Contractors still on edge of "cliff"

FAIRBORN, Ohio (WDTN) - Normally a fence wouldn't be much of an obstacle for a company like Peerless Technologies, except that it becomes a bigger barrier when the government is sitting on it.

"We just need for Washington to allow us to do what we do best and that is create jobs," says Peerless Technologies President Michael Bridges.

Peerless Technologies owns the land on the other side of the fence from its Fairborn headquarters.

It would like to build on the property and add more employees to the 270 it already has, but as a contractor that does 85 percent of its business with the defense department and Wright Patterson Air Force Base, the potential for major cuts through sequestration has left expansion plans as chilled as the snow covering the ground on the property.

"An environment of uncertainty like this is not conducive to making large investments in facilities, technology or infrastructure or adding new employees," Bridges says.

Peerless isn't alone in worrying about what's next.

Sequestration includes $500 billion in defense cuts, which were supposed to take effect at the start of the year because Congress and the President couldn't reach a compromise on previous budget cuts.

Rather than solve the sequestration issue, the "fiscal cliff" deal in Washington only delayed it two months.

"By moving it out just keeps it hanging over the heads of businesses," says Deborah Gross with Dayton Defense.

Gross thinks something will be done to eventually stave off sequestration, but until that happens defense contractors can't help but feel fenced in.

"I just know across the board companies are frustrated," Gross says.