GEO Satellite Manufacturing Continuing Its Doldrums, Suppliers Say

Nicolas Chamussy said some orders have been postponed due to operators being under economic pressure, and the satellites being turned out are increasingly powerful with more capacity, obviating the need for as many units. The market is challenging, but several major satellite orders are "on the cusp," said Orbital ATK Space Systems Group President Frank Culbertson. But the drought is hurting many of the small manufacturers that make up satellite suppliers' supply chains, Culbertson said: "Until the market picks up ... they are worried." SSL Executive Vice President-Engineering, Manufacturing and Test Operations Paul Estey said the market needs "significant transformational changes," with satellite buyers and suppliers working more cooperatively as a route to more affordable pricing. He also said more GSO/low earth orbit constellation combinations are inevitable. Boeing Satellite Systems International President Mark Spiwak said many satellite constellation operators are re-evaluating business plans due to the downward spiral in bandwidth costs. Thales Alenia Space Senior Vice President Martin Van Schaik said the frequency in technology innovation is causing hesitancy in the market: “There is a new constellation [announced] per week -- our customers think 'What direction should we go for?'” Etsey warned there could be future problems with the proliferation of planned LEO constellations sucking up launch vehicle capacity. Spiwak said Boeing, being the nation's single largest exporter, has had conversations with the Trump administration about export and business policy, and those talks have been "pro-business." "There are some encouraging signs," he said. Spiwak also said Boeing has put forward plans for its own non-geostationary orbit constellation (see 1606230050), but it won't necessarily be competition for the company's customers since Boeing will look to possible partners to operate parts of the constellation "out of our swim lane."