There's a lot of talk about how sequestration, the severe spending cuts set to take affect Friday if Congress doesn't do anything, and how it will impact the federal government. But local economies will also be affected.

Frederick's economy is considered strong, with more than 3500 businesses and a population that's expected to continuing growing. "But nonetheless, we're concerned that the immediate and midterm impact of these cuts could certainly affect our economy," says Richard Griffin, the Director of the City's Department of Economic Development.

In addition to residents who travel down I-270 to their government jobs, Frederick has Fort Detrick, the largest employer in the county, with both military and civilian workers. Griffin says if they are put on furlough or laid off, it could affect the local economy. "We have several hundred federal workers who live in our community. Additionally, we have many more who are employed by federal contractors. All of those folks shop in our shops, and eat in our restaurants. And if their jobs are affected, we're going to see some of the affects of that locally," he says.

Griffin says he's trying to get information out to area businesses on how they can deal with the affects of sequestration. In the meantime , he  says many are taking steps for the long term. "Know where their contracts are. Know where their payroll comes from," he says. That means businesses should have a mix of government and non-government contracts, and not just rely totally on federal contracts.

In the meantime, many companies are taking action in the short term to deal with the loss of federal funds. "One of things we've seen companies do is furlough, instead of laying people off," he says. "That's a reasonable way to lower your costs without necessarily sending people packing."