Several Alabama companies in the aerospace supply chain wrote to their congressional delegation asking for support not only for the “traditional” aerospace contractors–namely the United Launch Alliance (ULA)–but also for the up-and-coming commercial space sector, including ULA’s chief competitor Space Exploration Technology Corp. (SpaceX).
The six companies, primarily from the Huntsville area, wrote to two senators and three congressmen “to encourage your support of expanding America’s industrial aerospace capability through competition, technology innovation, and new entrant companies who have chosen us as key suppliers for their innovative products.”
Though the letter does not mention SpaceX by name, it is the key new entrant that many members of Congress have scrutinized as it attempts to enter the government space launch market.
“These companies–though they may not be based in Alabama–draw many millions of dollars each year to the Decatur and Huntsville areas. Because of it, we and other suppliers are able to maintain existing and create new high-skill, high-paying jobs right here,” according to the letter signed by representatives of Industrial Manufacturing Specialties, Inc.; Cimarron Composites, Inc.; Medtherm Corporation; Plasma Processes; B&B Precision Machine; and Apex Design Technology of Alabama, Inc. “We hope you agree with us that competition and a broader overall set of industry players increase our business, as our products see a wider set of buyers. In this atmosphere of a shrinking federal budget and the threat of other states trying to draw work away from Alabama, the commercial space industry and its global customer base presents an enormous growth opportunity for the region–one we are fully embracing.”
For Pete Willis, the vice president of Industrial Manufacturing Specialties, the commercial space sector has allowed his company to expand its staff by 50 percent over the past year and a half–and those new jobs were not administrative positions to help with logistics or financials, he said, but rather skilled machinists, a point of pride for him.
Willis said he hopes to see more government support of commercial space launch companies because “if it continues to grow like it’s projected in the next year to year and a half we might be another 50 percent up.”
Willis said that in Alabama most suppliers benefit from work with NASA and the Air Force, but many also want to work with commercial space companies. The main point of this congressional outreach effort for him is to convey that the situation is “not an us versus them.”
“We believe that the commercial industry is here to stay. And it’s going to work hand-in-hand with the government, with the traditional NASA, ULA approach,” Willis said.
He said he understands lawmakers from Alabama want to preserve jobs in their state and therefore are wary of outside companies, including California-based SpaceX, but “it’s not that we’re losing work just because the commercial companies are headquarters out of state.”
Rather, he said, the future of his business depends on income from both government and commercial contracts–his company does separate work for each in separate manufacturing lines to avoid any conflicts of interest–but lawmakers overly skeptical of new entrants to the market are actually making it harder for him to preserve or add skilled labor jobs.
Willis explained that every time new reporting requirements are added for new entrants, “they’re flowing down those requirements on to me and small businesses. So I don’t have the administrative staff available to keep up with the increased paperwork that adds no value to the part” he delivers to the prime contractor. To stay a part of the contract, he might need to hire two logisticians instead of three machinists, for example, which he feels makes his business and the supply chain less efficient.
For the lawmakers, though, there is a need to balance not just workforce needs but also the broader use of taxpayer funds. Torrie Miller, spokeswoman for Sen. Richard Shelby (R-Ala.), told Defense Daily that “Sen. Shelby has always been a strong advocate for the jobs that have flourished in Huntsville and Decatur around our nation’s space program. There is a long history of expertise, innovation, and quality of work in the aerospace industry in Alabama. Even today, the technical capabilities found in northern Alabama continually attract business from both NASA and commercial space companies. Sen. Shelby will continue to support NASA’s goals while also working to ensure greater accountability and budgetary transparency in its programs so that taxpayers are getting the best value for their dollar.”