Colorado one up on Texas in space race

State jumps to No. 2 in private-sector workers

Roger Fillion, Rocky Mountain News

Thursday, September 20, 2007

Colorado vaulted past Texas into the No. 2 spot nationwide for the size of its private-sector aerospace work force.

California retained its No. 1 ranking for 2007, according to a report issued by the Metro Denver Economic Development Corp.

The data confirm what government and industry officials here suspected: Colorado's space economy got a big shot in the arm from Lockheed Martin Corp.'s $8.2 billion NASA spacecraft contract and United Launch Alliance's decision to put its headquarters here.

ULA, with 1,600 employees in the Denver area, is a joint rocket-making venture of Lockheed and Boeing Co.

Colorado's private aerospace work force in 2007 stands at 26,650, about 920 more workers than in Texas, which had held the No. 2 spot.

"We're definitely neck and neck. At this point in time we have pulled out a little bit ahead," said Patty Silverstein, the economist who conducted the report for the Metro Denver EDC.

California has more than 68,000 private aerospace workers.

The report relies on data from the U.S. Census Bureau, research firm Dun & Bradstreet Corp. and Silverstein's firm, Denver-based Development Research Partners.

Colorado's space workers make everything from rockets and satellites to satellite-tracking systems, antennas, guidance systems and software for spacecraft.

Big employers include Lockheed Martin, ULA, Raytheon Co., Ball Aerospace & Technologies Corp. and Northrop Grumman Corp.

Their work gets a boost from the presence of such military installations as Buckley Air Force Base in Aurora and Peterson Air Force Base in Colorado Springs.

The growth in Colorado's private aerospace work force has outpaced the nation's, the data show, although most of the top states have posted gains amid a spurt in defense spending.

The number of people employed directly in aerospace in Colorado grew 12.9 percent from 2006 to 2007, vs. a 0.8 percent growth rate nationwide.

From 2002 to 2007, Colorado tallied a 27.4 percent aerospace employment growth rate, vs. a national growth rate of 2.7 percent.

Colorado also has the highest concentration of workers in aerospace, at 1.3 percent of its overall work force, compared with 0.3 percent for the United States. New Hampshire had held the No. 1 spot.

Silverstein said the outlook remains bright for Colorado's space economy, as long as the U.S. government continues to plow money into defense and space-related programs.

"Colorado offers the type of work force these companies need to grow and expand," Silverstein said.

But Todd Mosher, director of advanced systems at satellite maker MicroSat Systems Inc., pointed to what other states are doing to woo aerospace companies.

He noted that states such as Texas and Florida are doling out millions of dollars in grants to aerospace companies to locate inside their border, in addition to sponsoring recruiting and advertising campaigns.

Mosher also pointed to New Mexico's decision to bankroll construction of a $225 million spaceport to accommodate private rocket launches that some day could send ordinary citizens into space.

"The state of Colorado is trying to do some of that as well. Compared to other states, they're not as active," said Mosher, whose Jefferson County company builds tiny satellites that typically weigh 500 pounds or less.

According to the new report, almost 500 of Lockheed Martin's Colorado employees are working on NASA Orion spacecraft, intended to take astronauts to the moon and eventually Mars. Many of the workers are engineers designing and developing the spacecraft.

The report said an additional 600 Orion-related jobs could be added in Colorado by 2009.

Lockheed Martin officials say the Orion program has made Colorado a human spaceflight hub.

"It's the primary human spaceflight center outside of NASA," said John Stevens, director of business development for human spaceflight at Lockheed Martin.

While Texas has fallen to third place, the state is likely to pursue Colorado aggressively. The state's enterprise fund, used to "close the deal" for companies locating in Texas, was funded initially in 2003 with $295 million.

Since then, it has sealed deals on projects that have generated 45,000 jobs, according to Allison Castle, spokeswoman for Texas Gov. Rick Perry.

She also noted that Perry is keen on the state's space economy. "He understands aerospace and aviation, having been an Air Force pilot," Castle said.

fillionr@RockyMountainNews.com or 303-954-2467