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The U.S. economy is in the midst of the worst financial crisis since the Great Depression. How has this affected your business plans for 2009? Bohane: RADARSAT-2 is hitting its stride in terms of reliability, and operationally we're seeing our U.S. business in a growth mode. Demand from the U.S. government is strong, and we've recently completed an extensive RADARSAT-2 test contract for the U.S. government. We don't see the downturn in the U.S. economy affecting us in 2009. Copple: Most business plans approach the year with caution. Equipment spending is conservative, and there's concern about government and commercial budgets. I think we'll see most companies start out conservatively regarding spending and new employment. Demargne: There's no doubt that the current economic crisis will greatly affect our customer base, particularly within state and local governments. Shrinking budgets will require government agencies to do more with less. For our profession, this translates to a need for more cost effective geospatial solutions that support a greater number of end-user applications. To meet this challenge in 2009 and 2010, Fugro EarthData will focus on developing and investing in new technologies. We're also renewing our outreach efforts to help customers educate their stakeholders and constituents about the role geospatial services play in government programs. A recent ROI study from the state of Indiana predicted a positive return on its statewide mapping program within just four years or less of the investment. Reduced duplication of effort, more efficient processes and more accurate decision making are just some of the ways the data are improving state operations. This is the sort of message we need to continue to communicate to end users—even more so in these uncertain economic times. Johnson: Global Marketing Insights provides global geospatial sales and marketing services and geospatial market research. We know for a fact that those with cash are interested in buying companies, so our focus for 2009 is to provide the market information needed to assist those buyers. This isn't the Great Depression. The Great Depression had a lot to do with an inability by Germany to pay back war debt to Great Britain, which caused immense problems with gold reserves, and the United States' oversized factory inventory, as well as a subsequent stock market crash and nowhere to send product to and get paid. Today's situation is more like the panic of 1873, when the credit center of the world shifted from Europe to the United States. Today, it appears the United States has done what Prussia, France and Germany did in the 1870s, when mortgages were easy to obtain with almost no capital assets for backing the loans. (Haven't you ever wondered how those beautiful, ornate structures were built in Vienna and Paris?) Economics (i.e., credit capabilities) are shifting again from the United States to emerging markets, such as China and India. From an innovative technology perspective, however, the United States is still strong. Those who have cash in the remote sensing industry will buy their competitors—similar to what Carnegie and Rockefeller did during the panic of 1873, when they had enough capital to finance their own growth. Limp: The downturn in the economy has affected higher education in complex ways; there are national trends as well as those that vary dramatically from state to state. From the perspective of research funding, those of us at the University of Arkansas Center for Advanced Spatial Technologies haven't seen any reduction in national research funding opportunities—at least not yet. In fact, opportunities in geomatics funding generally are growing as geomatic elements increasingly are becoming part of many research programs—programs where this wasn't true a few years ago. From an educational perspective, our state has been one of those that, so far, has been immune from today's massive budget shortfalls. In fact, the state continues to have a modest surplus. We're seeing a slight increase in interest and enrollments as students are either continuing their education or returning to improve their credentials. We're even starting a new program: a bachelor's degree in Computer Science with an emphasis in geoinformatics. We anticipate the program will be well received by students interested in combining these skill sets. Wilt: We're mindful of the economic climate, as are most companies during this time. But I believe our long-term goal of providing the best quality imagery and converting it into useful geospatial information to help our customers solve challenging problems will go a long way in supporting our 2009 business plan. Also, in December 2008, GeoEye signed a far-reaching Service Level Agreement with the National Geospatial-Intelligence Agency (NGA) that provides us a predictable revenue stream of $12.5 million per month. In return, NGA receives a steady stream of imagery from IKONOS and GeoEye-1. Although there may have been more opportunities in a more robust economy, I believe that our partnerships with resellers in the United States and abroad—particularly in the energy and on-line mapping sectors—will continue to be solid in 2009. Finally, as we solidify our relationships with commercial and government Regional Affiliates overseas, we can expect a revenue stream that is independent of global economic pressures. How has the recent economic downturn affected the remote sensing industry as a whole, both domestically and globally? Bohane: At present we aren't seeing much effect of the whole economic downturn. In fact, the Earth-observation sector seems to be an area in which most governments have decided to invest in to stimulate their economies. For example, in Canada, MacDonald, Dettwiler and Associates recently won the next phase of the RADARSAT constellation (a follow-on contract to RADARSAT-2). In Europe, the recent European Space Agency (ESA) ministerial meeting provided over-subscribed funds to ESA and confirmed the completion of the second series of [Global Monitoring for Environment and Security] satellites and all the associated contracts for projects and data supply. Copple: Most of the impact is just starting to occur. The slowdown is starting to impact government budgets and planned programs. Although defense spending continues to be strong in the short term, this could change with the change in administration. International programs are still moving forward slowly as newer mapping technology is adopted. Security will continue to drive some expenditure in the market, as well as a continued focus on the environment. Although there's still significant growing demand for geospatial products in many new areas, the economic returns aren't yet clear enough to justify some of the proposed ventures. Demargne: Although we don't yet know the full impact of the global recession on the remote sensing business, a natural reaction is to restrict spending to mitigate budget shortfalls. However, geospatial data have become so ingrained in so many sectors of the economy that the impact may not be as hard on our profession as it might have been a decade ago. For example, more than ever, we need satellites to monitor our environment and detailed and current infrastructure data to respond to disasters. The United States has a long history of building itself out of an economic crisis. Recent reports of a government stimulus package to fund infrastructure projects and boost employment is a textbook example of this concept. Directly or indirectly, such a move would help create jobs in the surveying and mapping profession. On the international front, governments throughout the world have become much more aware of the benefits of implementing a national geospatial data infrastructure for improved governance and are investing more and more in such programs. Thanks to Fugro's presence in more than 50 countries, we have been able to better understand and serve these geospatial needs to gradually expand our international business. Johnson: The global remote sensing industry's health is still tied largely to government investment. Domestically we still haven't seen the real impact of the slow down. It is the slow season in the aerial industry and leaf-off season in the satellite industry, but we do know that many contracts aren't being renewed in a timely manner. Globally we know that several large remote sensing projects are on hold, and the financing isn't available from those governments to their prime contractors. The remote sensing contract award slow down will hit harder domestically during the first quarter of 2009 as the U.S. defense and intelligence community and the U.S. federal civilian agencies struggle to maintain their budgets during the Obama administration's transition period. Limp: It is important to divide the remote sensing industry into segments and recognize that these different segments may have different cyclical or counter-cyclical economic structures. Some segments are global, as firms launch and support Earth-observation satellites and related programs. There is a different, somewhat overlapping tier that supports national mapping, federal agencies and the geointelligence community. A third group applies remote sensing to local and smaller-area projects. Finally, there are the software and hardware manufacturers and vendors that provide products and services to all these segments. The key to the immediate future of the industry in the United States seems to me to be the structure of the new stimulus program. If the anticipated stimulus program discussed by the Obama administration becomes a reality, this will provide important support to the state and local groups. Added interest in Earth mapping, if it materializes, will affect the upper two tiers. Nonetheless, I think we can expect continuing consolidation during this period and a loss of the firms that have limited access to capital to tide them through. Wilt: It's difficult to know what might have been were the economy more robust, but having national governments and companies like Google and Telespazio as key customers provides us greater market resilience. GeoEye maintains long-term contracts and relationships with businesses and organizations that have a long history of expertise in the geospatial world and have extensive domain experience in a variety of disciplines. Additionally, the company has built market stability through expanded service and product offerings. Our vision of moving up the value chain from being a wholesale pixel provider is coming to fruition. A summary of President-elect Obama's space policy includes the category "Enhancing Earth Mapping," under which he states he will "… continue support for the Landsat Data Continuity Mission." Obama also favors re-establishing a White House space council, which last convened under the first President Bush. How can the new administration best ensure that the U.S. government and the private sector are prepared to fully leverage the cost savings and efficiencies provided by the remote sensing industry's products and services? Bohane: We expect the incoming administration to look to the private sector for solutions when it comes to meeting the U.S. government's remote sensing needs. Building on the previous administration's policy to purchase private-sector services where they're available, we're looking for the United States to actively use RADARSAT-2 and other existing commercial satellites to fulfill their nonclassified data needs. Copple: There are several established groups that provide information and interaction with the administration, such as the National Oceanic and Atmospheric Administration (NOAA) Advisory Committee on Commercial Remote Sensing (ACCRES). Established in 2002, ACCRES provides information, advice, and recommendations to the Under Secretary of Commerce for Oceans and Atmosphere on matters relating to the U.S. satellite commercial remote sensing industry and NOAA's activities to carry out the responsibilities of the U.S. Department of Commerce set forth in the Land Remote Sensing Policy Act of 1992 (15 U.S.C. Secs. 5621-5625). Also, there's the National Environmental Satellite Data and Information Service (NESDIS), the U.S. Geological Survey Inter-Agency Digital Working Group, the Joint Agency Commercial Imagery Evaluation (JACIE), the Federal Geographic Data Committee (FGDC) and others. Efforts between these groups need to be coordinated and represented as part of a White House space council if it is formed. Alternately, the Office of Science and Technology Policy (OSTP) could represent the remote sensing industry. OSTP's continuing mission, as set out in the National Science and Technology Policy, Organization, and Priorities Act of 1976 (Public Law 94-282), calls for OSTP to serve as a source of scientific and technological analysis and judgment for the president with respect to major policies, plans and programs of the federal government. A coordinator from OSTP participating in the interagency groups could provide direct input to the Office of the President regarding major initiatives in remote sensing and their importance to the country. Demargne: All indicators are that the Obama administration will be receptive to the benefits of geospatial technology. The fact that the new administration is already promoting remote sensing and mapping is good news for our profession. It will also be essential for the new administration and the geospatial community to promote the "map once, use many times" concept. The more data are used, the greater the return on investment for taxpayers. Take the Landsat Data Continuity Mission as an example; although the program focuses on global change monitoring, Landsat data serve many purposes, from agriculture to economic development. State and federal agencies are starting to embrace this concept on an operational level, unifying project requirements to capitalize on synergies derived from combined buying. This idea also can be applied to new technology development and is one reason a reinstated space council is so promising. As a company, Fugro knows first hand the potential for space-related technology transfer. The IfSAR technology used by our GeoSAR radar mapping system was originally developed by NASA. Through a public/private partnership, Fugro helped adapt GeoSAR for commercial airborne operations. Johnson: The Obama administration must deliver a strong and clear message about the focus of the U.S. government to stimulate this country's economic situation. The remote sensing industry is already focused and developing revolutionary products where it appears that focus needs to be—energy, food and water. Then the key question will be: Can the Obama administration create a system in which U.S. government agencies can quickly and efficiently provide contracts to take advantage of these products? Supporting missions that are still three to fours years away isn't wrong, but such efforts won't economically hold up the remote sensing industry today; specific projects focused on energy, food and water will. Limp: Continuing the Landsat "data stream" is essential, as it is the only data source available for relatively long-term global studies. Although the higher resolution sensors are extremely valuable, they can't replace Landsat's comparative data. It is also essential for the federal government to expand support for continuing university research and education if the community is to have a next generation of practitioners. Modest investments here will reap great dividends. Research will take increasingly new directions that closely link with cyberinfrastructure research. Continuing research support for projects that develop information products from fusing a broad range of sensors, such as the Defense Advanced Research Projects Agency (DARPA) URGENT effort, will help the community move from delivering data to delivering information. As the DARPA project illustrates, however, much of the past administration's research funding has been directed to the private sector, and university research has diminished. Although private-sector research is essential, it is critical to recognize that university research provides rapid public access to results and, more importantly, supports the training of the next generation of employees who will fuel future companies. Wilt: We've spoken with members of Obama's transition team, and they've given us the impression that there is support for the commercial Earth-observation sector and our industry as a whole. We look forward to continuing the dialogue at all levels as the new administration settles in. We also believe there is a natural symbiotic relationship between the government and private remote sensing industry. For example, as we begin to improve our infrastructure, there will be a need to map and monitor changes on the ground. The American Society of Civil Engineers estimates that $1.6 trillion are needed to bring the U.S. infrastructure up to "good" by 2010. An Urban Land institute report, called "Infrastructure 2007: A Global Perspective," says the failure to address an emerging crisis in mobility in the United States will undermine the ability of the country to compete internationally. In 1956, President Eisenhower established the Federal Aid Highway Act, which committed the government to invest heavily in a national network of interstates in part to assist in moving equipment and troops if there was conflict with the then Soviet Union. That 46,876-mile road network forever changed the way we move around the nation. Finally, another opportunity may be in energy and carbon markets. Any "cap and trade" system that is legislated by Congress will require verification and monitoring. Land use and land planning are traditional uses of Earth-observation technologies and can be used in any new regime to manage the impact of climate change on Earth's surface.

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