Global consulting groups can't be left out of the growing space industry.
Deloitte, one of the Big 4, formalized its space consulting service this week, while other consulting giants such as McKinsey BCG, and Bain are competing for a piece of the pie.
I spoke with Brett Loubert of Deloitte Consulting, principal and leader for the government and public sector's efforts in the new space group, to find out more about the way consulting firms think through the sector opportunities.
Loubert noted that space is "increasingly significant" for companies and governments whether or not they are operating in this domain. There's also a "general enthusiasm it generates, both internally and externally." He noted that Deloitte Space was founded over 15 years ago, but its formalization is the culmination after five years of pushing into space to "bring together the full range of our capabilities."
Loubert divides the space consulting opportunities into two categories: Space as mission or business and Space as growth opportunity. The first represents clients who design and launch systems into space, or whose primary product or services are space-based or have a business unit dedicated to space. However, the latter has perhaps the most lucrative potential.
Loubert explained that "that second group, and the framing, is a way we are getting excited both internally and outside, about not only how our industry looks today but also what it is enabling in almost every other sector that we work in."
He said that his job involves "demystifying" the concept of "space", and he believes there is more to be done to improve the way the space industry markets its products and services.
Loubert said that the space industry is like any other, with its "ups" and "downs". The biggest difference is that the private sector now drives much of the space industry's innovation and growth, whereas historically, it was the government.
Loubert said that general estimates of the space economy reaching $1 trillion by 2040 were "conservative", since this represents a growth rate compounded annually of only 5% to 6.0%.
He said that you are seeing more and more companies "closing the deal".
Loubert explained, "I believe what you are seeing is that a lot of business cases in the space industry are closing down or can be projected to shut down."
On April 18, I will be in Colorado with McKinsey's Senior Partner Ryan Brukardt to discuss consulting and space. We'll see you there!
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