(Reuters) – Spirit AeroSystems (NYSE:) and Textron (NYSE:) are more likely to be essentially the most hit amongst main U.S. aerospace and protection corporations, as they face the lack of a number of workers as soon as the mandate requiring federal contractors to be vaccinated comes into impact in January, brokerage Jefferies (NYSE:) stated on Wednesday.

Spirit and Textron would bear the brunt as an enormous chunk of their manufacturing models are positioned in Wichita, Kansas, the place simply 53% of working age people are totally vaccinated, Jefferies stated.

Gulfstream, Common Dynamic’s aerospace unit, can be closely uncovered as solely 48% of the working-age inhabitants round Savannah is vaccinated, stated Jefferies analyst Sheila Kahyaoglu.

The White Home earlier this month prolonged a deadline for federal contractors to get vaccinated from Dec. 8 to Jan. 4. There are considerations that the mandate might compound employee shortages, and alongside there was an increase in strikes as employees make the most of the tight labor market to demand extra pay and higher circumstances.

Raytheon Applied sciences (NYSE:) had warned final month that the it is going to lose ‘a number of thousand’ workers who refused to take COVID-19 vaccines

Nonetheless, Jefferies believes Raytheon (NYSE:)’s Intelligence & House is a type of finest insulated as its headquarters are positioned in a area the place 79% of the working-age inhabitants is vaccinated.

Jefferies analyst Kahyaoglu additionally stated a number of questions stay across the vaccine mandate, together with who could be liable if a provider doesn’t adjust to the mandate and what may very well be the potential penalties.

“Moreover, it stays unknown whether or not prices associated to vaccine-related lack of employees is an allowable price for aid from the Federal authorities,” the analyst added.

Spirit AeroSystems, Textron and GD didn’t instantly reply to Reuters requests for remark.