Aerospace and Defense Companies Thrive in Arkansas

by Clint O’Neal, Arkansas Economic Development Commission

With our nation celebrating its 250th anniversary, it’s important to take stock of the freedoms we enjoy in the United States and what it takes to protect these liberties. A thriving aerospace and defense industry, along with a strong military, are essential for defending our nation and allies around the world.

Arkansas plays a vital role in supporting both the aerospace and defense industry and our nation’s military. Across the state, there are more than 150 aerospace and defense firms with manufacturing and/or service operations. The aerospace sector has been our state’s top export for years. The state is home to five major military installations, a strong veteran community, and a growing defense-industrial base.

There’s never been a better time to do business in Arkansas. U.S. News & World Report recently ranked Arkansas the top state for overall affordability. We're second in the U.S. for Best Construction Environment (Associated Builders and Contractors), third in the nation for the Best State to Start a Business (Forbes Advisor) and in the top 10 for Economic Outlook according to the American Legislative Exchange Council.

Arkansas companies are keeping more of what they earn, too. Arkansas Gov. Sarah Huckabee Sanders has cut taxes four times since taking office in 2023, dropping the state's top income tax rate from 4.9% to 3.7% — a 25% reduction, with more to come.

Together, these facts tell a powerful story: Arkansas is a place where military- and defense-focused companies can find a business-friendly environment, supportive communities, and momentum they need to soar.

Arkansas is one of the most veteran-friendly states in the country, home to around 73,000 military-affiliated employees and over 260,000 veterans and retirees. This high number of skilled warriors gives employers access to people who understand leadership, discipline and responsibility, along with communities that celebrate military service and national defense.

Arkansas' Ebbing Air National Guard Base is quickly becoming one of the world's top military aviation training hubs. Foreign-owned F-35 fighter jets are delivered to Arkansas, where American instructors train allied pilots. Those pilots return home to train their own, fostering both a collaborative understanding of our most advanced fighter platform and sales for American defense companies.

The Pine Bluff Arsenal is playing a renewed role in national security. Through the support of Arkansas' Congressional delegation and an enhanced-use lease strategy, unused federal property there will support defense partners who are building munitions alongside the U.S. Army. For nearby communities like White Hall and Pine Bluff, it means jobs, good wages and economic momentum. For our military, it means faster progress toward rebuilding critical stockpiles.

Located in Jacksonville, the Little Rock Air Force Base is home to the world’s largest fleet of C-130 cargo planes and is the primary C-130 Hercules training base, preparing pilots and flight crew for the needs of the modern military. The Little Rock Air Force Base is a critical hub for the U.S. Air Force and service branches in readying our service members for global mobility missions and ensuring our nation can move quickly in combat and in peacetime.

For over 80 years, Camden's Highland Industrial Park in South Arkansas has anchored the region’s most important defense manufacturing cluster, home to industry giants like L3 Harris, Lockheed Martin, Raytheon, General Dynamics, and many others. The products made at this industrial park are helping America and our allies stand firm on multiple fronts, thanks to community trust and workers who understand that speed-to-battlefield protects American lives.

All this didn’t happen by accident. Time and again, Arkansas has moved deliberately to make the state work for our military and defense partners.

When defense and aerospace companies choose Arkansas, they're not just getting a skilled workforce and an excellent business climate. They're choosing elected leaders who understand military service and mission-critical operations, and a state where sacrifice, support and respect for the armed forces is just who we are.

Arkansas welcomes that mission. Our state has a proven record of business support, helping aerospace and defense companies move with speed and confidence. In a time when military readiness often depends on connection, Arkansas stands out as a place built to connect. For companies on the front lines of conflicts around the globe, that can make a world of difference.