Increased Government Intervention is Answer to Space Industry Problems

The space industry is a bit cramped up, says Rocket Lab CEO Peter Beck. According to a recent statement, Beck predicted a possible bottling effect of the industry in the foreseeable future should it fail to expand. As it currently stands, the industry is only capable of holding out two players. However, a look into the numbers lately shows that the industry presently has 100 small companies and counting. However, Beck confirms that the industry only needs two large companies to satisfy the already minimal demand. 

Beck further states that the coronavirus will prove as a filtering tool for the industry. Several smalltime companies that rely on venture capitalist contributions are on the chopping block following a reduced capital outflow. Experts expect the situation to proceed for the next year and a half. According to Beck, the current situation makes it harder for crowdfunded startups to start and maintain operations. 

Beck expects that his company, Rocket Lab, can emerge among the top of the range. In the last years, the industry experienced a massive influx of players that saw the rise of companies like Blue Origin, Northrop Grumman, SpaceX, among other little known companies. However, as the current market prevails, there will be an expected cutthroat competition for the top positions. Becks projections into the future show the need for the industry to research better applications of the communication technologies that will open more doors for progress.

The pandemic has taken a hard toll on the industry. However, the massive players in the industry need to come up with innovative ways to combat the effect of the virus. Such includes Rocket Lab’s plans to return operations to normalcy. Rocket Lab is way ahead with its plans to reopen its New Zealand based launchpad. Rocket Lab will continue with its previous planned launch of the 12th Electron Rocket mission launch.

On the flip side, smalltime companies might get help from the government. This turnaround is after the department of defense released word that it will key in as a significant customer for worthy companies capable of handling tasks. The inclination of the government as a significant player in the industry has pulled the interests of the Pentagon. If the plans proceed, the industry will see increased government intervention. Beck confirms that government intervention is a good turn around for the industry. Rocket Lab recently completed the unveiling of its launch site at Wallops Island Virginia, where the company plans to launch Air Force satellites this coming August