New report ranks Ogden, Salt Lake City aerospace industries as among the nation's best

SALT LAKE CITY — A new report from a company that advises firms on site selection is giving several Utah locations — notably the Ogden and Salt Lake City areas — high marks as top locales for aerospace and defense manufacturing.

"Markets such as Ogden, Salt Lake City and Grand Rapids, (Michigan), rank among the nation's top-performing locations despite not traditionally being viewed among the country's premier aerospace and defense hubs. Their strong performance demonstrates that competitive advantage is increasingly being shaped by factors beyond historical aerospace specialization," reads the new report by Global Location Strategies, released last week.

The high rankings potentially bode for yet more investment in Utah and other high-ranking locations, especially given the growth in U.S. government defense spending appropriations, according to Didi Caldwell, president and chief executive officer of Global Location Strategies. The Greenville, South Carolina, firm helps manufacturing and industrial firms select sites for new facilities and negotiate for location incentives.

"There's obviously going to be a lot more investment," she said. "We are at this point in time where we're making a shift from research and development and developing the next wave of technology into producing that technology at scale. So what that means is industrial capacity becomes very important. Do you have the workforce to be able to manufacture all of these? Do you have the ecosystem, the existing suppliers? Do you have personnel that has the safety clearances?"

The top metropolitan statistical area as defined by the U.S. Census Bureau for aerospace and defense investment is the Wichita, Kansas, area, according to the study. Ogden sits in the second spot among the 387 metropolitan areas reviewed, followed by the Dayton, Ohio, area and, in fourth place, the Salt Lake City area.

"Thanks to its strong defense ecosystem and competitive business environment, Ogden is a standout metro. Hill Air Force Base plays a key role, serving as a major hub for aircraft sustainment, logistics and defense operations. For decades, it has driven aerospace and defense investment across northern Utah," reads the report.

It singled out the presence of skilled workers in the area, reliable suppliers and "deep defense expertise." The report also noted competitive labor and utility costs.

The report noted the Salt Lake City area's connection to nearby Hill Air Force Base as well as the presence of industries that support aerospace and defense.

"Many engineers, technical experts and manufacturing workers are trained by the University of Utah and supported by a growing network of aerospace, defense and tech companies along the Wasatch Front," according to the report. "Labor and space costs are a bit higher than in some other markets, but lower utility costs help balance out expenses."

The Provo-Orem-Lehi area sits in the 12th spot nationally and fourth place in the Southwest.

One of the most significant defense projects in the Ogden area is the Sentinel nuclear defense missile system. The project is centered at Roy, and the Northrop Grumman project, to replace the aging Minuteman system, employs thousands.

In the Salt Lake City area, Caldwell noted AeroVironment's announcement last year of a $42 million guided missile and space vehicle project that's expected to create 500 jobs. Securing the project "is a really good example" of Utah winning a next-generation defense manufacturing deal, she said, and she expects more.

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