NEW COLORADO SPACE COALITION STUDY HIGHLIGHTS OPPORTUNITIES TO STRENGTHEN THE STATE’S AEROSPACE ECONOMY
Aerospace and Defense Industry study identifies opportunities to strengthen Colorado’s competitive position and support long-term industry growth
DENVER, CO — July 16 2026 —The Colorado Space Coalition (CSC), part of the Metro Denver Economic Development Corporation (EDC), announced today the completion of a new industry assessment of Colorado’s aerospace and defense ecosystem and competitive positioning within the sector versus other states and regions. The study provides one of the most detailed examinations to date of the state’s industry value chain, competitive position, and opportunities for future growth.
The report by McKinsey & Company, commissioned by the CSC, evaluates the state’s aerospace and defense supply chain, benchmark Colorado against other leading aerospace markets, and identifies strategic initiatives to strengthen one of the state’s most important industries. A full public report will be released in the coming weeks.
The aerospace and defense industry contributes approximately $14.6 billion in Gross Regional Product, accounting for roughly 4 percent of total U.S. aerospace and defense output, even though Colorado represents only about 2 percent of the nation’s overall economy. The study also found that the state has one of the highest concentrations of aerospace and defense activity in the United States.
While federal aerospace and defense obligations in Colorado have grown over the past five years, competitor states including Virginia, Oklahoma, Texas, and Florida have expanded at significantly faster rates. The report concludes that Colorado has exceptional strengths but faces growing competition from states making aggressive investments in business attraction, manufacturing, workforce development, and industry growth.
“Our conversations with companies, combined with the data, tell a very consistent story,” said Daniel Ryley, Vice President of Economic Development, EDC, who leads the Colorado Space Coalition. “We’ve built an incredible foundation, particularly in space systems, software, digital engineering, and mission support. At the same time, maintaining our leadership will require creative and continued investment in the parts of the value chain that will shape the industry’s future.”
Among the report’s key findings are several strengths that continue to distinguish the state nationally:
- A highly concentrated aerospace and defense ecosystem anchored by world-class companies, research institutions, and military installations.
- National leadership in software, digital systems, mission support, and advanced space technologies.
- A highly educated workforce supported by a strong talent pipeline.
- An innovation ecosystem that continues to attract entrepreneurs and emerging technology companies.
The study also identified opportunities to strengthen competitiveness, including:
- Expanding advanced manufacturing capabilities that are currently underrepresented in the aerospace supply chain.
- Developing additional in-state suppliers for critical components and specialized manufacturing.
- Improving the business environment for companies looking to launch, expand, or invest, and bolster the region’s support for early-stage companies and space technology startups.
- Positioning the state to lead in emerging technologies such as quantum, advanced energy, autonomous systems, and next-generation space technologies.
- Exploring opportunities to build domestic supply chains for rare earth elements and other aerospace critical materials.
One of the report’s central findings is that Colorado excels in the highest-value segments of the aerospace industry, including software, digital engineering, systems integration, and mission support. However, the state has fewer companies focused on advanced manufacturing, specialty materials, and component production. Expanding those capabilities would allow Colorado to capture more of the industry’s value chain while creating additional high-paying manufacturing jobs.
Industry leaders interviewed for the study consistently praised the state’s talent, quality of life, collaborative business climate, and innovation ecosystem. At the same time, they pointed to opportunities to improve permitting, regulatory coordination, infrastructure, business incentives, and supplier connectivity to better compete with other leading aerospace states.
“Colorado has every ingredient needed to remain a global aerospace leader,” said Raymond H. Gonzales, President of Metro Denver EDC. “By strengthening our industrial base, improving our competitiveness, and making smart strategic investments, we can ensure the next generation of aerospace growth happens here. At the same time, we have real challenges to address. Other states are moving quickly, and this report provides a blueprint for how we can work together to keep Colorado at the forefront of the industry.”
The Colorado Space Coalition will release the complete report later this fall. It includes a detailed analysis of Colorado’s competitive position, benchmarking against peer states, industry interview findings, and recommendations for policymakers, business leaders, educational institutions, and economic development organizations.
Along with analysis of federal, state, and private sector data, the study was informed by direct interviews and industry roundtables with aerospace and defense companies and leaders from across the state, representing small, medium, and large sized businesses, universities, and government.
About the Denver Metro Chamber of Commerce
The Denver Metro Chamber of Commerce (DMCC) is the architect of tomorrow, igniting change and driving progress to build dynamic economies and communities. We champion innovation, forge powerful partnerships, and relentlessly advocate for our members and all Coloradans. With more than 150 years of trust and impact, we help business flourish.
The DMCC’s vision is Economic Empowerment for Every Coloradan and is achieved by advocating for effective public policy, developing civic leaders, and driving a sustainable economy. We promote a vibrant economy by fostering a business-friendly environment, supporting a skilled workforce and facilitating connections. Dedicated to boosting business and employee opportunities, the Chamber drives sustainable growth and prosperity across Colorado
About the Metro Denver EDC
The Metro Denver Economic Development Corporation (Metro Denver EDC) is a private, business-led economic development organization driven by the support of its corporate and community investors. Funded by businesses, for businesses, Metro Denver EDC focuses on fostering a robust economic ecosystem by attracting and retaining companies, talent, and investment to the 12-county Front Range region in Colorado. Through strategic collaboration with more than 100 communities and innovative initiatives, the Metro Denver EDC is committed to advancing the region’s position as a global hub for business success and community prosperity.
About the Colorado Space Coalition
The Colorado Space Coalition (CSC) is a group of industry stakeholders working to make Colorado a center of excellence for aerospace. CSC members promote Colorado’s significant space assets and advance legislation vital to sector growth and success.
