San Marcos is making a significant play for the aerospace and defense industries with the purchase of nearly 200 acres from the U.S. Department of Labor to extend the runway at San Marcos Regional Airport. The move, discussed by economic development director Helen Ramirez on The Building Texas Show, is part of a broader strategy to position the city as a hub for aerospace intelligence and advanced manufacturing, rather than rocket launches.
Ramirez emphasized that San Marcos is not chasing a spaceport but rather the ecosystem that supports aerospace and defense. “We are looking at that future of space. It is not necessarily launching rockets,” she said. “You can have it in Starbase, SpaceX, but that's not what we're looking for. But we can be part of the intelligence of creating that ecosystem.” Her reference point is Hawthorne, California, home to Raytheon, Boeing, and Northrop Grumman—the side of aerospace she believes Central Texas can emulate.
The runway extension, funded by FAA and Texas Aviation grants, is critical for attracting larger aerospace companies. The airport already hosts more than 18 tenants, including Berry Aviation, now owned by publicly traded Bristow Group (NYSE: VTOL). The expansion will allow larger aircraft to operate, enhancing the region's logistical capabilities.
Adjacent to the airport, the 2,000-acre TriTexas mega site is ready for development with regional detention and utilities already built, even before a single tenant has signed. This rail-served site is primed for manufacturing and distribution, offering a turnkey solution for companies looking to relocate or expand.
Star Park, Texas State University's incubator, is home to the Innovation Corridor Defense Accelerator, run in partnership with Starburst Aerospace and the Hays Caldwell Economic Development Partnership. This accelerator fosters startups and research in defense and aerospace technologies, further strengthening the local ecosystem.
The city's efforts are already yielding results. A survey conducted by Ramirez's office of 98 companies found that over 90% reported stable or growing business, with about 40% actively expanding. Epic Piping is adding 100 employees, Amazon continues to grow, and Collins Aerospace reported better business conditions in San Marcos than in California. Nabaco, a Texas State spinout that went through a Rice University accelerator, now operates in Spain but still hires Texas State grad students. US Aviation trains active-duty Air Force cadets at the airport, and Texas State is adding a hospitality program tied to a new 130-key boutique hotel downtown.
The downtown hotel project, on land donated by Texas State, includes a minimum-wage requirement tied to inflation in its incentive deal, reflecting the city's commitment to responsible development. Ramirez's staff has direct access to the city's permitting software, allowing real-time answers for businesses like Texas Building Supply, which is on track for roughly $40 million a year in sales tax once fully ramped—with no incentive package attached.
This comprehensive approach—combining infrastructure investment, educational partnerships, and business-friendly policies—positions San Marcos as a rising player in the aerospace and defense supply chain. The implications are far-reaching: not only does it diversify the local economy beyond traditional industries, but it also creates high-skilled jobs and attracts talent to the region. As aerospace and defense companies seek resilient supply chains and cost-effective locations, San Marcos offers a compelling proposition. The city's proactive stance could serve as a model for other mid-sized cities looking to capitalize on the growing demand for advanced manufacturing and defense technologies.
