Space

Government Intervention Crucial for Space Industry

The space industry is the latest among the sectors that are most significantly affected by the coronavirus. While the industry struggles to stay afloat even in these uncertain times, there is a belief that the government is the answer. There is speculation that the space industry is overcrowded. Such speculation follows the notion that the demand for products form the space industry exceeds tiger demand. 

In a previous statement, a top executive from Rocket Lab expressed his views claiming that the industry is only capable of supporting two major companies at a time. Taking a statistical look at the industry reveals an influx in smalltime companies in tune to over 100 in the last year alone. The advancement is excellent in terms of competition as well as growth. However, looking at the available demand portrays a massive influx of demand surpassing available supply. 

In this regard, experts in the industry advise that government intervention is necessary to save the industry from collapsing under its weight. Surplus demand exerts excessive pressure on suppliers to reduce their prices to win clients. As the competition looms, there will be a need for the industry to undergo a bottleneck aimed to filter out excess companies. However, the most likely cutthroat instruments used in such scenarios is the implementation of a government license on suppliers. 

In this regard, government officials in this connection view the move is necessary to provide order to an already disorderly industry. However, the industry still has potential. There is a large number of capital investors ready to place their support on capable projects. According to the vice president of business development and government affairs, Josh Brost, the industry is experiencing an influx of venture capital investors. 

Brost goes on to state that the new breed of investors is not only looking to invest in a good idea but a government-approved one at that. Josh believes that startups that invoke the use of government based licensing will have a better chance at securing capital venturists in the long term compared to their counterparts that lack government documentation. 

Times are getting rough for the space industry. For a startup to acquire credible grounds against its competitors, there is a need to summon government intervention. It is evident that in government documentation for businesses facing the chopping block provides a boost in the procedural operations. Likewise, government intervention provides the federal government a tool to monitor such startups and keep them in control. It is unclear whether the move to license the space industry will be sufficient. However, it does carry advantages compared to undocumented operations   

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