Proposed defense spending cuts impact Oshkosh

OSHKOSH, Wis. — The Obama administration has proposed cutting billions of dollars in spending for military vehicles as the U.S. pulls troops from Iraq and Afghanistan. That means funding for heavy tactical vehicles built by Oshkosh Corp. will drop $600 million next year.

The Pentagon’s spending plan for fiscal 2013 includes about $11 billion for ground vehicles, about 32 percent less than 2012. Oshkosh Corp. employs thousands of people building vehicles.

Company spokesman John Daggett tells the Journal Sentinel that it’s prepared for the reduction in work because Oshkosh has anticipated the reduced defense spending.

The next big defense contract on the horizon for Oshkosh and other military manufacturers calls for replacing an aging fleet of Humvees. It’s worth $20 billion. But, its status is not yet clear.