Southern California, August 29, 2025
News Summary
Southern California is experiencing significant economic growth, largely due to a surge in space-related startups that have created 11,000 new jobs in the aerospace and defense sectors between 2022 and 2024. These jobs offer an average wage of $141,110, well above the county’s median. The region’s aerospace industry is revitalizing thanks to technological advancements and the influence of established companies, particularly SpaceX, which has spurred numerous new ventures. This resurgence illustrates the region’s potential as a leader in the evolving space economy.
Southern California’s Economy Boosted by Space Startups with 11,000 New Jobs
Southern California’s economy is witnessing a remarkable boost from a surge in space-related startups, leading to the creation of 11,000 new jobs in the aerospace and defense industries between 2022 and 2024. The Los Angeles County Economic Development Corporation (LAEDC) has noted that these positions are expected to offer an average wage of $141,110, which significantly exceeds the county’s average wage, emphasizing the sector’s potential to elevate the local economy.
The LAEDC’s 2025 Economic Forecast Report highlights the resilience of Los Angeles County’s economy, noting its ability to withstand challenges such as wildfires and broader economic uncertainties. The report further accentuates the growth projected for 2024, underscoring the county’s adaptability and robust economic foundation.
Supporting the Aerospace Sector
The SoCal Aerospace Council, a division of LAEDC, plays a pivotal role in supporting the aerospace sector by promoting collaboration among industry executives, labor organizations, and educational institutions. This council strives to maintain a competitive aerospace industry while expanding job opportunities for underrepresented communities in Los Angeles, thereby fostering inclusive growth within the sector.
Technological Advancements and New Ventures
Notable advancements in technology, particularly in 5G and the Internet of Things (IoT), are significantly benefiting the space industry. These innovations are empowering both startups and established companies with new capabilities. Furthermore, the technological requirements established by the Space Force are encouraging growth opportunities for both aerospace and non-aerospace companies alike.
Local startups are leveraging the region’s aerospace heritage to carve out new niches. For instance, Vast is in the process of fabricating what could be the first commercial space station to orbit Earth, while Varda Space Industries works on pharmaceuticals grown in microgravity. Another startup, AstroForge, aims to mine platinum from asteroids, showcasing the diverse ambitions within this revitalized sector.
A Historic Revival
Southern California’s aerospace sector experienced a decline post-Cold War but is now revitalizing with a new wave of startups. The region, which boasts a rich aerospace legacy that includes crucial contributions to the Apollo program and the production of space shuttles, is seeing a strategic rebound fueled by innovation.
Significantly impacting this renaissance is SpaceX, founded by Elon Musk in 2002, which has inspired numerous regional startups. Although SpaceX’s main operations have shifted to Texas, its influence persists, with over 128 companies established by former employees, 63 of which continue to operate in Southern California.
The region’s growth is further supported by an influx of venture capital from prominent Silicon Valley investors, enabling local startups to thrive. For instance, Anduril, a drone and autonomous defense system developer based in Costa Mesa, has reached a valuation of $30 billion after a $2.5 billion funding round. While the current 58,700 jobs in aerospace and defense may be lower than historic peaks, they are accompanied by high average wages, showcasing the sector’s continued relevance.
Long Beach’s Transformation
The city of Long Beach has successfully attracted around 30 advanced manufacturers through strategic zoning changes, shifting from refinery services to becoming a hub for aerospace and high-tech manufacturing. The transformation of the Smoky Hollow neighborhood exemplifies this shift, offering new opportunities in high-tech industry fields.
The establishment of innovative companies like Varda Space Industries further illustrates the thriving ecosystem created by Southern California’s rich history in aerospace engineering and manufacturing, promising a bright future for the region as it aims to lead in the evolving space economy.
Key Statistics
- 11,000 new aerospace jobs projected by 2024
- Average wage of new jobs: $141,110
- Approximately 58,700 existing jobs in aerospace and defense
- 30 advanced manufacturers attracted to Long Beach
- SpaceX influence leading to 128 new companies, with 63 operational
Frequently Asked Questions
What industries are generating new jobs in Southern California?
The aerospace and defense industries are generating 11,000 new jobs between 2022 and 2024.
What is the average wage for the new aerospace jobs?
The average wage for the new jobs in the aerospace sector is $141,110, which is more than double the average wage in Los Angeles County.
How is Long Beach contributing to the aerospace industry’s growth?
Long Beach has attracted about 30 advanced manufacturers, including aerospace firms, and is transforming the Smoky Hollow neighborhood into a center for aerospace and high-tech manufacturing.
Deeper Dive: News & Info About This Topic
- Los Angeles Times: How the New Space Economy is Transforming Southern California
- Wikipedia: Economy of Southern California
- Bloomberg: Rocket Lab & Space Start-Ups Thrive in SpaceX’s California Wake
- Google Search: Space Economy Southern California
- SpaceNews: True Anomaly Opens Long Beach Factory
- Google Scholar: Southern California Space Startups
- Payload Space: SoCal Will Be Space Central With or Without Elon, Experts Say
- Encyclopedia Britannica: Aerospace Industry
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.
