We're In the Middle of a New Space Race: Apex CEO

Key Concepts

• Proliferated systems: Manufacturing and launching hundreds of satellites for constellations.
• Satellite platforms: Standardized base structures for satellites, manufactured at scale.
• Vertical integration: Bringing all aspects of manufacturing in-house to control supply chain and production speed.
• New space race: Competition between the US and its adversaries in space capabilities.
• Commercial constellations: Groups of satellites providing services like internet access (e.g., Starlink).
• COTS (Commercial Off-The-Shelf): Products readily available for purchase, as opposed to custom-built solutions.
• Government acquisition/procurement: The process by which the government purchases goods and services.

Factory Expansion and Production Scaling

Apex is using the $200 million funding round to expand its factory ("Factory One" in Los Angeles) to significantly increase satellite production. Before the funding, the factory produced about 12 satellites per month. Now, the production capacity has increased to approximately 80 satellites per month. The company aims to further scale manufacturing due to even higher demand.

Demand Drivers: Government vs. Commercial

The demand for satellite platforms is coming from both government and commercial sectors.

• Government: Initiatives like "Golden Dome" and other US defense programs are driving demand for increased space capabilities. The speaker emphasizes the "new space race" between the US and its adversaries, stating that the US needs to increase manufacturing to maintain its position.
• Commercial: Companies like SpaceX (Starlink) have pioneered commercial constellations. Other companies are following suit, driven by consumer electronics applications like satellite connectivity in new Apple products (iPhones and Apple Watches).

"Made in the USA" and Supply Chain Control

Apex emphasizes its "Proudly Made in the USA" approach. The company conducted an assessment after the piracy issue came out and found minimal impact. This is because Apex primarily uses US components and vertically integrates almost all manufacturing processes in-house. This vertical integration allows Apex to control its supply chain, ensure rapid production, and maintain control over its destiny.

Talent Acquisition and Aerospace Hub

Los Angeles is considered an aerospace capital, with companies like SpaceX, Rocket Lab, and the Jet Propulsion Laboratory located nearby. This provides Apex with access to a pool of talent. However, the company is actively hiring dozens, soon to be hundreds, of roles and notes a shortage of individuals with the required skill sets. Apex hopes increased attention on aerospace will encourage more students to pursue related fields.

Government Acquisition Reform

The speaker was asked what one thing they would ask of the US government. The response was to rethink the acquisition process.

• Current Process: The government typically defines a specific capability need and then pays contractors to build custom solutions. This process can take years.
• Apex's Approach: Apex uses investor capital to proactively build satellite platforms before the government expresses a specific need. This allows them to supply solutions in days, weeks, or months, at a lower cost to taxpayers.
• Call to Action: The speaker urges the US government to focus on purchasing commercially available off-the-shelf (COTS) products, like those produced by Apex, instead of constantly reinventing the wheel with custom solutions.

Conclusion

Apex is scaling its satellite manufacturing capabilities to meet growing demand from both government and commercial sectors. The company's focus on vertical integration and US-based components allows it to control its supply chain and rapidly produce satellite platforms. The speaker advocates for government acquisition reform, urging a shift towards purchasing commercially available products to accelerate deployment and reduce costs.