Southern California’s Space Economy Sees Rapid Growth

Southern California, August 30, 2025

News Summary

Southern California’s aerospace sector is thriving, fueled by innovative startups like Vast, which is developing the first commercial space station. Other companies, such as Varda Space Industries and AstroForge, are advancing pharmaceuticals and asteroid mining. With significant job growth and investments from Silicon Valley, the region is becoming a hub of aerospace innovation, attracting talent and fostering collaboration.

California – Southern California’s space economy is experiencing significant growth, driven by a surge of innovative startups in the aerospace sector. These companies are positioning themselves at the forefront of space exploration and technology, particularly as the International Space Station (ISS) approaches its end of service.

Among the notable players is Vast, a startup based in Long Beach, which is developing Haven-1, potentially the first commercial space station to orbit Earth. This project aims to provide a viable alternative to the ISS, which is set to retire in the coming years. Vast plans to launch Haven-1 within the next year and is actively seeking contracts from NASA to help facilitate its mission.

Varda Space Industries, located in El Segundo, has made strides in the medical field by successfully growing molecular crystals in microgravity, which may enhance the effectiveness of drug injections for cancer patients. The company has secured $329 million in venture capital, enabling it to focus on creating automated laboratories that can yield purer pharmaceutical products in space.

Another emerging company, AstroForge, from Seal Beach, has ambitious plans to mine asteroids for platinum, a venture potentially worth billions of dollars. These forward-thinking companies reflect a broader trend of innovation and expansion in Southern California.

The region’s aerospace industry is benefiting not just from new startups but also from an influx of talented professionals. Approximately 128 companies linked to former employees of SpaceX have emerged in Southern California, with 63 established within the area. This transition follows SpaceX’s pioneering efforts in low-cost reusable rocket technology, although it has shifted its major operations to Texas.

Overall, Southern California’s aerospace and defense sectors added 11,000 new jobs within the past year, with an average salary significantly exceeding the county’s median wage. According to the LA Economic Development Corporation, there are over 58,700 workers in the aerospace and defense industries in Southern California, with an average annual salary reaching $141,110.

The aerospace manufacturing landscape is evolving, particularly in Long Beach, where the closure of the Boeing C-17 production line has allowed the city to attract advanced manufacturers. Startups like Relativity Space are contributing to this revitalization by developing 3-D printed rocket engines and expanding operations with a new headquarters in Long Beach. Additionally, companies like Rocket Lab are actively seeking to increase their launch frequency and secure substantial satellite launch contracts.

Funding from Silicon Valley investors, including prominent figures like Peter Thiel, is also playing a crucial role in supporting space-related businesses in the region. City planners in Long Beach have made strategic zoning changes to attract high-quality manufacturers and startups, fostering environments that encourage collaboration and innovation.

The Smoky Hollow neighborhood in Long Beach has transformed from a refinery area into a burgeoning hub for aerospace and advanced manufacturers, reflecting broader technological advancements in the field. With the existing pool of engineering talent in Southern California, new startups find this area an attractive location for their operations, as they compete for skilled labor from local universities.

In summary, Southern California is witnessing a resurgence in its aerospace industry, driven by cutting-edge startups and job growth. With ongoing advancements in space technology and pharmaceuticals, the future appears promising for the region’s aerospace landscape.

FAQ

Deeper Dive: News & Info About This Topic

• Los Angeles Times: How the New Space Economy is Transforming Southern California
• Wikipedia: Space Economy
• KFI AM 640: Space Startups Boost Southern California Economy
• Google Search: Southern California Space Economy
• Payload Space: SoCal Will Be Space Central with or Without Elon, Experts Say
• Encyclopedia Britannica: Aerospace
• Los Angeles Business Journal: Special Report on Aerospace
• Google News: Aerospace Industry Southern California
• McKinsey: Space – The $1.8 Trillion Opportunity for Global Economic Growth
• Google Scholar: Southern California Aerospace

Author: STAFF HERE LOS ANGELES WRITER

LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the LA Auto Show, Hollywood Film Awards, and the Los Angeles Marathon. Our coverage extends to key organizations like the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology that power the local economy such as Warner Bros. and SpaceX. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HEREHuntingtonBeach.com, and HERESantaAna.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.