Defense contractor commits to creating 450 high-wage jobs

AeroVironment Inc., a Virginia-based defense contractor, on Tuesday announced $30 million in new Albuquerque manufacturing facilities in an expansion supported by $6 million in Local Economic Development Act funding.

AeroVironment currently manufactures advanced radio frequency systems, satellite communications ground terminals, laser systems and stabilized precision optics and tracking technologies, among other products. It was first formed in 2019 by a group of defense companies under the name BlueHalo, which AeroVironment acquired in November 2024 for $4.1 billion.

The state of New Mexico awarded AeroVironment $5 million in LEDA funds while the city awarded it $1 million for the expansion. Under LEDA contracts, companies agree to meet certain hiring and infrastructure benchmarks in exchange for reimbursements from LEDA money, which comes from the state’s general fund. 

AeroVironment, which manufactures advanced defense and aerospace components in the Sandia Science & Technology Park, agreed to create 450 high-wage jobs over the next 10 years in exchange for the $6 million in state support. State officials say that translates into a $670 million economic impact. 

The company currently employs roughly 400 people, meaning the expansion will more than double its New Mexico workforce. LEDA projects contain clawback provisions in case a company does not meet benchmarks, including hiring. 

“I think this is what smart economic development looks like,” Rob Black, secretary of the New Mexico Economic Development Department, said in a telephone interview from a conference in Los Angeles. He was referring to the fact that AeroVironment’s predecessor, BlueHalo, also received state support prior to this expansion. That initial state investment created growth, state officials argue.

BlueHalo received $2.5 million in LEDA funds from Albuquerque in 2022 in addition to $16 billion in industrial revenue bonds to support new facilities in the park. In 2024, BlueHalo received $436,470 in Job Training Incentive Program, or JTIP, money to train 14 workers at an average wage of $54.29 an hour.

Black said AeroEnvironment fit the profile of the type of advanced energy, computing, space and defense company that state officials are trying to attract through these types of incentive programs. Such companies attract high-paying blue-collar jobs — for welding to electrical engineering — in addition to white-collar jobs that require doctorate degrees. 

Officials with New Mexico’s national laboratories and state government are trying to build a corridor for space and defense contractors to serve public and private-sector growth. 

“New Mexico today is No. 1 in the United States for family income growth because we’re creating and incentivizing high-wage jobs above and beyond our median income,” Black said. Labs, colleges and universities and other factors make New Mexico “uniquely competitive to outperform California, Colorado, Arizona and other states in these sectors.”

Black was in Los Angeles for a summit by UpFront Ventures, a Los Angeles venture capital firm that invests in early-stage technology companies. The New Mexico State Investment Council is using $1.8 billion of money from New Mexico’s sovereign wealth fund to invest in deep technology funds, including UpFront Ventures, Black said. Those funds then use the state money to invest in portfolio companies that create jobs in New Mexico, he said. 

Venture capital firms wanted to know from state officials how the government can help them get products to market quickly, Black said. They also want introductions to federal officials at the labs and Air Force, he added. 

“My No. 1 applause line yesterday was, ‘If you come to New Mexico your employees are going to have free childcare and early childhood education, they’re going to have free college, two-year and four-year skills training,’” Black said. “‘We’re going to help you with your workforce cradle to career to ensure your success in New Mexico.’ And we got an ovation for that line because nobody else in the country is doing that.”

The company in a statement said the $30 million investment will expand manufacturing operations across its three existing sites in the Sandia Science and Technology Park while “supporting major capital equipment purchases and workforce growth.”

Church Hutton, chief growth officer of AeroVironment, said in a statement that the expansion comes as the federal government continues to “emphasize the importance of defense contractors leaning forward, investing in domestic facilities, resilient supply chains, and skilled workforces that can deliver critical capabilities at scale, on time, and cost-effectivley.”

Gov. Michelle Lujan Grisham in a statement said, “When America needs to strengthen its national security, it turns to New Mexico."

“This investment reinforces our state’s role as a national leader in advanced defense and space manufacturing – strengthening U.S. security while creating high-wage opportunities for New Mexicans,” the governor said.

Mayor Tim Keller in a statement pitched Albuquerque as a city “where defense innovation becomes advanced manufacturing,” 

In the 2025 fiscal year, AeroVironment reported revenues of $820 million, up 14% on the year. It made $318.6 million in gross margins, according to a December investor presentation. The company released an updated fiscal year 2026 guidance of revenue between $1.95 to $2 billion and an adjusted EBITDA of $300 million to $320 million.