Space companies have started performing well, although experts had forecasted otherwise six months after the pandemic happened. The economy of this industry is taking a new shape while absorbing the ideas of startups.
The three-day Satellite Innovation 2020 conference held earlier this month revealed that the space companies performed better than anticipated in the pandemic season. At first, there was a massive drop in economic operations, possibly when the health measures came into action before the industry adopted a new normal to operate effectively.
Quilty Analytics chief executive, Chris Quilty, stated that their company performed significantly better than they were anticipating throughout this pandemic period. He noted that this industry had recuperated relatively fast than they would have thought, and the economy was already reshaping with visible optimistic outcomes.
Quilty added that some companies became anxious and filed for bankruptcy to avoid financial breakdown, but their phobia came to an end sooner than they had expected.
The executives discovered that the space companies in countries like the US had received federal immunity by being called “critical infrastructure.” This term means that they could continue with their operations while other businesses shut down to observe health regulations. Additionally, most of the US space companies depended on the government as their primary customer, a concept that other governments could not adopt for fear of supporting failing businesses.
Tyvak Nano-Satellite Systems’ chief of operations, Marco Villa, explains that many space companies did not close indefinitely during these trying times, an aspect that helped them complete their developments and start planning on launch services in time. Nevertheless, he pointed out some supply chain struggles, especially where these space companies’ suppliers completely shut down.
Space companies are happy that the investors never abandoned them through this period but instead chose to invest more to safeguard their space operations investment. Nevertheless, space companies have struggled to raise capital until they decided to enter acquisitions with the special acquisition corporations (SPACs). These SPACs provided a financial base for companies requiring an expansion.
HawkEye 360 president, John Serafini, admitted that he witnessed companies capable of raising enormous capital, gaining the upper hand in the market over their competitors. He added that the successful companies in their fundraising also drifted ahead in development from their competitors to initiate profitable operations like rideshare missions.
Serafini admitted that there is enormous investment capital, although investors will be watching from the crowd to observe space companies’ performance and their potential before investing.
In conclusion, all the economic operations that have transpired in the space industry have taught the companies some lessons they will consider while conducting their operations. Most of the adamant companies about adjusting to new changes will be strategizing on how they can grow in this dimension.