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 position the city as a hub for aerospace and defense manufacturing. The land acquisition, discussed by economic development director Helen Ramirez on The Building Texas Show, is part of a broader strategy to leverage the city’s location between Austin and San Antonio and its existing industrial assets.
The runway extension is funded by FAA and Texas Aviation grants and aims to accommodate larger aircraft, potentially attracting more aerospace businesses. The airport already hosts over 18 tenants, including Berry Aviation, now owned by publicly traded Bristow Group (NYSE: VTOL). This expansion could enhance San Marcos’s competitiveness in a region already home to major aerospace players like SpaceX’s Starbase in Boca Chica and Collins Aerospace in California. Ramirez noted that Collins Aerospace, which operates in both California and Texas, reported better business conditions in San Marcos, underscoring the city’s growing appeal.
Adjacent to the airport is the 2,000-acre TriTexas mega site, a rail-served industrial park with regional detention and utilities already in place. The site’s readiness for development, even before a tenant has signed, demonstrates the city’s proactive approach to attracting large-scale manufacturers. This infrastructure investment could be a significant draw for companies seeking shovel-ready sites, especially as supply chains diversify and demand for domestic manufacturing rises.
The city’s economic development efforts are also supported by 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 could foster startups and research in aerospace and defense, creating a pipeline of talent and innovation that complements the airport and mega site.
Ramirez emphasized that San Marcos is not pursuing a spaceport or rocket launches, but rather the “intelligence of creating that ecosystem.” She pointed to Hawthorne, California—home to Raytheon, Boeing, and Northrop Grumman—as a model for the type of aerospace and defense ecosystem Central Texas can build. This focus on intelligence, systems, and components rather than launch operations could attract a different segment of the aerospace industry, one that values proximity to talent, suppliers, and testing facilities.
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, and Nabaco, a Texas State spinoff that operates in Spain, still hires Texas State graduate students. US Aviation trains active-duty Air Force cadets at the airport, further integrating the city into the defense training pipeline.
Downtown, a 130-key boutique hotel is under development on land donated by Texas State University, with a minimum-wage requirement tied to inflation in the incentive deal. The hotel is part of a broader effort to enhance quality of life and attract visitors, which could support business recruitment.
The city’s permitting efficiency is another selling point. Ramirez’s staff has direct access to the city’s permitting software, allowing real-time answers to developers’ questions. Texas Building Supply, on track for roughly $40 million a year in sales tax once fully ramped, benefits from this streamlined process without any incentive package.
These developments signal that San Marcos is positioning itself as a key player in Texas’s aerospace and defense corridor. The runway extension and industrial site readiness could catalyze job growth, diversify the local economy, and strengthen the region’s manufacturing base. As companies look to expand outside major metros, San Marcos offers a compelling combination of infrastructure, talent, and business-friendly policies.
