Measuring Space Manufacturing Plant Utilization and Own-Account Production

NASA’s Michoud Assembly Facility move the intertank of NASA’s Space Launch System. Credit: NASA

Authors: Tina Highfill and Akhil Rao

Publisher: United States Bureau of Economic Analysis (BEA)

Publication Date: April, 2025

Link: https://www.bea.gov/research/papers/2025/measuring-space-manufacturing-plant-utilization-and-own-account-production 

This study addresses a gap in measuring the U.S. space manufacturing sector’s productive capacity and economic output. Current economic statistics do not measure how much of their maximum production capacity space-related manufacturing facilities actually use (“space economy manufacturing plant utilization”), and they do not account for manufacturing of satellites and space vehicles by companies providing these capital goods for themselves (“own-account production”). The paper introduces a manufacturing plant utilization index and proposes methods for measuring own-account production.

Findings

  • Utilization and real output patterns suggest demand-driven expansion of aggregate U.S. space-related manufacturing capacity over 2012-2021. U.S. space economy manufacturing plant utilization—the share of the nation’s capacity to manufacture space-related equipment that was actually utilized—averaged 72.1 percent over 2012–2015 but fell to 63.9 percent over 2016–2021. Analysis of non-public BEA data found that real (i.e., price- and quality-adjusted) space economy manufacturing output increased over the 2012-2021 period. This pattern of higher-than-average peak utilization followed by persistently lower average utilization while real output increased suggests demand for space-related equipment drove expansion of aggregate manufacturing capacity
  • COVID-19 impact varied sharply between manufacturing types. From 2019Q1 to 2020Q1, other transportation equipment (launch vehicles, spacecraft) manufacturing plant utilization declined by 31 percent while computer and electronics products (communications equipment) declined by only 10 percent. Computer and electronics plant utilization recovered to above its 2016–2019 average by 2020Q2, while transportation equipment plant utilization had not returned to pre-pandemic levels by 2021Q4. The differential likely reflects that circuit boards face demand from multiple sectors while aerospace-related transportation equipment serves narrower markets. Continued observation is needed to assess whether the differential is transitory or reflects permanent changes in the composition of the U.S. space economy’s manufacturing capacity.