Space News - March 22, 2022

U.S. government urged to address supply risks in the space sector

Access to supplies becoming more critical as "space is increasingly a strategic asset"

WASHINGTON — The U.S. military traditionally relies on a core group of defense contractors to ensure it has access to critical supplies and equipment at all times. But as space becomes increasingly important to military operations, DoD should address supply risks in the space sector given the volatility of the market, experts said March 21 at the Satellite 2022 conference.  

In aerospace and defense, the government takes a long view on what capabilities it needs and where they will come from, said J. Armand Musey, president and founder of Summit Ridge Group, an investment banker and advisory firm.

“They know what Lockheed is doing or what Boeing is doing and so forth,” Musey said. When it comes to space, “now you have a lot of entrepreneurs really mixing up the market. And the government really doesn’t have a good idea of what’s going to be competitive in five years.”