San Marcos is making a significant push into the aerospace and defense sectors, leveraging its regional airport and a new 2,000-acre mega site to attract major employers. In an interview on The Building Texas Show, Helen Ramirez, economic development director for the City of San Marcos, outlined the city's largest active projects, including the purchase of nearly 200 acres from the U.S. Department of Labor to extend the San Marcos Regional Airport runway. This expansion is funded by FAA and Texas Aviation grants and aims to accommodate larger aircraft, potentially opening doors for aerospace manufacturing and defense contractors.
The airport already hosts over 18 tenants, including Berry Aviation, now owned by publicly traded Bristow Group (NYSE: VTOL). The runway extension is seen as a critical step to attract companies that require longer runways for testing or operations. Adjacent to the airport lies TriTexas, a 2,000-acre, rail-served mega site with regional detention and utilities already in place, ready for tenants. This site is positioned to become a hub for aerospace, defense, and advanced manufacturing, capitalizing on Central Texas's growing reputation as a technology and innovation corridor.
Ramirez emphasized that San Marcos is not pursuing a spaceport with rocket launches, but rather the intelligence and ecosystem side of the space industry. She referenced Hawthorne, California—home to Raytheon, Boeing, and Northrop Grumman—as a model for the type of aerospace manufacturing and research hub San Marcos aims to build. "We are looking at that future of space. It is not necessarily launching rockets," Ramirez said. "But we can be part of the intelligence of creating that ecosystem."
The city's efforts are supported by local assets like Texas State University's Star Park, an incubator that houses the Innovation Corridor Defense Accelerator, run in partnership with Starburst Aerospace and the Hays Caldwell Economic Development Partnership. This accelerator is designed to nurture startups and technologies with defense and aerospace applications, further strengthening the region's appeal.
Data from a survey conducted by Ramirez's office of 98 companies shows that over 90% are stable or growing, and about 40% are actively expanding. Epic Piping is adding 100 employees, Amazon continues to grow its footprint, and Collins Aerospace reported better business conditions in San Marcos than in California. Nabaco, a Texas State spinout that went through a Rice University accelerator, now operates in Spain but still hires Texas State graduate students. US Aviation trains active-duty Air Force cadets at the airport, and Texas State is adding a hospitality program tied to a new downtown boutique hotel project.
The 130-key Midway Hotel, set for downtown on land donated by Texas State, includes a minimum-wage requirement tied to inflation in its incentive deal, reflecting the city's focus on equitable growth. Ramirez also highlighted the city's pro-business approach, noting that her staff has direct access to permitting software, allowing them to answer questions in real time. Texas Building Supply, on track for roughly $40 million a year in sales tax once fully ramped, benefits from this efficiency without any incentive package.
These developments matter because they signal a strategic shift for San Marcos, a college town between Austin and San Antonio, toward becoming a key player in the aerospace and defense supply chain. The runway extension and mega site could attract significant investment and high-paying jobs, diversifying the local economy beyond education and retail. As the aerospace industry continues to grow, San Marcos's proactive approach could serve as a model for other mid-sized cities looking to capitalize on their existing infrastructure and workforce.
