The City of San Marcos has purchased nearly 200 acres from the U.S. Department of Labor to extend the runway at San Marcos Regional Airport, a move that could significantly boost the region's aerospace and defense industries. Helen Ramirez, economic development director for the city, discussed the project on a recent episode of The Building Texas Show, highlighting how this expansion fits into a broader strategy to attract aerospace, defense, and manufacturing companies to the area.
The runway extension is funded by FAA and Texas Aviation grants, and the airport already hosts more than 18 tenants, including Berry Aviation, now owned by publicly traded Bristow Group (NYSE: VTOL). This infrastructure improvement is critical for attracting larger aerospace companies that require longer runways for testing and operations. Adjacent to the airport is the 2,000-acre TriTexas mega site, which already has regional detention and utilities in place, making it ready for development. These assets position San Marcos as a prime location for aerospace and defense businesses looking to expand in Central Texas.
Ramirez is not chasing a spaceport with rocket launches; instead, she envisions San Marcos as a hub for the intelligence and ecosystem behind space exploration. She points to Hawthorne, California—home to Raytheon, Boeing, and Northrop Grumman—as a model for the type of aerospace and defense manufacturing and research that could thrive in San Marcos. The city is already home to Texas State University's Star Park, an incubator that hosts the Innovation Corridor Defense Accelerator, run in partnership with Starburst Aerospace and the Hays Caldwell Economic Development Partnership. This accelerator supports startups and entrepreneurs in defense and aerospace technologies, further strengthening the local ecosystem.
The economic momentum is evident. A survey conducted by Ramirez's office of 98 companies found that over 90% reported stable or growing operations, and about 40% are actively expanding. Epic Piping is adding 100 employees, Amazon continues to grow its footprint, and Collins Aerospace, which also operates in California, told Ramirez that business is better in San Marcos. Nabaco, a Texas State spinoff 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 130-key boutique hotel downtown. The hotel, on land donated by Texas State, includes a minimum-wage requirement tied to inflation in its incentive deal, ensuring that economic growth benefits workers.
The city's approach to economic development is hands-on. Ramirez's staff has direct access to the city's permitting software, allowing them to answer permit questions in real time. For example, Texas Building Supply, which is on track for roughly $40 million a year in sales tax once fully ramped, receives prompt responses without any incentive package. This efficiency is a key selling point for businesses looking to relocate or expand quickly.
San Marcos is strategically located between Austin and San Antonio, two major metropolitan areas with growing tech and aerospace sectors. By extending the runway and developing the TriTexas site, the city is positioning itself to capture a share of the aerospace and defense industry's growth. The focus on intelligence and ecosystem building, rather than rocket launches, differentiates San Marcos from other regions and aligns with its existing strengths in education, manufacturing, and logistics. As companies seek to diversify their operations and supply chains, San Marcos offers a compelling combination of infrastructure, workforce, and quality of life.
