The study showed California-based manufacturers of commercial telecommunications satellites lost out on $1.2 billion in contracts and over 1,000 jobs in 2000.

The report also showed that U.S. satellite manufacturers share of the global market for commercial satellites declined 30 percent in 2000 -- from a ten-year average of 75 percent down to just 45 percent in 2000.

California manufacturers of commercial geostationary satellites announced only 13 new orders in 2000 compared to the 16 orders booked by European competitors in the same 12-month period.

Tougher Federal export controls and increased competition from European competitors were cited as the major factors contributing to the decline in U.S. manufacturers market share last year. Licensing authority over commercial satellite exports was shifted to the U.S. Department of State on March 15, 1999.

The study indicates that U.S. companies failed to capture at least half of the publicly announced orders for commercial telecommunications satellites since the shift in export control authority took place.

California satellite manufacturers reported that they are spending 400 to 500 percent more time and resources to comply with State Department export control procedures.

The seven-month study was conducted by SIA and Futron Corporation under a grant from the California Trade and Commerce Agency (CTCA). The grant team surveyed and interviewed major California satellite manufacturers and subcontractors to learn whether U.S. export controls were having an impact on the industry's ability to compete in the international market for commercial telecommunications satellites.

The State of California is home to the four largest U.S. manufacturers of commercial satellites as well as to many of America's leading satellite parts and components suppliers.

Over 25,000 skilled workers, engineers and executives are employed by commercial satellite manufacturers in California. A preliminary report outlining the revenue and job loss findings was provided to CTCA officials in Sacramento, California in December 2000.

Representatives from SIA and Futron Corporation, along with grant team participants from the California Space and Technology Alliance (CSTA), briefed Members of Congress and staff from the California Congressional delegation today on Capitol Hill. The briefing was co-hosted by Congressman Christopher Cox (R), Congresswoman Lucille Roybal-Allard (D), Congressman Dana Rohrabacher (R), and Congresswoman Ellen Tauscher (D).

At the briefing, SIA Executive Director Clayton Mowry said: "The study results show that the U.S. commercial satellite manufacturing industry is in serious danger of losing its leadership position in the global marketplace.

For nearly four decades, American companies have dominated this high-tech sector, building three quarters of the world's commercial telecommunications satellites in orbit."

Mowry added: "While it is impossible to attribute all of the lost revenue and market share to new export controls, the regulations are clearly having an negative impact on the ability of America's commercial satellite companies to compete.

"The Congress and the Bush Administration should carefully review the results of this study, and then take swift action to ensure that exports of commercial satellite technology are not hamstrung by unnecessary Federal regulations.

"Nothing less than our national security is at stake as the Pentagon is increasingly reliant on U.S. commercial satellites for its global communications needs," said Mowry.

The Satellite Industry Association (SIA) represents the leading U.S. space and communications companies in the commercial satellite arena. SIA's executive and affiliate member companies are engaged in satellite manufacturing, ground equipment manufacturing, satellite services, launch services and support services.

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