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The Pentagon announced the need for import substitution in the space sector
Every year the Pentagon prepares a report to Congress on the state of the US military space industry. The latest report was published on January 14. US Department of Defense report warns US military space and missile programs may lose domestic sources of production of key components. Coordinated import substitution programs are needed to rescue the situation.
The moment of the launch of the ICBM. Image source: U.S. Air Force
“The Defense Department’s space industrial base remains a niche market with very specialized and capital intensive requirements,” the document states. This has led US military satellites and missiles to continue to rely on specialized equipment and components that are no longer manufactured domestically. Moreover, the report says, individual investments (read – the market) cannot effectively manage the situation.
The report says that many existing and planned systems rely on outdated technologies and practices, as well as unreliable or foreign sources: “Reliance on foreign sources of critical technology, competition from subsidized low-cost imports, and volatile demand from space-based enterprises will undermine national security important space capabilities and critical skills and will jeopardize future access to domestic industrial sources that meet the requirements of space programs “.
Separately, it can be noted that specialists are concerned about the limited capabilities of domestic production of high-precision gyroscopes used in military spaceships, launch vehicles and rockets; lack of cheap solar cells suitable for use in space (foreign competitors produce high-efficiency cells at lower prices); the explosive growth of commercial space launch services in China; the decline in production and experience in the production in the United States of tubes for tube amplifiers traveling wave, which especially threatens the niche of spy satellites (the only domestic supplier competes with a single foreign supplier for the production of amplifiers suitable for use in space); and, finally, the incomprehensible situation with the pandemic.
We add that today in the United States there are six largest suppliers of defense products – these are Lockheed Martin, Boeing, Northrop Grumman, Raytheon, General Dynamics and BAE Systems. Collectively, they won 32% of all U.S. Department of Defense contracts in 2021. But investment in the industry is falling and consolidation is growing faster than expected, which also raises concerns.