Arlington, Va. – The U.S. space sector is expanding at unprecedented speed, but the supply chain supporting it is struggling to keep up. A new analysis released today by the Aerospace Industries Association (AIA) and PricewaterhouseCoopers (PwC) U.S. finds that the U.S. space industrial base has not kept pace with industry growth, posing risks to national security, civil, and commercial space programs — and lays out actionable policy recommendations to stabilize the space supply chain
The report, Strengthening America’s Space Supply Chain: Built for yesterday, igniting momentum for tomorrow, draws on extensive interviews with suppliers, program leaders, and industry experts, as well as government and economic data.
“The rapid expansion of the U.S. space industry has driven demand to historic highs, placing significant pressure on the supply chain that underpins U.S. leadership in space,” said Eric Fanning, AIA President and CEO. “Without deliberate steps to strengthen suppliers and modernize regulations, we risk turning today’s momentum into tomorrow’s bottlenecks. A resilient space supply chain is not optional — it’s a national imperative.”
“Demand growth across the U.S. space sector is outpacing supplier capacity,” said Doug Anderson, Partner, PwC’s Operations and Supply Chain Services practice. “Organizations that take a wait-and-see approach risk falling behind as constraints persist. Now is the time to reassess supply strategies, invest in scalable capacity, and build the operational resilience needed to compete in a rapidly expanding market.”
While launch activity and satellite production have grown dramatically — with more than 3,400 U.S. space objects launched in 2025 alone, nearly 10 times the volume in 2019 — the industrial capacity underpinning this growth has not kept pace.
Key findings of the report include:
- Demand is outpacing industry capacity across critical aspects of the space industrial base
- Critical component shortages are delaying major programs as space companies compete with larger sectors for the same limited supplies
- Legacy regulations and qualification requirements are driving up costs and slowing innovation, with limited access to certified testing facilities adding further delays
- The supplier base remains fragile, with many essential components supported by three or fewer qualified domestic suppliers and smaller firms struggling to meet regulatory and cybersecurity demands.
- Budget instability and inconsistent demand signals are discouraging private investment, limiting suppliers’ ability to expand capacity or modernize infrastructure.
The report provides a set of key recommendations to help build a stronger, more flexible, and mission-ready supply chain capable of meeting rising demand across all space sectors
Key recommendations include:
- Improve demand visibility and planning by aligning government and industry forecasts with validated industrial capacity to enable confident, long‑term investment.
- Relieve critical part‑level bottlenecks through priority ratings, dual sourcing, targeted incentives, and greater use of qualified commercial alternatives.
- Expand testing, qualification, and post‑processing capacity through in‑house investment, shared facilities, and sustained federal support for critical infrastructure.
- Reduce regulatory and compliance burdens with low‑cost financing, clearer cost separation, and risk‑based modernization of requirements.
- Strengthen coordination across the space enterprise to break reactive cycles, stabilize supplier networks, and enable scalable growth aligned with demand.
Read the full report here.
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