Tomahawk, WI 10/07/2013 (BasicsMedia) – The government shutdown that is currently going on in the U.S. is making companies to think of different ways of staying afloat. It is not secret that Lockheed Martin Corporation (NYSE:LMT) is one of the largest, if not the largest, U.S government contractor. Not only that, but the company, with market cap of around $39.31 billion, remains the biggest employer in Colorado Springs. Since it gets a lot of revenue from the U.S government, it is now being forced to think of ways of remaining in business despite the government shutdown that is going on.

 The first thing which LMT, as well as other companies which trade with the U.S. government, has done, is to send some of its workforce home. There are reports that LMT is firing close to 3,000 workers. The number could go much higher if the government shutdown is not resolved soon. Rather than fire and get rid of its employees permanently, the company prefers to carry out an activity commonly referred to as furloughing. Any company which runs a factory is being affected in a manner which is quite similar to LMT, and has taken the same steps.

Since a large number of LMT’s employees often work from and on government facilities, which have then been closed as a result of the shutdown, the company has no choice but to put them on furlough. Secondly, since LMT is the largest U.S. government contractor, it has posted a number of its employees on government facilities and they can’t continue working if their work is not being examined through supervisors. As long as the shutdown continues, the work which has to be supervised will not receive the attention it needs and this could end up causing a lot of delays.

Delays in finishing off some of these jobs, will probably lead to delay in payment. The money or revenue which LMT was probably looking to receive from the U.S. government after offering some of its services may be delayed slightly. The delays will lead to more problems for the company since it may affect its quarterly earnings and financials as well. During the few days when the U.S. government shutdown has been going on, close to 800,000 have been rendered idle. This isn’t good since it means a number of these companies can’t offer their services.

 The figure of workers being asked to go back home until the government shutdown is over could keep increasing with each passing day. It seems that those companies which require the input of federal officers due to their close relationships and transactions with the U.S. government will be unable to continue functioning like they have always done. At this moment, it is quite difficult to tell with any degree of certainty when the shutdown will come to an end. It is a political matter which has grave bearings on many businesses, and the economy as a whole.

 The U.S. government shutdown comes hot on the heels of the financial depression of 2008, whose effects are still being felt to date. Perhaps this is a lesson to LMT that it needs to find ways of cushioning itself against such possibilities by reducing its business with the U.S. government. But, this is easier said than done.

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