What’s Working: Colorado’s aerospace industry fears it may be losing ground

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Colorado’s aerospace and defense industry has soared above other states for years but it may be losing ground and risks poachers, especially from the southern Sun Belt states, according to a commissioned by the Colorado Chamber Foundation.

“Stakeholders believe that we remain a globally influential hub (but) also say the industry is being taken for granted and that the state is coasting on momentum,” Rachel Beck, executive director, said at an event Thursday to share findings with local aerospace executives from firms like Lockheed Martin and Northrop Grumman. “And they warn that the state’s historical advantages are dissipating and that our business climate is eroding.”

The report, conducted by consulting firm Economic Leadership in North Carolina, was similar to past Chamber reports intended to spotlight how state regulations and policies are negatively impacting the business community. But this was different from the Chamber relocation report in April that cited 98 companies that have left Colorado since 2019. It noted the aerospace industry still punches above its weight.

The goal is to keep what Colorado has and invest in it, Kat Saunders, a partner at Economic Leadership, said during the Chamber event.

“You’ve outpaced U.S. average growth over time in this industry,” Saunders said. “But I think what’s happened is that it’s starting to level off and the data is starting to show that. … The firms are still here but it’s the growth in jobs that is a little bit of a threat.”

According to the report, Colorado still ranks 13th nationwide for aerospace jobs, increasing 14.4% between 2020 and 2025. It also ranked 13th for average earnings for aerospace workers, at $161,397. Higher-paid jobs lift the economy because workers spend more, a reason why other states are paying attention.

Colorado also had the highest concentration among peer states for aerospace jobs. It’s even higher than Texas, which welcomed SpaceX headquarters in 2024 though reportedly not without some hiring challenges.

But Colorado’s 14.4% aerospace job growth landed the state in the bottom half of the nation, as the 26th fastest growth rate last year. South Carolina topped the list at 37.4%, according to data crunched by consultants at Economic Leadership in North Carolina.

Saunders suggested low-cost ways to support the industry. Some other states provide “a concierge approach” for permitting and licensing. Or they’ve reduced the number of steps in a process and offer “bucketing licenses” so fewer applications are needed. There could also be longer periods between renewals. The report is full of other suggestions for state and local governments to consider.

States sometimes offer financial incentives and tax credits, like California’s CalCompetes, which provided $80 million in income-tax credits between 2022 and 2024. Texas allocated $150 million to the Texas Space Commission to help provide grants to businesses, universities and nonprofits for space-related projects. North Carolina contributed to more than $100 million in incentives to get Centennial aircraft company Boom Supersonic to build a superfactory in Greensboro.

“This competitive set, particularly in the Sun Belt, is aggressive. The leadership is willing to sit at the table and work with industry to have a voice,” Saunders said. “It’s important to hug and hold those primes like crazy and hang on to them. This is a retention play. You are in a much better place than many other people. They’re already here. But it’s keeping them here and having them expand here.”

Debra Wilcox, who sits on the Colorado Space Business Roundtable, called the report “excellent” because “They’ve identified a lot of what we’ve been saying,” she said. “Other states are poaching our talent.”

Colorado still a U.S. aerospace leader

Aerospace has continued to be a top industry in Colorado with state incentives offered for relocation or expansion, according to data from the state Office of Economic Development and International Trade. Industry employment is up 24% in five years and there are more than 2,000 aerospace businesses with 56,000 employees, according to OEDIT.

Last month, Ursa Major opened a new rocket-motor manufacturing plant in Longmont. The Berthoud-based aerospace firm looked elsewhere but picked Colorado, which offered $35.3 million in tax credits if the company adds 1,850 jobs in the next eight years.

There’s also Denmark-based Multicut, which picked Loveland and will manufacture parts for the U.S. defense industry. Ohio-based SelectTech Services Corporation chose El Paso County for a facility to build air and ground systems for the U.S. military and other government clients. Raven Space Systems left Kansas City and moved its headquarters to Broomfield and has plans to add 392 new jobs.

The state has also had some major coups in the private aerospace industry. The Orion spacecraft that took four astronauts around the moon in April as part of the Artemis II mission was designed and built by Lockheed Martin Space Systems in Littleton.

Republican U.S. Rep. Jeff Crank, who shared federal insight at the event, said that Colorado may have lost U.S. Space Command, but almost half of the U.S. Space Force team, which trains space professionals for Space Command, is in Colorado and the federal government is “doubling the size of the Space Force budget and that will have a tremendous impact in and of itself in the state of Colorado.”

The loss of Space Command to Alabama is estimated to be 1,000 to 1,200 jobs, he said. “But the good news is there’s lots coming in that will replace that,” Crank said, pointing to the missile defense system known as the Golden Dome for America.

“I worked very hard with the Pentagon and with the Trump administration to make sure that we did get new missions coming here,” he said. “There’s a $250 million space operations center, which is in the president’s budget now, and we’ve got it in the House and Senate versions of NDAA (National Defense Authorization Act) that will bring about 2,500 civilian jobs, much more than we would love through the Space Command Relocation.”

The new center would be located at Schriever Space Force Base near Colorado Springs.

“Colorado stands at the forefront of the global aerospace and defense industry, with a density and talent pool that remains unmatched,” said Michelle Hadwiger, OEDIT’s director of the global business development division, in an email. “Our quality of life, exceptional talent, ability to attract and retain a highly skilled workforce, and full-spectrum aerospace ecosystem create a powerful competitive advantage.”

The Chamber report made sense to Beverly Berry, managing director for sales and recruiting at PDS, an aerospace recruiting firm in Centennial. She feels there’s a lot more activity elsewhere when it comes to aerospace jobs.

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However, she said, “Having said that, we’re super busy with our current clients here. And yes, the workforce, it’s here. It’s definitely here. But I think the aerospace industry has grown so much over the last few years, not just here. So now everybody’s competing for a certain amount of talent.”

Take the poll: Colorado’s business climate: good, bad, worse?

Many local business organizations feel excessive regulations and high costs are hampering growth in Colorado. Would incentives help? What do you think? Take the latest What’s Working poll to help us better understand what’s going on in Colorado.

➔ Here’s the poll >> cosun.co/WWbiz-climate

Sun economy stories you may have missed

➔ Judge tosses Telluride ski area owner’s lawsuit alleging coercion over failed sale. Chuck Horning claimed Telluride and Mountain Village leaders promised to end a patroller strike if he sold the ski area >> Read story

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Other working bits

➔ Downtown Denver visitors spent at least 18% more than a year-ago June. That’s a sales-tax nugget from Denver Mayor Mike Johnston’s . The city pulled out data just for 16th Street, revealing one-year sales tax gains of 9% in March, 12% in April, 15% in May and 18% in June. But keep in mind that until recently, the street had been under some form of construction since 2022. It finally reopened last October.

“An 18% increase in sales tax is significant momentum,” Johnston said in a news conference. “These numbers show that the strategy specifically focused around downtown are working and they’re driving the city’s economic momentum.”

A closer look at the city’s 2027 budget does appear hopeful that the momentum will continue. Sales tax revenue citywide is expected to grow 5%, a $32.5 million increase, so long as there’s a “de-escalation in the Iran conflict, continued economic resilience by consumers, further growth in the information sector tied to artificial intelligence investments, and wage growth that exceeds the rate of inflation.” >>

➔ Colorado job seekers overwhelm career expo sign-ups. Within days of announcing the Apprenticeship Colorado Career Expo for Sept. 29 in Fountain, organizers shut down sign-ups after receiving more than 1,000 registrations, according to a spokesperson for the state Department of Labor and Employment.

Unfortunately, there are no plans to allow for more folks to register due to capacity limits at the venue. A sign of the times? Perhaps. In April, a similar event in Denver attracted 500 attendees and representatives from 45 apprenticeship programs. (Here’s a list of who’s showing up for the Fountain event.)

But another event is planned for April 2027 on the Western Slope. Details are yet to be determined but for those interested, the labor department suggests subscribing to its newsletters or checking out the Apprenticeship Colorado website >> Details

• There is a virtual event on apprenticeships. It’s on Wednesday, Sept. 16, from 10 to 11 a.m. It’s aimed at companies and individuals who want to add their own program or help job seekers find an apprenticeship. >> Register

➔ Colorado Startup Week starts Tuesday. While the annual local entrepreneur event doesn’t quite last a week (it was also renamed last year from Denver Startup Week), dozens of free sessions are being hosted in the Denver area that provide tips, tools and networking opportunities for anyone with a good idea. It’s also free. >> Check it out

Got some economic news or business bits Coloradans should know? Tell us: cosun.co/heyww

The Colorado Sun celebrated eight years this week. Can you believe it? Thanks to everyone who has kept us going! ~tamara

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What’s Working is a Colorado Sun column about surviving in today’s economy. Email [email protected] with stories, tips or questions. Read the archive, ask a question at cosun.co/heyww and don’t miss the next one by signing up at coloradosun.com/getww.

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