Aerospace companies in San Diego: a small factory count inside a large drone and defense market

Census data counts only 28 aerospace manufacturing establishments in San Diego County, and it won't publish a reliable job total for them. The region's aerospace economy is better read through its defense contracts, where it leads the country in unmanned systems.

Market report4 min readPublished

The San Diego metro had 28 aerospace product and parts manufacturing establishments in 2023, 1.47% of the US total (Census County Business Patterns); the employee and payroll totals are high-noise figures the Bureau flags as unreliable. Federal contracts coded to aerospace manufacturing and performed in San Diego County reached $2.40 billion in fiscal 2025, led by General Atomics Aeronautical Systems and Northrop Grumman. San Diego Regional EDC ranks the region first nationally for unmanned systems contract obligations.

  • 28 aerospace manufacturing establishments in 2023; the employee total is not reported (high-noise figure).
  • 14 of the 28 make aircraft parts and auxiliary equipment, employing 1,841 people.
  • $2.40 billion of federal aerospace manufacturing contracts were performed in San Diego County in fiscal 2025, $1.36 billion of it to General Atomics entities.
  • Kratos, still listed at a San Diego address on EDGAR, gives Round Rock, Texas as its headquarters in its latest 10-K.
On this page

This page is for buyers, job seekers and sellers looking at San Diego's aerospace companies. It's shorter than our other metro reports on purpose: the Census manufacturing count here is small and partly unpublished, so we say what it shows, point to the larger figures, and spend the rest on the data that does describe the market.

What Census data shows

US Census Bureau County Business Patterns (CBP) 2023, NAICS 3364 (Aerospace Product and Parts Manufacturing), San Diego-Chula Vista-Carlsbad, CA Metro Area (CBSA 41740), which is San Diego County:

Measure (2023)San Diego metro
Establishments28
EmployeesNot reported (high-noise figure)
Annual payrollNot reported (high-noise figure)
Share of US establishments1.47% of 1,901

The Census Bureau did publish employee and payroll totals, but it flags them as high-noise: the noise it adds to protect individual businesses changed them by 5% or more, so we don't repeat them. Size classes are partly withheld:

Employees per establishmentEstablishments
1 to 44
5 to 93
10 to 195
20 to 493
50 to 99Not published
100 to 2496
250 or moreNot published

So 12 establishments have fewer than 20 employees, at least 6 have 100 or more, and 7 sit in cells the Bureau doesn't publish. By code, 14 make other aircraft parts and equipment (1,841 employees), 8 make engines or engine parts and 3 are aircraft manufacturers; the remaining 3 aren't published by code. For a reliable statewide total, use the California aerospace report: 347 establishments and 56,575 employees.

Why the count understates San Diego

CBP classes each location by its main activity. San Diego's aerospace work is heavy on things that land in other codes: aircraft maintenance for the Navy (support activities for air transportation, NAICS 488190, has 49 establishments and 1,287 employees here), guidance and avionics (NAICS 334511, 15 establishments) and engineering services. One company can also run several sites, and the count leaves out anyone without paid employees.

The market in contract data

USAspending shows $2.40 billion of federal contract obligations in fiscal 2025 coded to aerospace manufacturing (NAICS 3364) with San Diego County as the place of performance. The Department of Defense accounted for essentially all of it: $2.41 billion, slightly more than the total because another agency's net deobligation offsets it. Aircraft manufacturing accounted for $1.73 billion and aircraft parts for $659.8 million.

Recipient (as named in the federal record)FY2025 obligations
General Atomics Aeronautical Systems$1,036.2 million
Northrop Grumman Systems Corporation$529.3 million
General Atomics$325.5 million
Northrop Grumman Systems Corporation (second record)$102.1 million
Aircraft Readiness Alliance II$88.9 million
ES3 Prime Logistics Group$80.9 million
Velo Aviation$59.3 million
AVMAC$50.3 million

The list shows the two halves of the market: unmanned and military aircraft makers at the top, then aircraft readiness and maintenance contractors. Northrop Grumman's 2025 10-K lists San Diego among the major locations of its Aeronautics, Mission and Space Systems sectors.

San Diego Regional EDC's defense innovation roadmap, released on 27 October 2026, puts the bigger picture at an average of $11.6 billion a year in defense contracts and grants, more than 6,700 defense-related assets, and first place nationally in contract obligations for autonomous and unmanned systems. It cites the San Diego Military Advisory Council's estimate of $61.3 billion of defense economic impact in fiscal 2025, 22.2% of gross regional product.

Listed companies: check the 10-K, not the database

EDGAR's address field lags reality here, so each company below was checked on its own filing:

CompanyWhat its filing says
Kratos Defense & Security Solutions (KTOS)EDGAR shows San Diego, but the fiscal 2025 10-K cover gives Round Rock, Texas as its principal executive office
AEVEX (AVEX)Solana Beach headquarters; listed in 2026 and hasn't filed a 10-K yet. Its 10-Q reports $418.5 million of revenue for the first half of 2026
SDR Drone (SDCO)Its 2025 10-K was filed under a former name with a Las Vegas address, so we don't count it

Large private employers such as General Atomics don't file with the SEC, which is why contract data names them and EDGAR doesn't.

Selling into San Diego aerospace

The roadmap counts more than 7,600 regional companies that haven't yet worked with the Defense Department, and it reports that 62% of surveyed firms already in the defense market struggle to move from pilot to full-scale production. That's the opening for sellers: production engineering, quality systems, supply chain finance, facilities and compliance help for small drone and component makers trying to scale.

The checks every supplier faces apply here too: AS9100 certification (searchable in the IAQG's OASIS database), ITAR registration under 22 CFR 122.1 for anyone manufacturing defense articles, and CMMC, where Phase 2 starts on 10 November 2026. For the federal side of the sale, see selling to government; for a market built around the same customers, see defense contractors in San Diego.

Local sources

SourceWhat it gives you
San Diego Regional EDC defense roadmapContract totals, rankings and the new San Diego Defense Council
San Diego Military Advisory Council reportsThe annual Military Economic Impact Report (2025 edition, November 2025)
California bizfileEntity status for any California company
USAspendingAwards by recipient and place of performance

Next step: for a fuller Southern California supplier picture, read the report on aerospace companies in Los Angeles.

Sources

Written by the Bebop team at Blackpearl Group. Published .

Questions people ask

How many aerospace companies are in San Diego?

Census County Business Patterns counted 28 aerospace product and parts manufacturing establishments in the San Diego metro in 2023, 14 of them aircraft parts makers. The Bureau published an employee total but flagged it as a high-noise figure, so it isn't reliable. Many San Diego aerospace firms are classed as maintenance, avionics or engineering businesses, so the full count is larger than 28.

What are the biggest aerospace companies in San Diego?

In fiscal 2025 federal contract data, General Atomics Aeronautical Systems had $1.04 billion of aerospace manufacturing obligations performed in San Diego County and Northrop Grumman $529.3 million, the two largest. Northrop's 10-K lists San Diego among the major locations of three of its sectors. AEVEX, headquartered in Solana Beach, listed on the NYSE in 2026.

Is Kratos headquartered in San Diego?

Not any more, according to its own filing. EDGAR still shows a San Diego business address for Kratos Defense & Security Solutions, but the cover of its 10-K for the fiscal year ended 28 December 2025 gives 1 Chisholm Trail, Round Rock, Texas, as its principal executive office. Kratos reported $1.35 billion of revenue for that year.

Why is San Diego a center for drones?

Military demand and an established maker base. San Diego Regional EDC's October 2026 roadmap ranks the region first nationally in Defense Department contract obligations for autonomous and unmanned systems, and General Atomics Aeronautical Systems was the largest recipient of aerospace manufacturing contracts performed in the county in fiscal 2025. Navy bases add aircraft maintenance and readiness work.

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