Nortrop Grumman Faces Cuts to Global Hawk Production

A little discussed part of the House’s version of the Defense Appropriations Bill is a cut in number of the Global Hawk strategic UAV from five to two. This was done because the House felt that the development of the latest version was behind schedule so some procurement dollars could be saved by delaying sixty percent of the planned quantity. Northrop Grumman feels that the schedule has been caught up and the program is on track. The Senate has supported the full buy of five. That means that the exact number will have to be worked out in the Conference Committee and hopefully for Northrop that will be the full amount. If the aircraft are cut Northrop will have to lay off some workers and it may lead to a production break in the line. This would seriously impact future buys as there will be a cost associated with starting the line up again.

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