Space boom strains supply chain, industry report warns

WASHINGTON — The growth of the space industry is putting new strain on the supply chain that supports satellite manufacturing, launch systems, and related technologies, according to a report from the Aerospace Industries Association and PricewaterhouseCoopers (PwC).

The report, "Strengthening America's Space Supply Chain," says the U. S. Space sector is entering a period of accelerated growth driven by commercial ventures, government missions and national security priorities.

Many suppliers were originally structured around low-volume, high-cost government programs with long development timelines. Today's market demands faster production and much higher output. Suppliers have been hesitant to expand capacity, the report says, partly because demand from government programs is often uncertain and subject to budget swings.