine yards.
Now Sarah.
CEO Michael Kelly with me now what do you fear the most might I ask a lot of your colleagues this about what makes.
The guy like -- -- Each one.
Well -- we we retrenched -- -- fact we've already been through the reduction in force -- we've already been through the expense control.
Sort of been through management salary cuts and the health benefit.
-- negotiation is preparation.
Com for these Cox.
They were clearly evident twelve months ago that they were coming for company like capsized.
So.
If it seemed -- reason to get ahead of the curve and start clamping down.
-- how much should it was just the world economy how much of it was fear Washington just sitting on -- took us not getting anything done may be blowing this.
Fiscal cliff thing.
Break it down what worked into your saying you know what -- -- -- -- Well what what -- we were really responding to -- we're subcontracted the big defense companies and most of our businesses defense.
Related so they were telling us -- weird this is what we're doing we can't be as open.
Because a much larger companies they can't move -- -- -- a smaller company that's.
Pretty much.
One location once -- about business.
Criteria we just made the choice to.
And act quickly and to get ourselves into the position where we -- down recover.
Once things get going in the right direction.
Now a lot of those defence companies are bracing for these.
Sequestration cuts that will take a lot at a defense spending and and in fact.
Warnings -- already gone out that today and then to their workers.
You know prepare for tough times what if they miraculously then make a deal Mike that is so they avoid these automatic cuts to lay them.
Whatever.
Is everything back on is your business back on of the cuts that you made.
Unnecessary do you bring people back.
Open up other factories what do you do.
Well no I don't think.
The industry doesn't move that asked the defense industry and typically moves slow much slower than than a normal business sector so com.
I would say that we wouldn't be hiring people back we we made those changes.
To align ourselves with what the next twelve months even if congress miraculously gets back together and and avoids this the impact is already there I'm that's -- -- again -- Would the impact also be -- might -- whether it's.
President Obama -- out of four years or president elect Romney or does it make a difference.
I don't think at this time it does come I I would like a pro manufacturing president in office vs what we have today.
My -- Enron isn't me or more that than the president.
Well president should they're number one goal is to -- -- -- number two is to lead and I've seen no leadership.
From the president on this issue.
-- so it.
I would say that April manufacturing president is as Romney would happen a great a fact that it's gonna be medium term.
I think a lot of the things that have occurred up to -- -- -- gonna happen in 2000.
And thirteen and there's not much -- warning that an eight nailed the one thing we created this problem.
And we've we've lost so much opportunity in the market.
And we so we created the problem and we knew what we're getting our substantive right and I call this the perfect storm was a big storm heading your way but.
There's been a big storm hitting American manufacturing.
For the last twelve years -- twelve months and it's been this defense cuts and the tax -- and we knew it.
We let it happen and and we haven't come up with a plan to solve that and our president should he should be leading in this issue.
There's a lot of middle class that work in manufacturing and it's really sad to see -- at this point we're looking down the barrel about of the double barrel shotgun.
The perfect storm that's really and hurt middle the middle class people.
When I'm -- -- of -- Mike thank you very very -- very -- having.
Now -- -- are now.
