School closures affect defense industry

Defense industry production has been most affected by the closure of schools, rather than funding cuts or supply chain gaps, according to USNI News. 

Many employees have not been able come into work because they have children at home, the story said.

 “The number-one driver in attendance right now, by far, is the schools are closed,” Mike Petters, chief executive of Huntington Ingalls Industries, said during a call with analysts. “Folks have to decide how they’re going to take care of their kids and all of the usual mechanisms for people to take care of their kids are not available either. So that’s our biggest driver in attendance.”

 Petters said his company has experienced a 75% worker attendance rate.

But some defense industry companies are seeing things begin to turn around. 

“We’re not through with the disruption at this point in time, but we are seeing positive trends both in our own facilities and with our suppliers,” Northrop Grumman Chief Executive Kathy Warden told USNI News. “We are starting to see absenteeism reduce and more people coming to work in the production facilities. We are seeing small businesses that had to pause operations for a short period of time resuming their operations. I would say that the trajectory is positive, but we still have uncertainty ahead.”