According to the Aerospace Industries Association (AIA), in 2023 the aerospace & defense (A&D) industry in California supported a total of about 358,841 jobs statewide — including 116,403 direct jobs and roughly 242,437 jobs in the supply chain.

That industry generated an overall economic output of roughly $148.8 billion in 2023; its contribution to California’s GDP — from both direct activity and supply-chain ripple effects — was about $70.5 billion.

As a share of the state economy, the A&D sector contributed about 1.82% of California’s GDP in that year.

Those are massive numbers — they show that aerospace & defense is a major employer, a major source of economic activity, and a significant contributor to state GDP.

What A&D Provides California — Beyond Just Raw Output

  • High-Wage, Skilled Jobs: The average wage of an A&D employee in California is around US$126,710. That puts A&D jobs among the well-paying, skilled-labor jobs in the state, supporting livelihoods and local economies across many communities.
  • Supply-Chain & Indirect Effects: The sector doesn’t just impact companies that build aircraft or satellites. Because of its supply chain — components, materials, services, maintenance, engineering, logistics — it supports a broad ecosystem of firms across many industries. This helps sustain jobs not only in aerospace firms themselves, but in ancillary industries.
  • Tax Revenues: The sector contributes significantly to state and local tax revenues; the AIA data shows substantial tax payments tied to A&D wages and business activity.
  • Innovation & R&D — Long-Term Value: California’s A&D sector is often at the cutting edge of aerospace, space, and defense technology; this bolsters the state’s role in advanced manufacturing, research, and technology export.
  • Resilience & Diversification of Economy: Given that California’s overall manufacturing base is large (with many sectors), A&D helps diversify that base — especially in high-tech manufacturing and defense-related work — offering stability and reducing over-reliance on any single industry.

Recent Growth & Trends — A&D Isn’t Static

The sector has recently seen a resurgence. For example, one report estimates 11,000 new aerospace jobs added between 2022 and 2024, reflecting growth especially from space-related startups and renewed investment.

This growth suggests California’s A&D industry isn’t just legacy manufacturing — it’s evolving with commercial space, advanced defense technologies, and modern aerospace.

Why It Matters Strategically (for the State and U.S.)

  • Workforce— Because A&D supports high-skill, high-wage employment, it helps maintain California’s standard of living, supports middle-class jobs, and underpins many local economies (especially around aerospace hubs).
  • Supply Chain — It sustains a critical supply chain and infrastructure for national defense, space launch capability, satellite and communications technology — which ensures California retains a strategic role in national security and global aerospace competitiveness.
  • Growth — The mix of defense, space, and private aerospace (commercial launch, satellites, R&D) makes the industry a growth engine for future-oriented sectors — like space tech, advanced manufacturing, and aerospace-adjacent innovation.
  • Reach — The multiplier effect (direct + indirect jobs, related industries, supply chain) means A&D’s value extends far beyond the firms directly building aircraft or defense products — benefiting many other sectors of the state economy.

Conclusion

Aerospace and defense manufacturing is absolutely critical to California’s economy — not a fringe or niche sector, but a major engine of economic output, employment, innovation, tax revenue and industrial capacity. Even as the state’s economy has diversified heavily (tech, entertainment, agriculture, services), A&D remains one of the most important manufacturing clusters.

Manex supports numerous A&D manufacturers including Vacuum Process Engineering, a Sacramento-based heavyweight in aerospace, defense, energy, and semiconductors, plus Bay-Area based A&D manufacturers including Skydio, Elma Electronic, A1J Technologies, EOTECH, WessDel, Petersen Precision, and Golden Altos.

 

Contact Manex today to learn how we can work with your manufacturing company to reach your goals.