L. A. SECTION ENTERPRISE CHAPTER
SURVIVAL AND GROWTH IN A SHRINKING MARKET
WHEN PARTNERING IS BETTER THAN MERGING
The keys to survival in a shrinking launch vehicle market are a core of experienced people able to handle a variety of assignments, a stable of products adaptable to numerous programs, and a low cost organizational and operational business structure.
Karl Schab, Manager of Launch Services for Space Vector Corporation, emphasized these points in his presentation to the Enterprise Chapter at the AIAA L. A. Section Offices on July 18, 2006. Founded in 1969, Space Vector is now a wholly-owned subsidiary of Pemco Aviation Group. Headquartered in Chatsworth CA, the company offers launch systems, launch system components, and launch services to government, scientific, and commercial customers. So far Space Vector has served as prime contractor for 37 launches and has supported over 300 launches as a major subsystem supplier.
As the new millennium began, the launch vehicle began to dry up and primes pulled in-house work that subcontractors had been doing. Space Vector had certain key assets enabling it to survive. It had a unique expertise in launches utilizing surplus Minuteman motors; e.g. Aries, Conestoga, the HOE and Hera targets for THAAD, and AltAir, an air-dropped missile. These launches utilized various platforms in different sites around the world. The skilled engineering staff offered primes one-stop shopping for system design, assembly and integration, and testing.
In addition to system level expertise, Space Vector has built a reputation in the design and manufacture of a variety of components such as guidance and control avionics, retro motors and thruster valves, telemetry, actuators, separation and flight termination systems. It also fabricates and assembles structures such as nose fairings, adapters, and skirt/fin assemblies. The company also manufactures ASE and GSE such as booster erectors, slings, and air-launch booster extraction equipment.
The Space Vector expertise includes the software as well as the hardware associated with these subsystems. This software is sometimes unique enough to discourage a prime from attempting to develop and duplicate the software in-house, thus enabling Space Vector to lock in some business that it otherwise might not have won.
Space Vector places great emphasis on selecting people who are familiar with multiple engineering disciplines and are comfortable with multi-tasking. This flexibility in task assignments leads to lower cost operations. Most of their staff are involved in business development and, in interfaces with customers, are quite articulate about what they do. They have built important relationships with primes and enjoy a long-standing relationship with the Air Force based on their extensive work with surplus boosters.
With such a work force, partnering with other companies is probably better than merging. Merging might eviscerate the multi-tasking capabilities of the company and narrow the available market opportunities.
Space Vector has grown rapidly since 2003 and is now heavily involved in the DARPA Falcon program, using an air-dropped small launch vehicle, which must satisfy more difficult requirements than those of a ground launch. Karl Schab anticipates more ballistic missile defense work following the North Korean July 4 launches.
Guido Frassinelli