Space

More Government Intervention Needed to Save Space Industry

Recent start-ups in the space industry will face strict requirements in joining the industry from now on. This outcome is due to the excessive number of players in the market that supply space-bound products. Due to this influx, the space industry is in danger of a crowding-out effect that will affect most recent start-ups 

Government executive workers recently brought forward their issues concerning the effect that the pandemic has on business level suppliers. This concern covered the issue of prevailing space companies that rely on private investors to provide funding to help them deal with the pandemic season. The most concerning sector that came up was the small-scale space firms that will be most affected. 

According to  Brost, the federal government is under obligation to provide grants or direct funding could that will keep such companies afloat for a couple of months. However, Brost ascertains that the best measure to ensure the industry’s survival is that the government should proceed and provide artificial demand for those companies. 

Brost confirms that currently, the companies are willing to sell products their products to the government. The process is a strategy to maintain creditors by signing a government contract.

Referring to the matter, Eric Stallmer, the president of the Commercial Spaceflight Federation, stated that delayed demand is the primary cause of trouble for a majority of recently emerged companies in the space industry. The collective band of companies is dedicated to change the current rules, which inherently prohibit many start-ups from being part of the coronavirus relief program recipients. 

According to the players in the industry, recently launched ventures in the industry are not covered in this definition. Until now, the industry’s start-ups received funding from venture capitalist organizations, which usually finance in a corporate portfolio. For an organization to qualify for the SBA loan program as a small business, it needs to have less than 500 workers employed. The SBA extends a ‘membership guideline’ while determining the legibility of a smalltime company, whereby companies must provide all employee records.

At the Intel community, the global epidemic has stiffened concerns whether organizations that produce sensitive technology for public safety and are now under economic strain will be priorities for foreign buyers.

Carissa Christensen, CEO of Bryce Space and Technology, says this has been a problem for years. Nonetheless, new questions regarding China’s contribution to vulnerable businesses emerge from the ongoing turmoil in the US Congress.