- Northrop Grumman CEO Cathy Warden said the country’s chronic labor shortage presents additional challenges for America’s defense business.
- Warden told CNBC on the sidelines of the Reagan National Defense Forum in Simi Valley, “When I think about the challenges we may all face next year, the labor shortage we’re seeing suddenly comes to mind. I am at the top.” California.
- The warden also expressed concern about the ongoing disruptions in the global supply chain, partly resulting from the coronavirus pandemic.
WASHINGTON – Northrop Grumman CEO Cathy Warden said the country’s ongoing labor shortage was the primary focus for America’s defense business.
Warden told CNBC’s Morgan Brennan in an exclusive interview on the sidelines of Reagan National, “When I think about the challenges we all might face next year, the labor shortage that we’re seeing suddenly happens. is at the top.” Defense Forum in Simi Valley, California.
“We’ve seen an increase in demand for the types of skills needed to support our work, plus we’ve seen a decline in labor participation rates,” Warden said. The workforce was their “primary focus” in 2022. ,
Warden’s remarks came after a jobs report showed the US economy created far fewer jobs in November than expected. In an address on Friday, President Joe Biden highlighted the country’s weak jobs report and instead focused on the low unemployment rate, which fell from 4.6% to 4.2%.
The warden also expressed concern about the ongoing disruptions in the global supply chain, partly resulting from the coronavirus pandemic.
Along with the labor shortage, Warden said the defense giant saw shipping delays and chip shortages during its third quarter, in alignment with rising infection rates due to the emergence of the Delta variant. When asked about the Omicron version, the warden explained that the defense industry will follow a playbook developed during the coronavirus pandemic.
“We will continue to navigate through these COVID-related impacts,” he said, adding that “the industry has been able to do this over the past 21 months and we anticipate that we will be able to do so going forward.”
The company’s stock price has jumped nearly 20% year over year.