Aerospace & Defense

BizTUCSONOctober 21, 2025

3 minutes read

Industry Sector Still Tops in the U.S.

By Tom Leyde

The aerospace/defense industry in the Tucson area is in a word − immense.

There are 200 businesses in the sector here with approximately 30,000 employees, according to The Chamber of Southern Arizona. In 2024, the industry had $2.3 billion in earnings, contributed $39.6 million in property taxes and had $2.6 billion in gross regional product.

Tucson is ranked in the top 10 metro areas for aerospace manufacturing due to its highly concentrated aerospace products and parts manufacturing section. And the state of Arizona ranks fifth for NASA-funded activity.

In 2022, U.S. News and World Report ranked the University of Arizona as one of the top two public universities in space science. Also, Pima Community College offers specialized training in aviation technology, aerospace machining and defense industry skills.

“The aerospace and defense industry has a long history as an economic driver in Southern Arizona,” said Susan Dumon, chief economic development officer at The Chamber of Southern Arizona. “The industry has been a key part of our modern economy’s foundation and will stay vital as space technology and research comes to the forefront.”

Among the products the aerospace/defense industry produces here are:

Flight recorders.
Flight displays.
Precision hydraulic and bearing components for aerospace, defense, space and marine markets.
Aircraft cameras.
Energy storage systems as well as power conversion systems, security and wireless systems.
High-power semiconductor laser components and systems.
Precision-machined parts for flight-critical aerospace application, fluid management systems and radar defense structures.
Space and missile systems.

Raytheon, an RTX business, is the largest aerospace/defense industry here with 12,500 employees. It specializes in integrated air and missile defense, advanced sensors, space-based systems, hypersonics and effectors.

“Tucson is the largest missile manufacturing operation in the world, and that’s very much what we are focused on, missiles,” said Sam Deneke, president of Air and Space Defense Systems at Raytheon.

The United States and other countries are in the process of munitions replacement, Deneke said, and Raytheon is playing a major role in the process.

This year the company landed a $3.5 billion Department of Defense contract for its advanced medium-range air-to-air missiles or AMRAAM − its largest order ever. The missiles will be built for the U.S. Air Force and Navy and for foreign military partners.

The newest contract will keep Raytheon employees busy until 2031.

The company has 4.7 million square feet of space in Tucson, including its sprawling campus and an engineering office at the University of Arizona Tech Park.

“We have an outsized importance and responsibility that we’re well aware of in Southern Arizona from an economic impact and social impact as well,” Deneke said. “We’re certainly growing here in Tucson.”

Deneke emphasized Raytheon’s collaboration with the UA and Pima Community College. The company hires a large number of UA engineering school graduates as well as PCC grads.

“This is the fifth-largest concentration of aerospace and defense work in the country, and that wouldn’t be possible without the tech collaboration with the city and the universities here,” Deneke said.

The aerospace/defense industry is expected to grow here in the future.

“We proactively work to recruit aerospace and defense firms,” said the Chamber’s Dumon. “The industry is diverse, and we assist companies that range from small, specialized firms with top security clearances to large multinational commercial aviation corporations. We also meet with existing industry players in the region to ensure they remain and expand in Southern Arizona.”

Other major industry players in the Tucson area include:

Bombardier

Bombardier Learjet is a premier aviation consultant offering expert services in the field of aircraft engineering and design. Specializing in innovative solutions for aircraft maintenance and upgrades, they are known for their meticulous attention to detail and commitment to excellence.

Universal Avionics

Universal Avionics safely guides pilots and passengers with forward fit and retrofit solutions, flying on over 35,000 airplanes and helicopters worldwide. It’s a leading manufacturer of innovative commercial avionics.

Sargent Aerospace & Defense

Sargent Aerospace and Defense is a manufacturer of precision hydraulic and bearing components and assemblies supporting the aerospace and defense, space and marine markets.

Northrop Grumman

The company designs, develops, builds and supports advanced technologies for global security and human discovery, with a focus on aeronautics, spacecraft and weapons systems. The company’s innovative solutions include advanced aircraft, autonomous systems, space telescopes, launch systems, communication satellites and sophisticated weapon systems for military and civilian customers. The size of the Northrop Grumman plant in Sierra Vista, AZ. is currently 100,000 sq. ft. with plans to expand in the future.