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DENVER – The Colorado Chamber Foundation today released a new report examining the state’s aerospace and defense industry, highlighting Colorado’s powerful economic assets and detailing 18 recommendations to ensure the state remains competitive as the global space economy grows and other states invest aggressively in the sector.
The report finds that the industry supports more than 61,000 jobs and contributes over $14 billion to Colorado’s gross state product. In 2025, Colorado’s aerospace industry was 46% more concentrated than the national average and had the highest concentration among its peer states. Every job added in the industry supports more than two additional jobs elsewhere in the state economy.
“Colorado has built one of the most complete aerospace and defense ecosystems in the country, from research and startups to major contractors, manufacturers, military missions and satellite operations,” said Rachel Beck, executive director of the Colorado Chamber Foundation. “While this foundation gives us an extraordinary opportunity as the global space economy expands, that leadership cannot be taken for granted. Colorado must make a proactive commitment to this industry and act now to compete for the companies, talent and investment that will shape its future.”
Commissioned by the Colorado Chamber Foundation and prepared by Economic Leadership, the report incorporates input from more than 50 aerospace and defense leaders, small business owners and economic development professionals. It also benchmarks Colorado against leading competitor states and identifies strategies and policies already being used elsewhere to attract companies, workers and capital.
The Denver metro area accounts for 60% of Colorado’s aerospace employment, with approximately 36,750 jobs, followed by Boulder with 15% and Colorado Springs with 11%. These regional hubs offer complementary strengths to the state’s sector ecosystem, including research and satellite operations in Boulder, a significant share of national security and military missions in Colorado Springs, and a diverse mix of companies, talent and support services across metro Denver.
Key data points that highlight the strength of Colorado’s aerospace industry include:
- Colorado’s aerospace and defense employment grew 14.4% from 2020 to 2025, a higher rate than the national average.
- Aerospace and defense, along with the jobs it supports, represents 6% of Colorado’s GDP.
- The sector added 9,334 net jobs from 2019 to 2025, making it Colorado’s fourth-fastest growing industry. Support services account for more than half of industry employment.
- Aerospace workers earned an average of $179,500 in 2025, nearly twice the statewide average.
- Colorado is ranked a top state in support services (1st) and satellite operations (2nd) job concentration, innovation funding (3rd), venture capital (6th) and aerospace education (8th).
- The state ranks third nationally in federal Small Business Innovation Research and Small Business Technology Transfer funding relative to the size of its economy. About 69% of those awards came from military agencies or NASA, reflecting Colorado’s deep aerospace and defense research base.
The report divides the industry into four subsectors: satellite operations, research and development (R&D), core manufacturing and support services. Aerospace-related R&D employment increased more than 23% over five years, and Colorado remains a national leader in satellite operations and support services. Core manufacturing, however, has recently lost momentum, underscoring the need to strengthen the state’s production capacity and supplier base.
Colorado’s broader business climate contributes to challenges for the aerospace and defense industry, including rising housing and operating costs, regulatory burdens and a cost of living that makes it harder to attract and retain skilled workers. Through Vision 2033, the Colorado Chamber is focused on improving the state’s overall competitiveness and strengthening high-performing industries, like aerospace and defense, that drive innovation, create well-paying jobs and support economic growth across the state.
The report also identified the core asset and strategic strengths of Colorado’s long-term aerospace and defense potential, including its rare end-to-end ecosystem, concentration of national security missions and federal facilities, highly skilled workforce, leading universities and collaborative industry culture. The industry’s scale and strong base of federal investment provide significant momentum as commercial space and national security activity expand, positioning Colorado to capture the next wave of companies, contracts and high-paying jobs, provided the state acts deliberately to strengthen its advantages and compete for that growth.
The report’s 18 recommendations are organized around four priorities:
- Reinforce Colorado’s commitment to aerospace and defense through stronger branding, gubernatorial engagement, coordinated statewide leadership and region-specific strategies.
- Make it easier to do business by streamlining permitting, testing regulatory sandboxes, developing move-in-ready manufacturing sites and expanding access to shared facilities and industry hubs.
- Improve Colorado’s competitiveness for attraction and investment by strengthening incentives, supporting existing companies, building regional coalitions and considering a targeted industry tax credit.
- Build, attract and retain talent by expanding apprenticeships and dual enrollment, strengthening community college partnerships, addressing housing affordability and preparing for growing national security workforce needs.
To view The Colorado Aerospace and Defense Industry: Competitive Assessment and Strategic Recommendations, please visit https://cochamber.com/wp-content/uploads/2026-Colorado-Aerospace-and-Defense-Competitive-Report.pdf.
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The Colorado Chamber Foundation is a non-profit educational foundation whose purpose is to support programs, research, educational opportunities and other initiatives that encourage and enhance a healthy business climate. The organization works collaboratively in partnership with state business leaders to advance Colorado’s economy and local communities through forward-thinking solutions.