
                         THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: MONDAY, June 20, 1994                    TAG: 9406200191 
SECTION: BUSINESS WEEKLY                     PAGE: 10    EDITION: FINAL  
SOURCE: Short 
DATELINE: 940620                                 LENGTH:

MILITARY: PAYROLL IS STILL RISING, BUT TOTAL WORK IS SINKING

{LEAD} With all the hand-wringing going on about military cutbacks, one thing often is overlooked.

The wages and other compensation paid to local men and women in uniform have risen consistently each year through the defense build-down. Last year the total rose 4.5 percent. That's more money for military folks to spend locally on everything from hamburgers to cars.

{REST} It's on the procurement side where Hampton Roads is really getting whacked. It may not be obvious from the local contract figures. But talk to defense companies - most of which do business outside the region as well - and you'll get an earful about the paltry amount of work available nationwide.

The worst, however, may be yet to come. Another round of base closings is scheduled for 1995. And the cuts could get deeper in future years.

{KEYWORDS} GOVERNMENT CONTRACT MILITARY CONTRACT ALMANAC

by CNB