San Marcos has taken a significant step toward becoming a hub for aerospace and defense manufacturing by purchasing nearly 200 acres from the U.S. Department of Labor to extend the runway at San Marcos Regional Airport. The acquisition, announced by Helen Ramirez, economic development director for the City of San Marcos, on an episode of The Building Texas Show, is part of a broader strategy to attract aerospace, defense, and manufacturing companies to the college town situated between Austin and San Antonio.
The runway extension is being funded by grants from the Federal Aviation Administration and Texas Aviation. The airport already hosts more than 18 tenants, including Berry Aviation, which is now owned by publicly traded Bristow Group (NYSE: VTOL). The expansion is expected to enhance the airport's capacity and make it more attractive to larger aerospace operations.
Adjacent to the airport lies TriTexas, a 2,000-acre, rail-served mega site that is already equipped with regional detention and utilities, even before a single tenant has signed on. This ready-to-build infrastructure positions the site as a prime location for major manufacturers and distributors looking to establish a presence in Central Texas.
Ramirez is also leveraging Texas State University's incubator, Star Park, which houses the Innovation Corridor Defense Accelerator, run in partnership with Starburst Aerospace and the Hays Caldwell Economic Development Partnership. This accelerator aims to foster innovation and support startups in the defense and aerospace sectors.
When asked about the possibility of a spaceport, Ramirez clarified that San Marcos is not pursuing rocket launches. "We are looking at that future of space. It is not necessarily launching rockets," she said. "You can have it in Starbase, SpaceX, but that's not what we're looking for. But we can be part of the intelligence of creating that ecosystem." She cited Hawthorne, California—home to Raytheon, Boeing, and Northrop Grumman—as a model for the type of aerospace ecosystem Central Texas could build.
The numbers support the city's pitch. A survey conducted by Ramirez's office and sent to 98 companies found that more than 90% reported they were stable or growing, and about 40% were 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 company that emerged from Texas State and went through a Rice University accelerator, now operates in Spain and 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 hotel project.
The Midway Hotel, a 130-key boutique hotel, is coming to downtown San Marcos on land donated by Texas State University. The incentive deal includes a minimum-wage requirement tied to inflation, ensuring that the development benefits the local workforce.
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, with no incentive package attached, benefits from this streamlined process.
The implications of these developments are substantial. San Marcos is positioning itself as a key player in the aerospace and defense supply chain, which could bring high-paying jobs and economic growth to the region. The runway extension and the TriTexas mega site provide the infrastructure needed to attract large companies, while Star Park and the accelerator foster innovation. The downtown hotel and hospitality program add to the city's appeal as a place to live and work. As the aerospace industry continues to evolve, San Marcos is making a strategic bet that it can become a center for the intelligence and manufacturing side of space and defense, rather than launch operations.
