Palmdale, CA, has long been a hub of aerospace and advanced manufacturing innovation in Southern California. Home to industry titans like Lockheed Martin and Northrop Grumman, Palmdale sits squarely at the entrance of the “Aerospace Valley,” an aerospace cluster spanning from Palmdale’s US Air Force Plant 42 to the Mojave Air and Space Port.
Situated in northern Los Angeles County, Palmdale’s bustling economy is also fueled by its thriving commercial corridors, recreation and tourism opportunities such as annual concert series and festivals, and a strong medical network anchored by Kaiser Permanente and the Palmdale Regional Medical Center, a 519-doctor hospital overseen by Southwest Healthcare.
Building History: The Artemis II Mission
On April 1, 2026, NASA successfully launched the Artemis II Mission, sending four astronauts farther into space than any human had before.
Pivotal to this mission is the Orion spacecraft, built in Palmdale, the only spacecraft capable of carrying humans beyond low-Earth orbit into deep space. With advanced life support systems, radiation protection, a heat shield designed to withstand extreme temperatures of 5,000 degrees Fahrenheit, and redundant systems that ensure astronaut safety in the event of unplanned detours, the Orion is a piece of aerospace history.
The Orion spacecraft joins a long line of spacecraft designed and constructed in Palmdale. Since the opening of US Air Force Plant 42 in 1952, aerospace innovation has driven the region forward.
Aerospace Incentive Program
The City of Palmdale Aerospace Incentive Program (PAIP) aims to further attract aerospace and defense-related businesses by offering up to $500,000 for new construction projects or $125,000 for new leases within the City. This unique incentive program complements state tax credit programs and brings local job opportunities to the region.
To support Palmdale’s existing aerospace and defense ecosystem, end users of the qualifying company’s product must either be directly in the aerospace or defense industry or play a crucial role in the aerospace and defense supply chain.
The program’s first recipient, AS Aerospace, produces fasteners for a range of customers in the aerospace industry. Bringing 150 jobs to the region, AS Aerospace broke ground on its new, 90,000-square-foot manufacturing facility in October 2025.
Longstanding workforce development programs in the Antelope Valley consistently produce a highly skilled, eager workforce ready to work locally. Coupled with a business-friendly approach to development, affordable paths to homeownership, and abundant open space and nature, Palmdale is an ideal destination for relocation or expansion.
Global, Regional, and Local Connectivity
The City of Palmdale is the grantee of Foreign Trade Zone #191, which offers inverted tariff relief, tax exemptions, and duty deferral and elimination to businesses involved in international trade. Free cost-benefit analyses are available to businesses operating or considering operating within the Foreign Trade Zone, which spans the Antelope and Santa Clarita Valleys.
Palmdale is within a 90-mile radius of the Los Angeles International Airport and the Ports of Los Angeles and Long Beach. Convenient freeway access through State Routes 14 and 138 and freight rail access via the Union Pacific Railroad connect Palmdale to Southern California and beyond.
Major distribution companies, including Trader Joe’s, Michaels, and SYGMA, take advantage of the region’s streamlined logistics and strategic benefits.
Major Growth in the Pipeline
Palmdale welcomed over 800 new businesses in 2025, and the business community only continues to grow. With major entertainment companies committed to upcoming commercial developments in Palmdale, the City anticipates a spike in development, regional spending, and economic opportunity.
The City continues to prepare for the Center for Transportation Technology Excellence, a joint effort with Los Angeles Metro to develop an 8.6-square-mile facility dedicated to bus and rail research, development, and manufacturing. The center will feature a test track, testing laboratories, and over 1.9 million square feet of industrial space. It will also create approximately 116,000 direct and indirect jobs, providing local companies with opportunities to be part of the center's design, construction, and supply chain.
The planned High Desert Corridor will transform how goods and people move through the region. The High Desert Corridor is a proposed multipurpose transportation route connecting Palmdale to Victor Valley in San Bernardino County, which will link Metrolink, Brightline West, and California High-Speed Rail, generating over $12 billion in economic activity during its development and construction phases.
To learn more about Palmdale’s initiatives and get in contact with staff ready to assist you, visit https://www.CityofPalmdaleCA.gov/EconomicDevelopment.
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