10 States Primed to lead the industry
The American Space Sector has room to grow
The Space Industry has long been dominated by four states: Texas, Florida, California, and Virginia. However, as the industry evolves, stakeholders must look to new frontiers to access skilled labor and keep operating costs down. Many are already assessing Puerto Rico for its potential equatorial launch opportunities, or Massachusetts for its strong STEM population, and Washington for its aviation industry. However, there are ten states beyond these and the Big Four that the aerospace industry routinely undervalues that could easily become industry leaders.
key factors
When determining the value of a state to the space industry traditionally stakeholders look at the presence of a large population of Science, Technology, Engineering, and Mathematics (STEM) workers, a strong presence from the US military and/or NASA, and a large capital base. California, Texas, Florida, and Virginia have all three of these key factors by a sizable margin compared to other states. However, Skilled Technical Workers (STW), workers who use STEM skills on the job regardless of education background, are in short supply nationally, and in the Big Four competition is fierce. Beyond the Big Four are ten states with large STW workforces that the aerospace industry has yet to fully utilize. These states frequently have inexpensive land, favorable tax rates, and low-cost transportation infrastructure for bulk goods.
1. Oklahoma
Oklahoma is home to a sizable US military presence, with three Air Force Bases, an adjoining industrial park, a dedicated “living laboratory” for testing myriad emergent technologies, along with a US Army ammunition plant. All of that adds up to a labor pool where 16% of the workforce are STW. The heavy USAF presence also means that many of these workers are contractors with aviation and aerospace specific skills. In addition, the state is only about 1.5 degrees further north than Los Angeles, meaning that satellite operators can access similar orbital planes from hypothetical Oklahoma based launch sites. The state also enjoys a corporate rate of 4% and/or graduated personal rate that ranges from 0.25% - 4.75%, with relatively inexpensive land prices, and overall cost of living being the third lowest in the United States. All of this amounts to a state that is very attractive to both businesses and employees, particularly people at the beginning of their careers. All told, Oklahoma is an undervalued opportunity to build and grow aerospace businesses.
2. Mississippi
Mississippi has a workforce that is 16.1% STW, a 5% corporate tax rate, extensive rail and maritime shipping infrastructure, and is ranked twelfth in the US in terms of oil production as of April 2023. The oil industry presence means its workforce is ideal for sourcing fuel loaders, handlers, and if need be refining operations. Mississippi’s access to the river from which it gets its name, and the Gulf Coast intercoastal waterway has always made it a place that can access much of the eastern US through inexpensive riverine and coastal shipping. That same access grants launch providers access to the gulf coast from which floating platforms can launch easterly without risk of debris falling over populated areas.
3. Indiana
Indiana is perhaps one of the most undervalued states for the space industry. It has large numbers of low cost manufacturing facilities, connections to the oil industry, and a sizable manufacturing workforce of which 15.7% are STW. Additionally access to the Ohio River, Lake Michigan and through it the St. Lawrence Seaway makes it ideal for shipping manufactured aerospace parts and finished goods to coastal launch sites. The state’s rail and road infrastructure makes it ideal for standing up offsite manufacturing operations. This sector is part of a broader job aerospace industry starved for skilled machinists, tool & die workers, and other skilled industrial manufacturing workers.
4. Alaska
Alaska is the only state on this list that offers relatively easy polar launch opportunities which is a high priority for companies seeking customers at the US Department of Defense (DoD) or National Oceanic and Atmospheric Administration (NOAA). Alaska also offers a workforce of which 15.8% are STW, with its growing population, an established workforce for the military and oil industry, and tax incentives for new businesses and individuals, easing the cost of moving.
5. Alabama
Alabama already has an important aerospace presence in the form of the Redstone Arsenal. This US Army post has helped foster the educational and industry specific infrastructure in Huntsville and Alabama in general that the NewSpace sector has not properly taken advantage of to date. With a 15.4% STW workforce, and similar business climate and geographic advantages as Mississippi, this state offers a lot of opportunities that have largely gone unappreciated by the wider space industry.
6. Wyoming
Wyoming enjoys a workforce that is 15.3% STW, inexpensive land, and healthy tax incentives. Wyoming has something no other state on this list includes; a titanic pool of investors that regularly visit the state via tourism to Jackson Hole. The state has struggled to find a way to get this source capital to do more than visit, and the space industry is an ideal way to make it happen. Its availability of sparsely populated land makes it ideal for engine testing, satellite ground infrastructure, and if executed correctly, launch sites.
7. Iowa
While most may only think of Iowa as an agriculture powerhouse, the state has long since transitioned to a diversified economy of advanced manufacturing, processing, information technology, biotechnology, and green energy production. With 15.1% of the workforce being STW, a strong manufacturing infrastructure, affordable energy, and convenient river transportation, Iowa has all the ingredients for business success. There's a lot to appreciate about Iowa beyond the cornfields.
8. New Jersey
New Jersey is one of the only states on this list that is capable of acting as a land based, eastern facing launch hub, having direct access to Atlantic Ocean. The state is also home to a respectable presence from the tech, manufacturing, and oil industries, resulting in 12.3% of its workforce being STEM workers. Its proximity to New York and its own universities gives it easy access to a massive pool of capital, young highly educated workers, and opportunities to build relationships with major universities to cultivate a steady supply of industry-specific talent. The south of the state currently enjoys real-estate prices comparable to much of coastal North Carolina or Eastern Oregon, and would be ideal for eastern facing launch sites.
9. Illinois
Already the home to a large tech sector, capital base, and manufacturing industry, along with access to riverine and ocean going shipping via the Great Lakes-St. Lawrence Seaway, Illinois has much to offer an aerospace manufacturing or servicing company. The Chicago area is also one of the most affordable major cities in the US, which is attractive to entrants to the labor force. With 11.2% of the workforce focused on STEM fields, there is a large pool of talented labor to draw from. With these resources, Illinois provides an ideal location for aerospace manufacturing and servicing businesses to grow and thrive.
10. Oregon
Dubbed the Silicon Forest, the Portland area is home to a sizable tech sector and the largest site for Intel’s advanced technical operation, leading to 11.2% of the state’s employee’s being STEM focused. Oregon also has access to ocean going shipping opportunities, a sizable amount of inexpensive, sparsely populated land in the east of the state, and proximity to the manufacturing and tech ecosystems of neighboring California and Washington. Oregon is well positioned to be a home for smallsat manufacturers, data analytics companies, and other aerospace companies that rely on a workforce that often overlaps with the tech sector.
These ten states are not alone in undervalued polities that have a great deal to offer the aerospace industry, and Space Advisors will continue to update our lists and highlight the places and people that this industry often overlooks.