Space Enterprise Council Presentation

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Space Enterprise Council Presentation Institute
for Defense Analysis Air Force Space Command/
Independent Strategic Assessment Group February
20, 2008
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• WHO WE ARE
• Founded in 2000 out of a joint NASA/DOC
  conference focusing on commercial space
• Now focuses on all aspects of the space industry
• Commercial
• Civil
• National Security
• Is affiliated with the U.S. Chamber of Commerce
• USCC represents 3 million businesses and 1500
  Chambers of Commerce
• SEC can tap into the USCCs wide swath of
  resources

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• Tasking From the Institute for Defense Analysis
  AFSPC ISAG
• Discuss long term trends in the commercial space
  industry
• Discuss current environment within the industry
• Recommend four to five issue areas (as defined
  by the AFSC tasking) that the AFSPC ISAG can
  focus on

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• In order to increase knowledge, discovery,
  economic prosperity, and to enhance the national
  security, the United States must have robust,
  effective, and efficient space capabilities.
• - U.S. National Space Policy (August 31, 2006)

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• Commercial Space Industry Caveats
• Global leadership in space is a national
  imperative
• Sustaining technological superiority in space is
  a U.S. national interest
• Given the interdependence between the defense,
  intelligence, civil and commercial sectors of
  space, U.S. leadership in all four is essential
• A strong U.S. industrial base is critical to the
  vitality of the U.S. space industry
• A prudent export control policy is needed to
  safeguard sensitive technologies yet U.S.
  companies to compete on a level playing field
  with their international counterparts
• Whenever possible, government should not compete
  with the commercial sector

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• LONG TERM INDUSTRY TRENDS AND CURRENT STATUS OF
  THE INDUSTRY

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• Space Industrial Base
• Overall health is in adequate shape but showing a
  downward trend
• 2nd, 3rd , and 4th tier suppliers are being
  negatively affected by a number of issues
• Many of these capabilities could go away within
  the next decade
• Is largely dependant on the U.S. defense/national
  security budget

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• Export Controls
• Have adversely affected U.S. companies ability to
  compete for foreign space business
• Have encouraged some countries to pursue
  ITAR-free space products
• Have also affected companies ability to attract
  and retain foreign nationals
• This situation has particularly had a negative
  affect on small and entrepreneurial companies
• Have been a hindrance in G-to-G talks with our
  allies

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• Foreign Space Capabilities
• Global commercial communications satellite market
• U.S. held the global lead in the 1990s
• Foreign competition has significantly closed the
  gap in the last decade

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• Participation in the Foreign Markets Impacted by
  Export Policy
• A short list of U.S. where U.S. components and
  technology are being designed out
• Creation of ITAR-free European apogee motor
• ITAR-free European thruster control valves
• ITAR-free European star tracker
• Microwave components from the Astrium
  Megha-Tropiques mission instruments
• Alcatel satellite bus
• GRACE mission where U.S. system integrator was
  replaced by a foreign contractor

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• Company Perspective on Being Competitive in
  Foreign Market

Source AFRL Analysis 2007
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• Foreign Space Capabilities
• Where once there were a few, now there are many

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• Weaknesses in 2nd and 3rd tier companies
• Areas of concern
• Solar Cells
• Li-Ion Batteries
• Traveling Wave Tubes
• Visual Imagers
• Optical Coatings
• Read-out Integrated Circuits
• Infrared Focal Plane Arrays
• Solar Cell Substrates

Source Aerospace Corp. Analysis, 2006
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• Crisis in the Workforce
• 2002 Presidential Commission on the Future of the
  Aerospace Industry stated that 27 of the
  aerospace workforce could retire by 2008
• According to the OSD, there is a shortfall in
  30-40 year old scientists and engineers
  supporting the space industry
• Equates to a gap in program managers
• Recruitment
• Foreign students earned more than half of the
  STE PhDs in 2005foreign born workers make up
  more than a quarter of the U.S. STE workforce
• The U.S. ranks low in global rankings in terms of
  graduating engineers

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• OBSERVATIONS
• Value-added services market based on commercial
  satellite applications has exploded
• Mobile and Bundling are the killer apps
• Economic and National Security increasingly
  intertwined so
• Neighborhood Watch type program desperately
  needed for CONUS

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• OBSERVATIONS CONTINUED
• Comprehensive analysis of both commercial space
  and value-added services needed
• What are the win/win models for govt and industry
• NASA COTS model should be considered by DOD
• Analyze quicker technology turns in the private
  sector versus the govts long acquisition cycle
• Whenever possible (and pursuant to the National
  Space Policy), government should not compete
  against the private sector

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• Recommended Areas for Study and Analysis
• Providing a Strategic Vision and a New Strategy
  that recognizes and leverages the space-based
  capabilities of the DODs mission and commercial
  partners
• Leveraging a more responsive commercial cycle to
  ensure national security users especially
  combatant commands sustain asymmetric advantages
• Inventory of space enterprise capabilities-
  space-based capabilities, providers and users

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• Recommended Areas for Study and Analysis
  Continued
• Forces, motivations, processes and risks in
  acquiring commercial capabilities
• Compare the commercial cycle to the government
  acquisition cycle to understand implications
• Forces and motivations for more integrated
  strategy for providing space-based capabilities
  from all sources

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• More information on the Space Enterprise
  Council can be found at www.uschamber.com/space