TAMPA, Fla. — A recent notable job cuts are only a temporary setback for a space industry that is expected to see significant growth in workforce and revenues, according to participants in the Space Foundation’s quarterly investment discussion on April 8.
According to Kelli Ogborn, vice president of space commerce and entrepreneurship at the Space Foundation, employment in the private space sector has risen about 30% over the past five years, compared to less than 10% for the overall United States workforce. She stated this during the 39th Space Symposium in Colorado Springs.
However, the employment situation is not as positive in other parts of the space sector.
Ogborn mentioned that NASA’s Jet Propulsion Laboratory announced in February that it would lay off 530 employees, which is about 8% of its staff, due to budget uncertainty for 2024.
Justin Cadman, co-CEO of Quilty Space, a research and consulting firm, emphasized the importance of seeing NASA’s workforce problems in a broader context.
Based on Quilty Space data, government investment in space has grown significantly over the last five years, at a compound annual growth rate (CAGR) of around 10%, globally and in the United States.
“So in that context, the recent budget pressure is just a short-term issue in the long-term growth trend,” Cadman said.
He also mentioned that about $4 billion of venture capital was invested in space companies in 2023, which is significantly higher than just 10 years ago.
“The growth we're seeing is quite widespread,” Cadman added, “and I think it reflects the long-term trend, despite some temporary setbacks.”
Ian Christensen, director of private sector programs for the Secure World Foundation, stated that the expansion efforts of major commercial space companies such as SpaceX, Blue Origin, and Amazon’s Project Kuiper are creating more opportunities for workers to move between organizations.
According to Ogborn of the Space Foundation, the space economy is currently valued at $546 billion and is expected to grow by at least 41% to $772 billion by 2027.
Commercial assistance
Cadman mentioned during the panel that based on history, ongoing pressure on U.S. government space budgets will likely be more focused on the civil sector than on national security.
He expects the U.S. government to continue seeking innovation in the commercial market to address funding challenges.
Cadman also highlighted the increase in funding for the DoD’s Defense Innovation Unit in the latest defense spending bill, which aims to identify commercial technologies with military applications, emphasizing the importance of leveraging the features of the capitalist economy and deep capital markets in partnership with the government.
“So the idea is that, by leveraging the features of our capitalist economy with entrepreneurial actors and deep capital markets, government can form a partnership that is more than the sum of its parts — and particularly in a constrained budgetary environment, it’s critical to be able to leverage that,” he said.
“That’s the way that I see a path forward to ensure ongoing space superiority.”
The U.S. government's capability to use a diverse group of local creators is also a strong point compared to other space countries.
China can quickly gather resources and focus them in one direction, Cadman said, but being able to utilize “innovation, entrepreneurial spirit, capital markets … can surpass anything that an authoritarian state can throw at you.
