Boeing subsidiary Millennium Space Systems is dramatically increasing its satellite manufacturing capacity. CEO Tony Gingiss explains, “We’re at an inflection point where we have to prove we can deliver these missions at rate.” The company plans to boost production from one or two satellites per month to six to 12. This represents a major expansion for an industry traditionally characterized by slow, low-volume output.
Based in El Segundo, California, Millennium Space employs approximately 1,000 people and is expanding its production area from 22,000 square feet to almost 42,000 square feet. This growth signifies a shift from a niche builder to a high-volume production facility. Millennium’s expansion is fueled exclusively by military programs; it currently lacks commercial operations, though a small portion of its work involves civil space projects, such as two recently delivered spacecraft for a NASA mission focusing on space weather.
A key driver of this expansion is a $414 million contract to build and operate eight missile-tracking satellites, known as “Foo Fighter,” equipped with advanced infrared sensors. A new facility dedicated to this project is under construction within Boeing’s satellite campus. Furthermore, Millennium is working on a nearly billion-dollar order for 12 missile-tracking satellites for the U.S. Space Force, operating in medium Earth orbit (MEO). Additional contracts involve classified satellites.
Gingiss, an experienced aerospace executive, joined Millennium at a critical juncture for satellite manufacturing. He states, “The environment has changed…It’s no longer good enough to be fast or cheap or good — you’re expected to be all three.” This contrasts with the 1990s NASA motto of “faster, better, cheaper,” where, as Gingiss notes, “you could pick two.” Current geopolitical tensions and the rising demand for satellite capabilities necessitate excellence in all aspects.
Gingiss has overseen supply chain process improvements. While the most significant pandemic-related shortages have eased, new challenges, primarily in advanced electronics and space-grade materials, have emerged. These challenges coincide with escalating global trade tensions. Despite these headwinds, Gingiss sees progress in the space industry’s ability to utilize commercial technologies from diverse sectors.
Gingiss highlights the advantages and disadvantages of this approach: “The beauty of sharing parts with other industries is that they’re more widely available. You can typically get a better price on them. But the downside of it can be if there’s high demand in other industries that maybe have larger profit margins, you may be competing against limited supply.” To manage this, Millennium prioritizes using common components across its satellite programs.