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The Environment
Pages 7-12

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From page 7...
... Encouraging contractors to build facilities in order to bid competitively has led to a proliferation of industry's facilities and, in some companies, significant excess capacity, especially in the current budget environment. These historic preferences affect operations philosophies.
From page 8...
... Second, political support for civil space probably peaked with the Apollo program. Third, efforts to reduce federal budget deficits have increased pressure to cut most federal program budgets, including space programs.
From page 9...
... THE U.S. SPACE MARKET In the current environment of reduced government spending on space programs and the lack of clear articulation of long-term national objectives in space, it is sometimes assumed that growing commercial investment will offset shrinking government funding.
From page 10...
... Launch Vehicles Because of the declining number of projected satellite launches from the United States and the smaller size of many anticipated new satellite systems, there is significant overcapacity in the medium and large launch vehicle production base.9 Growth in commercial launches will not create sufficient demand to alleviate this situation. Attempts by General Dynamics and Martin Marietta to market commercial variants of Atlas and Titan launch vehicles developed for the government resulted in significant losses to both companies.~° Causes contributing to the situation are obsolete, manpower-intensive designs and subsidized 9 In both the United States and Russia, conversion of ballistic missiles to provide low-cost launch vehicles has been considered.
From page 11...
... Declining budgets in both the civil and military space programs will increase pressure for greater cooperation among the relevant agencies. Redefining and clarifying their roles and missions offers opportunities to reduce redundant facilities and increase efficiencies, but cultural differences must be recognized and managed to take advantage of these opportunities effectively.
From page 12...
... launch vehicle posture makes future planning difficult. Foreign competition has newer facilities, is better focused for efficient operations, and has lower prices.


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