Colorado aerospace growth starts to slow
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Colorado's aerospace industry is flying high — but other states are increasingly trying to muscle into its airspace.
Why it matters: Aerospace is an economic powerhouse in Colorado — contributing more than $14 billion to the state's economy and supporting more than 61,000 jobs that paid an average of $179,500 in 2025.
- That's nearly twice the statewide average.
State of play: A Colorado Chamber Foundation report recently found the state's aerospace and defense workforce grew 14.4% between 2020 and 2025.
- Colorado's 61,072 aerospace jobs ranked 13th nationally in 2025, while the industry's concentration here was 46% higher than the national average.
- Each aerospace job supports more than two additional jobs elsewhere in Colorado's economy, the report found.
Yes, but: Colorado's growth is showing signs of slowing as Texas, Florida, North Carolina, Utah and Ohio make increasingly aggressive plays for aerospace companies and investment.
- Core aerospace manufacturing employment fell 4.3% from 2024 to 2025, putting Colorado 43rd nationally for growth.
- Colorado also ranks 38th for cost of doing business and 40th for housing affordability — headwinds for recruiting and retaining workers.
- And already, the state is using incentives to compete, including up to $11.2 million in performance-based tax credits to a mystery aerospace and defense company that's eyeing Broomfield for a project that could create up to 600 jobs.
Zoom in: Boulder Valley is one of the industry's biggest hubs, accounting for roughly 9,250 aerospace jobs — 15% of the statewide total and second only to metro Denver.
- Boulder County leads Colorado in aerospace-related R&D employment, with an estimated 3,290 jobs, and satellite operations, with about 520.
- It counts another 3,010 core manufacturing jobs and 2,430 support-service jobs.
CU Boulder helps feed that cluster through research and its workforce, with the Chamber calling the university one of Colorado's "premier engines for aerospace engineering and STEM talent."
- CU's Laboratory for Atmospheric and Space Physics employs nearly 600 people, while roughly 150 students work there gaining hands-on experience with NASA missions, spacecraft instruments and scientific research.
Zoom out: Colorado's aerospace sector is also facing uncertainty from Washington.
- President Trump announced last year that U.S. Space Command would move from Colorado Springs to Huntsville, Alabama — shifting a headquarters estimated to have a $1 billion economic impact and roughly 1,400 jobs.
- Meanwhile, CU expects federal funding cuts and canceled research awards to reduce research spending by $60.4 million on its flagship campus this fiscal year.
The other side: Increased federal defense spending could benefit Colorado's commercial aerospace companies, particularly contractors competing for work tied to the Trump administration's Golden Dome missile defense initiative.
What's next: The chamber report outlines 18 recommendations, including creating a stronger statewide aerospace brand, speeding up permitting, developing move-in-ready manufacturing sites, expanding incentives and considering an aerospace-specific tax credit.
- It also calls for expanding apprenticeships and community college partnerships and addressing housing affordability in major aerospace employment hubs.