“IT’S AN IMPORTANT DAY FOR NOT ONLY MIDLAND, BUT THE NATION, AS WE SEE THE PRIVATE SPACE SECTOR BECOMING A VITAL PART OF OUR FUTURE ECONOMY. THE SPACEPORT IS CO-LOCATED WITH OUR COMMERCIAL AIRPORT WHICH WILL ALLOW MIDLAND TO ATTRACT ADDITIONAL AEROSPACE COMPANIES TO THE COMMUNITY.”
- MIDLAND DEVELOPMENT CORPORATION BOARD CHAIRMAN ROBERT RENDALL
While not a traditional economic driver for the Permian Basin region, the Aerospace and Space Exploration cluster is primed for development as a local competency that will pay economic dividends over the long-term. Opportunities for development of this cluster are driven by 3 local factors:
1 - The Permian Basin region is home to a geographically dispersed network of 17 air fields of significant size. Midland International anchors the region, providing the most significant passenger and cargo capacity, complimented by significant capacity from county and municipal air fields.
2 - The dispersion of economic activity throughout the region, driven both by the vastness of the region and the significance of oil and gas exploration which occurs largely in low-population rural areas, drives the need for air access points in close proximity to operations.
3- The Midland International Air and Space Port's was recently designated as a FAA approved spaceport, opening the doors to the development of a unique and robust Aerospace and Space Exploration cluster.
Communities throughout Permian Basin have a history of sustained investment in developing local air capacity through improvements to air fields, including runway extension, hangar construction/reconstruction, and maintenance repairs. The Cities of Midland and Odessa, meanwhile, have raised the bar staking out a competitive advantage in securing Midland International's designation as a FAA approved spaceport and attracting two related business, XCOR and Orbital Outfitters. In the years to come, economic developers and communities must continue to maintain and expand the capacity of regional airfields, and make new investments to capitalize and further develop the region's cluster of space exploration companies.
The industry group that comprises the cluster includes.
1 - The Permian Basin region is home to a geographically dispersed network of 17 air fields of significant size. Midland International anchors the region, providing the most significant passenger and cargo capacity, complimented by significant capacity from county and municipal air fields.
2 - The dispersion of economic activity throughout the region, driven both by the vastness of the region and the significance of oil and gas exploration which occurs largely in low-population rural areas, drives the need for air access points in close proximity to operations.
3- The Midland International Air and Space Port's was recently designated as a FAA approved spaceport, opening the doors to the development of a unique and robust Aerospace and Space Exploration cluster.
Communities throughout Permian Basin have a history of sustained investment in developing local air capacity through improvements to air fields, including runway extension, hangar construction/reconstruction, and maintenance repairs. The Cities of Midland and Odessa, meanwhile, have raised the bar staking out a competitive advantage in securing Midland International's designation as a FAA approved spaceport and attracting two related business, XCOR and Orbital Outfitters. In the years to come, economic developers and communities must continue to maintain and expand the capacity of regional airfields, and make new investments to capitalize and further develop the region's cluster of space exploration companies.
The industry group that comprises the cluster includes.
Economic Impact
- 28 Establishments in the region
- 1.60 Jobs Multiplier
- 70.2% of Jobs are held by males
Industry Requirements: Industry / Amount / In-Region / Out of Region
Petroleum Refineries / $9,389,716 / 85.6% / 14.4%
Freight Transportation Arrangement / $1,907,621 / 26.7% / 73.3%
Couriers and Express Delivery Services / $1,214,467 / 26.6% / 73.4%
Other Support Activities for Air Transportation / $888,487 / 27.2% / 72.8%
Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing / $649,543 / 98.5% / 1.5%
Airfields, as economic engines and centers for all elements of the Aviation/Aerospace cluster activity, are key contributors to the regional economy. Below is a summary of the Texas Department of Transportation’s estimated economic impacts on the region for 2011.
- Big Spring McMahon-Wrinkle: Output $9,253,086 / Labor Income $2,983,098 / Jobs 64.
- Fort Stockton - Pecos County: Output $3,349,672 / Labor Income $1,463,072 / Jobs 37.9
- Midland International: Output $354,720,561 / Labor Income $145,843,014 / Jobs 4,757
- 1.60 Jobs Multiplier
- 70.2% of Jobs are held by males
Industry Requirements: Industry / Amount / In-Region / Out of Region
Petroleum Refineries / $9,389,716 / 85.6% / 14.4%
Freight Transportation Arrangement / $1,907,621 / 26.7% / 73.3%
Couriers and Express Delivery Services / $1,214,467 / 26.6% / 73.4%
Other Support Activities for Air Transportation / $888,487 / 27.2% / 72.8%
Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing / $649,543 / 98.5% / 1.5%
Airfields, as economic engines and centers for all elements of the Aviation/Aerospace cluster activity, are key contributors to the regional economy. Below is a summary of the Texas Department of Transportation’s estimated economic impacts on the region for 2011.
- Big Spring McMahon-Wrinkle: Output $9,253,086 / Labor Income $2,983,098 / Jobs 64.
- Fort Stockton - Pecos County: Output $3,349,672 / Labor Income $1,463,072 / Jobs 37.9
- Midland International: Output $354,720,561 / Labor Income $145,843,014 / Jobs 4,757
Employment Outlook
Black: Permian Basin Region /
Royal Blue: Texas /
Light Blue: Nation
In 2014, the region maintained an estimated 202 jobs in the Aerospace and Space Exploration Cluster. While the jobs total is 88% below the national average for a typical region the size of Permian Basin and projected to expand 11.2% from 2014 to 2019 versus 4.9% nationally, despite a relatively small employment footprint, the cluster is primed to grow due to recent improvements in the Midland International Air and Space Port, development of associated business parks, and investments made by rural Permian Basin communities in airport infrastructure. Average earnings for jobs in the cluster are approximately $67,509, 33.7% below than the national average.
Economic Development Catalysts
On September 17 2014, the Midland International Airport
announced the Federal Aviation Administration (FAA) approval of a Commercial
Space Launch Site License (Space Port). The now Midland International Air and
Space Port is the first primary commercial service airport to be certified by
the FAA as a spaceport.
The Midland Development Corporation approved $1.5 million in January 2014 to refurbish a hangar at the Midland International Airport for California based company XCOR to launch its Lynx Suborbital Spacecraft from the facility. XCOR broke ground on hangar refurbishment efforts in August 2014.
In January 2014, Orbittal Outfitters, a NewSpace company that provides a services to vehicle developers and other companies in the aerospace sector, announced it would move its headquarters to the Midland International Airport. The Midland Development Corp. approved an estimated $7 million agreement permitting the company to manage and operate a MDC owned $3.2 million altitude chamber facility. The MDC board also agreed to provide the firm with a $2.2 million incentive to construct its new headquarters and $1.5 million to assist in its relocation from California.
In 2012, the Midland Development Corporation approved $10 million in financial incentives to assist XCOR Aerospace to establish a new Commercial Space Research and Development Center Headquarters in Midland
The Midland Development Corporation approved $1.5 million in January 2014 to refurbish a hangar at the Midland International Airport for California based company XCOR to launch its Lynx Suborbital Spacecraft from the facility. XCOR broke ground on hangar refurbishment efforts in August 2014.
In January 2014, Orbittal Outfitters, a NewSpace company that provides a services to vehicle developers and other companies in the aerospace sector, announced it would move its headquarters to the Midland International Airport. The Midland Development Corp. approved an estimated $7 million agreement permitting the company to manage and operate a MDC owned $3.2 million altitude chamber facility. The MDC board also agreed to provide the firm with a $2.2 million incentive to construct its new headquarters and $1.5 million to assist in its relocation from California.
In 2012, the Midland Development Corporation approved $10 million in financial incentives to assist XCOR Aerospace to establish a new Commercial Space Research and Development Center Headquarters in Midland
