Move over Hollywood, because with a staggering $111 billion contribution to the state’s economy, Texas isn't just making movies—it's securing the nation's future.
Key Takeaways
- In fiscal year 2022, Texas received $58.1 billion in Department of Defense prime contract awards, ranking second nationally behind California.
- The Texas defense sector contributed $111 billion to the state's GDP in 2021, representing 7.5% of total state GDP.
- Defense-related exports from Texas totaled $12.4 billion in 2022, primarily aircraft parts and military electronics.
- Texas defense industry employed 162,000 direct workers in 2022, with average salary of $102,500.
- Fort Worth's aerospace cluster supported 78,000 jobs in 2023.
- San Antonio defense jobs totaled 104,000 in 2022, 15% of metro workforce.
- Lockheed Martin has 18,000 employees at its Fort Worth F-35 plant in 2023.
- Raytheon Technologies (RTX) McKinney facility produces 600+ missiles annually, specializing in AIM-9X Sidewinder.
- Bell Textron in Fort Worth delivers 12 V-280 Valor prototypes yearly for Army FLRAA program.
- Fort Bliss is home to 1st Armored Division with 18,000 soldiers.
- Fort Cavazos (Hood) hosts III Corps and 40,000 troops.
- Joint Base San Antonio (JBSA) has 80,000 personnel across Lackland, Randolph, Fort Sam.
- UT Austin's Applied Research Labs developed sonar for Navy, funded $50M annually.
- Texas A&M's TEES works on hypersonics with $120M DoD grants since 2020.
- Rice University's nanoelectronics lab supports DoD microchips, $30M funding.
Texas is a national leader in defense with major economic and job impacts.
Economic Contribution
- In fiscal year 2022, Texas received $58.1 billion in Department of Defense prime contract awards, ranking second nationally behind California.
- The Texas defense sector contributed $111 billion to the state's GDP in 2021, representing 7.5% of total state GDP.
- Defense-related exports from Texas totaled $12.4 billion in 2022, primarily aircraft parts and military electronics.
- Lockheed Martin's Fort Worth facility generated $15.2 billion in economic output for Texas in 2022 through F-35 production.
- Raytheon (RTX) in McKinney contributed $4.8 billion to Texas economy via missile systems in FY2023.
- Bell Textron's Amarillo operations added $3.1 billion in economic impact from helicopter manufacturing in 2022.
- Texas defense industry paid $42.3 billion in wages in 2021, averaging $85,000 per job.
- Federal defense spending in Texas supported 1.2 million jobs (direct, indirect, induced) in 2022.
- San Antonio's defense cluster generated $25.6 billion in GDP contribution in 2023.
- Dallas-Fort Worth metro area defense contracts reached $22.4 billion in FY2022.
- Texas A&D firms secured 14% of all U.S. DoD contracts by value in 2022.
- Defense industry multiplier effect in Texas is 2.1, meaning $1 in direct spending generates $2.1 total.
- Houston's NASA and defense-related activities contributed $7.9 billion to local economy in 2022.
- Texas defense payroll taxes contributed $3.2 billion to state coffers in 2021.
- El Paso's Fort Bliss and defense firms added $4.5 billion in regional GDP in 2023.
- Austin's defense tech sector generated $2.8 billion in venture capital inflows tied to defense in 2022.
- Corpus Christi's ship repair industry contributed $1.1 billion economically in FY2022.
- Texas defense R&D spending was $6.7 billion in 2022, 11% of national total.
- L3Harris in Greenville generated $2.9 billion in economic activity from avionics in 2023.
- Boeing's San Antonio site added $1.4 billion via 787 and defense work in 2022.
- Texas defense industry supported 4,200 small businesses as subcontractors in FY2022.
- Defense spending in Texas grew 8.2% year-over-year from 2021 to 2022.
- Kirtland AFB-related defense in Texas border areas contributed $900 million in 2022.
- Texas ports handled $2.3 billion in defense cargo in 2022.
- Defense tourism around bases added $1.6 billion to Texas economy in 2023.
- Texas defense firms exported to 85 countries in 2022, led by NATO allies.
- Total defense capital investment in Texas reached $4.2 billion in 2022.
- Defense-related property taxes in Texas totaled $1.8 billion in 2021.
- Texas defense sector's return on federal investment is $1.89 per $1 spent.
- In 2022, Texas hosted 12% of U.S. defense manufacturing facilities.
Economic Contribution Interpretation
Everything from Amarillo helicopters to Austin venture capital proves that while everything may be bigger in Texas, it's our defense sector's $111 billion GDP footprint that truly makes the state the nation's indispensable, high-wage arsenal.
Employment Data
- Texas defense industry employed 162,000 direct workers in 2022, with average salary of $102,500.
- Fort Worth's aerospace cluster supported 78,000 jobs in 2023.
- San Antonio defense jobs totaled 104,000 in 2022, 15% of metro workforce.
- Raytheon McKinney employs 12,500 in missile defense production as of 2023.
- Bell Textron in Fort Worth has 11,000 employees focused on V-22 Osprey.
- Lockheed Martin Texas workforce is 28,000 across F-35 and other programs in 2023.
- L3Harris employs 6,200 in Waco for helmet and display systems in 2022.
- Boeing San Antonio supports 2,800 jobs in composites and defense.
- NASA Johnson Space Center in Houston employs 11,000 civil servants and contractors.
- Fort Bliss in El Paso sustains 45,000 military and civilian jobs in 2023.
- Dyess AFB near Abilene supports 5,200 jobs with B-1 bombers.
- Lackland AFB in San Antonio has 60,000 personnel including trainees.
- Texas defense jobs grew 4.1% from 2021 to 2022.
- Women comprise 28% of Texas defense workforce in 2023.
- Veterans hold 22% of Texas defense industry positions in 2022.
- STEM-skilled workers in Texas defense: 65,000 in 2023.
- Small business defense employment in Texas: 89,000 jobs in FY2022.
- Corpus Christi Army Depot employs 4,500 in helicopter maintenance.
- Austin's Anduril Industries added 1,200 defense tech jobs in 2023.
- Houston's KBR employs 3,200 on DoD logistics contracts.
- Greenville's L3Harris aerostructures division: 4,100 employees.
- Amarillo's Pantex Plant employs 4,800 in nuclear weapons work.
- Texas defense unemployment rate for sector: 2.8% in 2022.
- Entry-level defense jobs in Texas average $55,000 salary in 2023.
- Engineers in Texas defense earn median $118,000 annually in 2022.
- Texas defense added 12,000 net new jobs from 2020-2022.
- Hispanics represent 42% of Texas defense workforce in 2023.
- Fort Hood (now Cavazos) supports 38,000 military jobs.
- Sheppard AFB employs 7,500 in training roles.
- Texas defense contractors hired 25,000 new STEM graduates 2021-2023.
- Lockheed Martin Fort Worth added 1,500 jobs for F-35 Lot 15 in 2023.
- RTX McKinney plans 1,000 new jobs by 2025 for hypersonics.
Employment Data Interpretation
With job numbers soaring higher than a test missile and salaries that make other states weep into their tax ledgers, Texas has firmly entrenched itself as the nation's indispensable arsenal, proving that defending freedom is not just a patriotic duty but a colossal, high-tech economic engine.
Major Defense Contractors
- Lockheed Martin has 18,000 employees at its Fort Worth F-35 plant in 2023.
- Raytheon Technologies (RTX) McKinney facility produces 600+ missiles annually, specializing in AIM-9X Sidewinder.
- Bell Textron in Fort Worth delivers 12 V-280 Valor prototypes yearly for Army FLRAA program.
- L3Harris Waco produces 2,500+ integrated helmets for F-35 pilots annually.
- Boeing San Antonio manufactures composite wings for 787 and T-7A trainer.
- General Dynamics IT in San Antonio secured $2.5B Army contract for IT services.
- KBR in Houston provides logistics for 150,000 troops globally from Texas HQ.
- Anduril Industries Austin develops Lattice AI platform used in 20+ DoD programs.
- Vought Aircraft (Triumph Group) in Dallas builds nacelles for F-35.
- Astronics in Garland supplies 10,000+ cockpit displays yearly for military aircraft.
- Sierra Nevada Corp (now Sierra Space) in Houston works on Dream Chaser for DoD space missions.
- BAE Systems in Austin produces electronic warfare systems for F-35.
- Elbit Systems Fort Worth delivers 500+ digital helmet systems annually.
- Leonardo DRS in Dallas manufactures infrared detectors for 1,000+ vehicles yearly.
- Northrop Grumman in Rocketdyne (TX sites) supports hypersonic engines.
- SAIC in San Antonio holds $1.2B contract for USAF cyber training.
- Leidos in Houston manages $800M DoD health IT contracts.
- Cubic Corp in San Diego but TX ops provide simulation for 50+ bases.
- Parsons Corp in Houston delivers ISR for $1.5B Army program.
- CACI International in San Antonio supports 10,000 users on DoD networks.
- ManTech in Fairfax but TX teams handle $600M Navy cyber.
- Jacobs Engineering in Dallas won $2B Air Force civil works.
- Fluor Corp in Irving provides base ops for 15 installations.
- Amentum (ex-DYNCORP) in Fort Worth supports aviation training.
- Peraton Labs in Austin develops quantum tech for DoD.
- TX-based primes won 450 contracts over $10M each in FY2022.
- Lockheed Martin delivered 156 F-35s from Fort Worth in 2022.
- RTX produced 1,200 JASSM missiles from McKinney in 2023.
Major Defense Contractors Interpretation
Texas isn't just oil and cattle; it's a sprawling, high-tech arsenal where thousands of employees quietly build everything from the F-35s overhead to the cyber defenses securing our data, proving the state's real motto might as well be "Don't Mess With Our Defense Contracts."
Military Installations
- Fort Bliss is home to 1st Armored Division with 18,000 soldiers.
- Fort Cavazos (Hood) hosts III Corps and 40,000 troops.
- Joint Base San Antonio (JBSA) has 80,000 personnel across Lackland, Randolph, Fort Sam.
- Dyess AFB operates 44 B-1B Lancers and supports 3,500 airmen.
- Sheppard AFB trains 60,000 students yearly in tech school.
- Naval Air Station Corpus Christi trains 90% of Navy pilots.
- Ellington Field Joint Reserve Base hosts 4,000 reservists.
- NAS Kingsville trains 150 pilots annually with T-45 Goshawks.
- Fort Bliss expansion added 6,500 new housing units by 2023.
- JBSA-Fort Sam Houston is MEDCoE for 35,000 medical personnel.
- Randolph AFB manages USAF pilot training for 1,200 graduates/year.
- Laughlin AFB produces 90 pilots yearly for KC-46 tankers.
- Naval Station Ingleside (deactivated but legacy) supported $500M ops.
- Pantex Plant near Amarillo assembles 300 warheads annually.
- Red River Army Depot remanufactures 1,200 vehicles/year.
- Corpus Christi Army Depot overhauls 200+ aircraft yearly.
- Camp Mabry in Austin houses TX Army National Guard HQ.
- Ellington Airport supports NASA and Guard with 100 aircraft.
- Fort Bliss hosts 1.5 million acres for training.
- JBSA-Lackland basic training graduates 35,000 airmen/year.
- Dyess AFB runway handles 12,000 ops monthly.
- Sheppard AFB has 18 squadrons for maintenance training.
- NAS Corpus Christi has 6 training squadrons.
- Fort Cavazos trains 100,000 soldiers yearly.
- Randolph AFB historic tower manages 300,000 ops/year.
- Laughlin AFB border location supports binational training.
- Pantex secures 12,000 plutonium pits.
- Red River Depot employs 1,200 civilians for munitions.
- Texas hosts 15 major DoD installations covering 2M acres.
Military Installations Interpretation
Texas is a fortress that teaches, builds, and launches the nation's defense from the ground up, making it less a state and more a strategic command with really good barbecue.
Research and Development
- UT Austin's Applied Research Labs developed sonar for Navy, funded $50M annually.
- Texas A&M's TEES works on hypersonics with $120M DoD grants since 2020.
- Rice University's nanoelectronics lab supports DoD microchips, $30M funding.
- Lockheed Skunk Works Fort Worth prototypes NGAD 6th-gen fighter concepts.
- RTX McKinney Advanced Technology Center invests $100M in hypersonic materials.
- Bell Textron invests $50M in Amarillo for Future Long-Range Assault Aircraft autonomy.
- L3Harris Greenville develops open mission systems architecture for USAF.
- UT Dallas' hypersonic wind tunnel tests Mach 8 flows for DARPA.
- Southwest Research Institute in San Antonio leads $200M planetary defense projects.
- NASA JSC's hypersonic reentry tech supports DoD X-planes.
- Texas Tech's National Wind Institute tests drone resilience for military.
- SMU's Lokey Institute cyber research secures $25M DoD contracts.
- University of Houston's photonics lab develops lasers for directed energy weapons.
- Anduril Austin's AI autonomy lab prototypes counter-drone systems.
- Pantex's advanced manufacturing R&D produces plutonium components via 3D printing.
- Fort Bliss' McGregor Range tests 500 rocket launches yearly for Army.
- TAMU's nuclear engineering supports NNSA with $40M reactor research.
- Rice's Baker Institute models defense supply chains with DoD funding.
- UTSA's Institute for Cyber Security leads $15M quantum encryption project.
- Texas State University's UAS lab tests swarm tactics for Air Force.
- L3Harris Waco's AR/VR helmet prototypes integrate neural interfaces.
- Boeing San Antonio's composites R&D advances stealth materials for B-21.
- SwRI's robotics division develops autonomous vehicles for Army SBIR Phase III.
- UT Arlington's hypersonic aerodynamics lab simulates scramjet engines.
- NASA JSC's software lab verifies autonomy for X-66A with DoD.
- Texas defense R&D output includes 1,200 patents filed in 2022.
- DoD SBIR/STTR awards to Texas firms totaled $180M in FY2022.
- UT Austin's ICES simulates hypersonic flows for DARPA MACH program.
Research and Development Interpretation
From the Panhandle to the Rio Grande, Texas isn't just dabbling in defense—it's building the entire backbone of next-generation warfare, one hypersonic, nuclear, AI-autonomous, and quantum-encrypted breakthrough at a time.
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