The Impact of Space Force Command's Relocation Away from Colorado

June, 2026

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What does the Relocation of Space Force Command to Alabama Mean for the Colorado Aerospace Industry? In short, the industry has a very deep presence. The relocation is unlikely to shift Colorado's Economic Outlook

Colorado is home to one of the largest aerospace engineering industries in the United States, with the 5th most employees (behind much larger states like California and Texas) and the 4th highest number of aerospace engineers per thousand jobs.[1] This is in large part due to the significant federal and Department of Defense presence in the Denver and Colorado Springs areas, including Peterson Space Force Base, Buckley Space Force Base, Schriever Space Force Base, Cheyenne Mountain Space Force Station and the Air Force Academy.

In September 2025, the Department of Defense announced the relocation of Space Force Command from Peterson Space Force Base in Colorado Springs to Redstone Arsenal in Huntsville Alabama. It is estimated that the move will transfer 1,400 jobs and $1 billion in economic value away from the state.[2] In the long term however, will there be structural impacts on the Colorado Aerospace Industry?

The large Aerospace presence in Colorado is primarily thanks to the US military. Lockheed Martin opened its first facility in Colorado in the 1950s to meet the needs of the U.S. Air Force’s rocket development program[3]. In 2001, Northrup Grumman opened its first office in Lafayette Colorado in part to support Department of Defense IT needs.[4] That company has since expanded its presence to support missile and aircraft development. Boeing’s Space and Communications Division opened their first office in Colorado in Boulder in 2002.[5]

These companies’ presence combined with the significant federal Air Force and Space Force presence in the state makes for an expansive Aerospace industry. The Colorado Office of Economic Development and International Trade (OEDIT) estimated in November 2024 that the aerospace industry supported over 55,000 jobs, brought in $38 billion in federal contracts and hosts half of the national Space Force presence.[6]

In the broader context, relocation of Space Force Command will have a non-negligible but non-existential impact to the State’s aerospace industry. The relocated 1,400 jobs represents less than 2% of the overall workforce attributed to the industry and a fraction of the economic impact. Colorado will continue to host three Space Force Bases and is home to a significant private sector presence that continues to make plans to expand their presence in the state.[7]

[1] https://www.bls.gov/oes/2023/may/oes172011.htm

[2] https://www.koaa.com/news/local-news/space-command-leaving-space-force-expanding-significantly-in-colorado

[3] https://choosecolorado.com/success-stories/lockheed-martin/

[4] Northrop Grumman Corporation. ‘Logicon Opens New Building in Colorado to House National Customer Service Center.’ August 17, 2001. https://www.google.com/url?sa=i&source=web&rct=j&url=https:/investor.northropgrumman.com/node/9561/pdf&ved=2ahUKEwiF-MP6l-uUAxW5HEQIHYypC6AQ0YISegoIAggACAEIAxAC&opi=89978449&cd&psig=AOvVaw0evpWcMIy8cFYdgOsJU854&ust=1780580113472000

[5] https://bizwest.com/2002/05/03/boeing-division-opens-small-office-in-boulder/#

[6] https://oedit.colorado.gov/blog-post/five-ways-colorados-aerospace-industry-is-out-of-this-world

[7] https://oedit.colorado.gov/press-release/governor-polis-announces-sodern-america-aerospace-expansion-in-douglas-county