Aerospace transport companies like Space X are drastically reducing the cost to launch payloads into low earth orbit. XCOR Aerospace Inc. is drastically reducing the cost per tourist of a sub-orbital flight, and Bigelow Aerospace is launching inflatable space habitats intended for tourism, with one of the first to be installed on the International Space Station.
You may be surprised to know that all of these companies are interested in locating and launching from Spaceport Georgia in Camden County.
An A.T. Kearney study commissioned by the California Space Authority, a now-defunct nonprofit, quantified the U.S. space market as between $70 billion to $82 billion in 2009 and the global market at more than twice that amount. Looking at the space market, we can see a ripple effect as the direct investment in the space industry is multiplied through suppliers.
Another report says the economic impact of the space industry was $277 billion in 2010, a yearly increase of 12 percent. The report also cited the U.S. space industry as a supporter of more than 1 million jobs.
It is reasonable to assume that if Georgia initiated a serious market development effort, a 1 to 3 percent increase in U.S. space market share is feasible in three to five years. In an $80 billion space industry, a 1 percent market share increase equals $800 million of additional direct investment in Georgia. How many other markets is the state pursuing that match that kind of potential?
Georgia has been described by two commercial space companies as “the best location on the East Coast for launch.” The Camden County Spaceport site has been referred to as “a gold mine.” The location launches to the east over water. Forty-eight other states wish they had our geographic location to launch and logistically support launches in Florida and Georgia.
Georgia Tech produces more aerospace engineers than any other program in the country, providing a future Georgia space industry employer the luxury of a robust pipeline of engineers. Blue-collar skills in the Georgia aeronautics industry have crossover application in the space industry. Georgia is a right-to-work state; California, Colorado and Washington, where a lot of the space industry is currently located, are not. By any metric, Georgia has a strong story to tell a potential space industry employer.
The probability of Georgia increasing market share by 1 or 2 percent in the next few years is pretty high if the state simply commits to developing the space industry. The space market’s $80 billion size and Georgia’s current market share make this opportunity worth the investment.
Space is an industry of the future. It offers diversification to the aeronautics industry, and it will some day morph into a transportation industry.
The space market is real. Georgia can win against other states. All we need is the will to aggressively pursue this emerging market.
Bob Scaringe is chairman of the Georgia Space Working Group.
