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Colorado Springs can weather economic impacts from loss of U.S. Space Command

COLORADO SPRINGS — Sandy’s Restaurant is bustling with customers enjoying lunch favorites like the cowboy burger, Tony’s burrito, and the special of the day — Fruity Pebbles cheesecake conchas. General Manager Sam Avina welcomes his regulars, including members of the U.S. Space Command, who will soon be relocating to Huntsville, Alabama.

Despite the impending move, Avina is confident in the long-term success of Sandy’s, an institution in operation since the 1970s. The Colorado Springs economy, heavily reliant on the aerospace, cybersecurity, and defense sectors, is expected to remain strong even with the departure of U.S. Space Command.

El Paso County leads in defense contractor spending and defense personnel spending in Colorado, highlighting the region’s robust defense industry. While the relocation of Space Command is disappointing, industry experts believe that Colorado Springs will continue to thrive.

Mayor Yemi Mobolade and economic development officials are working to ensure that Colorado Springs remains a key player in the evolving landscape of American military readiness. The city aims to contribute to the development of the Golden Dome air defense system, a project with significant national security implications.

Despite concerns about the relocation, Colorado Springs is home to a strong aerospace and defense sector, with companies like L3Harris, Lockheed Martin, and Northrop Grumman driving innovation and economic growth. Private sector employment in the aerospace industry has seen a significant increase in recent years, demonstrating the city’s resilience.

While the move of U.S. Space Command may impact Colorado Springs’ reputation as a leader in space, the city’s established aerospace prowess and skilled workforce position it well for future opportunities. The loss of Space Command is seen as a setback, but not a fatal blow to the city’s economy.

As Colorado Springs navigates the transition, community leaders are focused on leveraging the city’s strengths to continue driving economic growth and innovation in the aerospace and defense sectors.

Peterson Space Force Base in Colorado Springs on Sept. 10, 2025. (Photo by RJ Sangosti/JS)

Long-lasting political tussle

The relocation of U.S. Space Command from Colorado to Huntsville, Alabama, marks the end of a yearslong political battle over the command’s permanent location. Despite concerns about the move, Colorado Springs is well-positioned to weather the economic impact and continue thriving in the aerospace and defense sectors.

City leaders are focused on maintaining Colorado Springs’ status as a hub for aerospace innovation and development, ensuring that the city remains a key player in the evolving landscape of American military readiness.

As the city transitions to a post-Space Command era, the focus is on leveraging existing strengths and fostering continued growth and innovation in the aerospace and defense industries.

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