Vandenberg’s impact on Central Coast economy could grow to $6 billion in next decade
The newly renamed Vandenberg Space Force Base already has a $4.5 billion impact on the Central Coast economy — but that amount is set to grow even larger in the coming decade.
A new study commissioned by economic development group REACH estimated the military base’s economic impact could grow to more than $6 billion in the next 10 years thanks to a massive push to increase commercial space activities.
According to the study, the base near Lompoc directly impacts the local economy with its employment of military and federal civilian personnel and defense contracting and capital investment, but it also indirectly contributes to the economy through retired military personnel who stay in the area after leaving the military, a network of regional high-paying jobs and of course, rocket launch tourism.
“Overall, the ... models confirm what is widely recognized in the adjacent communities: (Vandenberg) provides substantial positive economic benefits to the nearby counties and California as a whole,” read the study.
On Friday, the base officially changed its name from Vandenberg Air Force Base to reflect its role in the U.S. Space Force, the Defense Department’s newest branch of the armed forces. Vandenberg’s primary unit, the 30th Space Wing, became Space Launch Delta 30.
REACH chief operating officer Andrew Hackleman said the study “really illuminates the many and far-reaching ripple effects of having the nation’s premier West Coast launch site in our backyard.”
“The future growth projections also underscore the big payoff of supporting the burgeoning commercial space industry around the base and into San Luis Obispo County,” he added.
Growth could add thousand more jobs to Central Coast, study finds
The study, conducted by Cal Poly and partially funded by the county of Santa Barbara, found that Vandenberg already powers roughly 16,000 jobs across Santa Barbara and San Luis Obispo counties.
But thanks to recent efforts to attract more commercial space companies to the base, researchers estimate that could grow by about 1,746 new jobs per year — which would more than double the number of Vandenberg-affiliated jobs in the region over the next 10 years.
Those jobs would be in industries such as professional, scientific and technical services, as well as construction and administration services, according to the study.
“What we found is what many people in communities around the base already know — that Vandenberg provides substantial positive economic benefits well beyond its borders and that its anticipated future growth presents even greater economic opportunities to nearby counties and the state as a whole,” Cal Poly finance professor Cyrus Ramezani said in a news release. Ramezani is lead author of the study.
The study also found that the base “supplies quality jobs, stimulates the production of goods and services and increases local incomes and overall expenditures on goods and services across (Santa Barbara and San Luis Obispo) counties.”
“High-quality, future-oriented jobs are what we need in the region, and this study shows expanding space activity at Vandenberg can provide that,” Santa Barbara County Supervisor Joan Hartmann said in the release. “We should embrace that expansion, including prioritizing the planning and infrastructure needed to unlock job growth.”
More commercial space opportunities power Vandenberg growth
Vandenberg has long been a military base with its eyes trained fully on the stars.
The base is the West Coast launch facility for major aerospace companies including SpaceX and United Launch Alliance, as well as some smaller start-up companies trying to break into the market.
In August, REACH announced a massive partnership to help bring more commercial activity to the base. The initiative brought together business, education and government stakeholders across San Luis Obispo and Santa Barbara counties to create a “thriving space enterprise” at Vandenberg.
Together, representatives of those groups are developing a master plan dedicated to transforming Vandenberg into a commercial space hub. This includes examining infrastructure needs, human capital development and governance and finance opportunities needed to transform the base in the space port of the future.
Several of the expansion projects, from on-base launch pad improvements to off-base roads and utility connections, are underway or under consideration, according to the release.
The first phase of that plan is expected to be finalized in the coming weeks, according to the release.
“Vandenberg is excited to be launching into a new era of cooperation with commercial partners to further national security strategic interests while contributing to the economic vitality of the region,” Col. Anthony Mastalir, Space Launch Delta 30 commander, said in the release. “Vandenberg is proud of its long history in the community and looks forward to building on that relationship to assure access to space for the U.S. Space Force and our nation.”
The study released Friday noted several economic benefits to expanding military and commercial space activity at Vandenberg.
Beside total economic impact, growth at the base creates more long-term and higher-paying jobs, increases employment opportunities in central Santa Barbara County and pushes up wages in the aerospace, defense and transportation manufacturing sector, according to the release.
The base also provides more opportunities for local college graduates who will then stay in the area rather than taking skills elsewhere, the release said.
“We have a significant opportunity here,” Santa Barbara County Fifth District Supervisor Steve Lavagnino said in the release. “We should be looking at some of our one-time cannabis tax revenue as well as infrastructure funding and COVID-19 stimulus to do what we can to accelerate the economic engine of Vandenberg (Space) Force Base.”
To read the full study, visit REACH’s website at ReachCentralCoast.org.
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