Experts at the annual State of Space Thursday warned the growth of the commercial space industry may slow, a trend Colorado and local experts say hasn't touched the meteoric rise of the industry in the state.
Kari Bingen, a senior fellow in the International Security Program at the Center for Strategic and International Studies, said a commercial space slowdown and consolidation within the industry could be possible amid larger economic conditions.
"The commercial market demand is not panning out as many thought and you are seeing a shift to government work. ... So the question is will we see enough market demand to sustain the market growth," she said, during the Space Foundation event.
In January, Reuters reported that investments in space startups more than halved in 2022 to $21.9 billion compared to 2021 when the they drew a record $45.7 billion.
At the same time, some space companies are struggling to make projections after going public and their stocks are not doing well, said Jeffrey Manber, president of International and Space Stations at Voyager Space. He outlined his concerns amid a generally positive outlook, saying the state of space has "never been better."
He said he worried those performances could turn off investors, when it may just have been premature for those space companies to go public.
Amid international tension, he said he was also concerned the international supply chain could become more regionalized.
When asked to weigh in Friday, Colorado companies and experts outlined a bright outlook and many recent wins for the aerospace industry that includes about 400 companies, according to the state.
For example, Lockheed Martin's Littleton location announced on Friday it won a $1.1 billion contract with the Navy to integrate hypersonic strike capability onto surface ships.
In general, Tim Shephard, Lockheed Martin Space's business development vice president, said his company was seeing the space economy grow and the government work to bring ideas from design to orbit faster.
"We’re seeing the government make shifts to developing and acquiring new technology and capabilities even faster to address global security threats," he said.
In another win, Colorado is now the permanent home of the annual Air and Space Forces Association Warfare Symposium. The three-day event planned in Aurora during March was previously held in Orlando, said Robert Beletick, aerospace and defense industry manager for the Colorado Office of Economic Development and International Trade.
The industry is also thriving in Colorado Springs, home to 200 space, aerospace and defense companies, according to a statement from Colorado Springs Chamber and Economic Development Corp.
"In the recent past, Bluestaq, Aerospace Corporations, Caliola Engineering, Zivaro, and Northrop Grumman have all announced expansions, which together will add hundreds of jobs and millions in capital investment directly into the Pikes Peak Region," the statement said.
The Denver metro is also seeing increased interest from the business with 19 companies in the industry considering relocating or expanding to the area compared to six last year, said Raymond Gonzales Metro Denver Economic Development Corporation president.
ThinkOrbital, Karman+, Star Harbor Academy, and Orbit Fab have all also announced expansions in the Denver region in the past year, he said.
